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Trust Registration
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Trust Registration
What is Trust?
The primary objective of a Trust is not to generate a profit. Its goals include promoting the arts, commerce, science, research, education, sports, charity, social welfare, religion, and environmental protection. Using a Trust Deed, any two or more people associated with any literary, scientific, or charitable purpose may establish a trust. Trust Deed must be filed with the Office of the Sub-Registrar of Jurisdiction. The Prevention of Names and Emblems Act should be consulted before selecting a Trust Name. The Jurisdictional Sub-Registrar is in charge of Trust Registration.
Types of Trusts
Trust can be either public or private. The appropriate State Government governs and regulates Public Trust, which is advantageous to society as a whole. The Indian Trusts Act, of 1882 governs and regulates private trusts, which are often established for the benefit of one or more individuals. Investing vehicles like mutual funds and venture capital funds can also be utilized as trusts. The Securities and Exchange Board of India is in charge of regulating these trusts (SEBI).
Public Trust:
The Public Trust’s primary goal is non-profit. Its goals include advancing the arts, business, science, research, education, sports, philanthropy, social welfare, religion, and environmental protection, among others. Any two or more individuals who are associated may establish a trust through the use of a trust deed for any artistic, scientific, or charitable goal. The Office of Jurisdictional Sub-Registrar is the place where the Trust Deed must be submitted. Before choosing a trust name, one should verify the Prevention of Names and Emblems Act. The Jurisdictional Sub-Registrar oversees Trust Registration.
Who must register a trust? According to Section 7 of the Indian Trusts Act of 1882, the following people may establish a trust:
- Anyone is able to enter into a contract.
- by a juvenile or on their behalf, with the consent of the original principal civil court.
- Undivided Hindu Family (HUF).
- Association of Individuals (AOP).
- By a lady, trust.
- Company.
What is Society?
The primary objective of Society is not to generate a profit. Its goals include promoting the arts, commerce, science, research, education, sports, charity, social welfare, religion, and environmental protection. By drafting a memorandum of association, seven or more people associated with any literary, scientific, or charitable purpose may form a society. The Registrar of Societies must receive the articles of incorporation. The memorandum must be appropriately signed by all of the organization’s members and include the organization’s name, its objectives, and the addresses, terms, and occupations of the governing body members by whatever name it may be known. In addition to the memorandum of association, a copy of the Society’s rules and regulations must also be filed. The Prevention of Names and Emblems Act should be consulted before selecting a Society Name. The District Society Register governs Society Registration.
Who may register a Society:
Any seven or more individuals who wish to report an NGO to promote the arts, commerce, science, research, education, sports, charity, social welfare, religion, or environmental protection.
What is a Section-8 Company?
The Section-8 Company is one type of company in India, and its primary purpose is charitable. Its goals include promoting the arts, commerce, science, research, education, sports, charity, social welfare, religion, and environmental protection, among others. How do Section 8 companies provide these services without receiving compensation? Yes, they provide these services through public and corporate donations. These businesses will receive government grants. The nature of Section-8 companies is comparable to that of a Trust or Society, but they will have a great deal of credibility because they are registered with the central government, and a statutory auditor provides an audit report at the end of the accounting period. It can appeal to the public for a worthy cause and easily obtain donations. Through www.mca.gov.in, the website of India’s Ministry of Corporate Affairs, donors can verify the financial reports. Section-8 Companies may be registered as either Public or Private.
The Government of India declared on January 26th, 2018 that there is no incorporation charge for businesses with authorised share capital up to Rs. 1,000,000/- (Rupees Ten Lakh). This charge has since been raised to Rs. 15 lakh. Most Indian states do not require the payment of stamp duty on MOA and AOA. The other fees, such as Name Availability, Permanent Account Number (PAN), and Tax Deduction and Collection Account Number (TAN), are applicable as usual.
Who shall register a Section-8 Company: Any individual or association of individuals wishing to register a limited liability company for the purposes listed below may apply for registration of a Section-8 Company. The Central Government must be satisfied that:
- Its objects include the promotion of commerce, art, science, sports, education, charity, religion, social welfare, research, protection of the environment, or any other object.
- The company, after incorporation, intends to apply its profits, if any, or other income exclusively to promoting such objects.
- The company intends to prohibit the payment of dividends to its members.
Section-8 Organization Trust Society
There are primarily three types of non-profit organizations in India, namely Section 8 Companies (previously Section 25): Section 20 of the Societies Registration Act of 1860-registered organizations. Trusts were established by the Indian Trusts Act of 1882. The differences between Section-8 Company, Trust, and Society are outlined below.
