Trust Registration: Best option for two or more individuals intending to register an NGO to promote fields of arts, commerce, science, researh, education, sports, charity, social welfare, religion, environmental protection. Start Trust today & get...Trust Deed, Rules & Regulations, PAN, TAN, GST, Bank A/c Support & GST Software along with your Certificate.

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Trust Registration

What is Trust:

Trust is defined in section 3 of the Indian Trust Act, 1882 as “an obligation annexed to the ownership of property and arising out of a confidence reposed in and accepted by the owner, or declared and accepted by him, for the benefit of another or of another and the owner. In other words, it is simply a transfer of property by one person (the settlor) to another (the “trustee”) who manages that property for the benefit of someone else (the “beneficiary”). The settlor must legally transfer ownership of the assets to the trustee of the trust.

Types of Trusts:

Trust may be Private or Public. Public Trust is beneficial to the society at large and is governed and regulated by respective State Government. A Private Trust is mainly created for the benefit of one or more than one person and is governed and regulated by Indian Trusts Act, 1882. Trusts can also be used as a vehicle for investments, such as mutual funds and venture capital funds. These trusts are governed by Securities and Exchange Board of India (SEBI).

Public Trust:

The main objective of the Public Trust is not for profit. It's objectives are to promote fields of arts, commerce, science, researh, education, sports, charity, social welfare, religion, environmental protection etc.,. Trust may be formed, by way of a Trust Deed, by any two or more people associated for any literary, scientific or charitable purpose. The Trust Deed has to be filed with the Office of Jurisdictional Sub-Registrar. One should check Prevention of Names and Emblems Act before selecting a Trust Name. Trust Registration is regulated by the Jurisdictional Sub-Registrar.

Who shall register a Trust: According to Section 7 of Indian Trusts Act, 1882, a trust may be created by the following persons:

  • Every person competent to contract.
  • By or on behalf of minor with the permission of a principal civil court of original jurisdiction.
  • Hindu Undivided Family (HUF).
  • Association of Persons (AOP).
  • Trust by a woman.
  • Company.
  • What is Society:

    The main objective of the society is not for profit. It's objectives are to promote fields of arts, commerce, science, researh, education, sports, charity, social welfare, religion, environmental protection etc.,. Society may be formed, by way of a memorandum of association, by any seven or more people associated for any literary, scientific or charitable purpose. The memorandum of association has to be filed with the Registrar of Societies. The memorandum has to contain the name of the society, its objects, and the names, addresses and occupations of the members of the governing body, by whatever name it may be called, duly signed for consent by all the members forming the society. A copy of the rules and regulations of the society also has to be filed along with the memorandum of association. One should check Prevention of Names and Emblems Act before selecting a Society Name. Society Registration is regulated by the District Society Registar.

    Who shall register a Society: Any seven or more individuals intending to register an NGO to promote fields of arts, commerce, science, researh, education, sports, charity, social welfare, religion, environmental protection.

    What is Section-8 Company:

    The Section-8 Company is one of the types of companies in India, the main objective of this company is not for profit. It's objectives are to promote fields of arts, commerce, science, researh, education, sports, charity, social welfare, religion, environmental protection etc.,. How do Section-8 companies provide these services without revenue? Yes they provide these serices by collecting donations from public, corporates. These companies will get grants from governments. The nature of Section-8 companies are similar to Trust or Society but will have lot of credibility as it is registered under central government and a statutory auditor gives the audit report at the end of the accounting period. It can appeal the public for a great cause and get the donations easily. The donors can verify the financial reports through www.mca.gov.in, the Ministry of Corporate Affairs, government of India web portal. Section-8 Company can be registered as both Private or Public.

    The Government of India had announced on 26th January, 2018 that there is zero incorporation fee for the Companies registered with an Authorized Share Capital up to of Rs. 1,000,000/- (Rupees Ten Lakh), subsequently, it had been increased to Rs. 15 lakh. The Stamp Duty on MOA and AOA is not required to pay in most