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| Particulars | Section-8 Company | Trust | Society |
|---|---|---|---|
| Governing Law | Companies Act, 2013 | Indian Trusts Act, 1982 | Societies Registration Act, 1860 |
| Rigistering Authority | Registrar of Companies | Sub-Registrar | Society Registrar |
| Minimum Members | 2 Directors cum 2 Shareholders | Tow members | 7 Members |
| Cost of Formation | High | Medium | Low |
| Compliance | High | Low | Medium |
| Grants and Subsidies | High | Medium | Medium |
| FCRA Preference | Highly preferred | Low preferred | Low preferred |
| Section 80G & 12 A | Allowed to be registered | Allowed to be registered | Allowed to be registered |
| Stamp Duty | In most of the Indian states, it is not required | To be paid | Not required |
| Transperency | High | Less | Less |
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Why Do I Need to Register a Trust?
Listed below are the primary motives for registering in a Trust.
Donations & Grants:
The public can donate to a cause easily, and this category of NGOs can quickly obtain government grants. Suppose a company receives licenses under Sections 80G and 12A of the Income Tax Act of 1961. In that case, the donors will receive tax benefits under section 80G of the Income Tax Act, and the company will be eligible for tax benefits under section 12A.
Low Cost of Formation:
The cost of forming a Society is significantly lower than that of a Section-8 company or a trust. No stamp duty is due at the time of a society’s incorporation, and Digital Signatures are not required. Additionally, the Annual Compliance Cost is less than Section-8 Company. Annually, only the Minutes of the Society’s members must be submitted to the Society Registrar.
License under FCRA:
The Society can quickly obtain a license under the Foreign Contribution Regulation Act of 2010 and receive foreign contributions, donations, and grants. The Foreign Contribution Regulation Act makes obtaining consent simpler for Society.
How to Register an Organization
There must be a minimum of seven individuals who are majors to register a Society, and one of the members should be a resident of the area. Listed below are the Required Documents and Society Registration Procedure Step-by-Step.
Documents Required
Three-Step Registration:
What All You Get
- Certificate of Incorporation
- Articles of Association
- GST Registration
- Import Export Code
- Digital Signature Certificates
- Company PAN
- MSME Registration
- Commencement of Business
- Director Identification Numbers
- Company TAN
- PF Registration
- Company Resolutions
- Memorandum of Association
- Company Bank Account
- ESI Registration
- Company Agreements
Why Business Setup in India?
Since our inception as an Official Company Registration Agent, we have maintained close ties with the Ministry of Corporate Affairs, Government of India. From day one, our intention has been to offer a streamlined incorporation procedure that is quick and easy to utilize. Today, our system for company registration is among the most efficient and effective in India. You can file an application for a new company name in slightly more than 5 minutes, and your firm will often be fully registered within 3-5 days. In addition to maintaining affordable pricing for company formation, we are constantly investigating new ways to bring value to our clients. We are proud to be one of the least expensive ways to establish a business in India.
We have the knowledge to advise clients on the appropriate company structure to implement. The majority of our clients want assistance registering a business limited by shares. The limited company structure is prevalent because it permits the distribution of profits to shareholders while safeguarding them through restricted liability. Our team has more than 2 decades of experience founding companies and providing corporate and secretarial services, which aids in the growth of tens of thousands of our clients’ enterprises each year.
We are tremendously passionate about the quality of our service, and we are incredibly proud of the reviews we get from our customers, as evidenced by our outstanding reviews and ratings. Continually, our team is chosen due to the value and skill for which it is renowned. We have helped form the industry by giving our customers innovative business services and packaged solutions that have grown alongside their demands.
Our clients have access to complimentary help from a team of experts. We are always prepared to assist. Throughout the registration of your Company, you will be enabled to contact us by phone or email if you require assistance.
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ustomer confidentiality and safety come first. We safeguard your financial, business, and personal information to the utmost degree.
What Comes Next Following Trust Registration?
Congratulations on registering your new non-profit organization! Most NGOs do not know what to do after registering their organization. A Society’s other mandatory registrations and statutory compliance requirements are listed below.
Annual Conformity
Different Registrations
Let's Deal With Your Confusions
By drafting a memorandum of association, seven or more people associated with any literary, scientific, or charitable purpose may form a society. The articles of incorporation must be submitted to the Registrar of Societies. The memorandum must include the name of the organization, its purposes, and the names, addresses, and occupations of the members of the governing body, by whatever name it is known, duly signed by all members forming the organization. In addition to the memorandum of association, a copy of the Society's rules and regulations must also be filed.
Any two or more parties involved with any literary, scientific, or charitable goal may create a trust by signing a trust deed. A trust deed needs to be turned up to the neighbourhood sub-registrar office.
By filing Memorandum and Articles of Association with the Ministry of Corporate Affairs, Government of India, any two or more people can form a Section 8 company for any literary, scientific, or charitable purpose.
Not really.
No, you don't have to renew the certificate.
Approximately 3 to 4 working days.
The total government charge, which includes ancillary costs, will be Rs. 7,500.
Yes, you can..
yes, As ByLaws must be legally drafted, it is recommended that you contact a consultant such as us.
Two
Before a Trust can accept contributions or donations from overseas/outside India from non-residents, the Foreign Contribution and Regulation Act, 2010 stipulates specific requirements that must be met. The Society Registration Act's requirements are in addition to those of this Act.
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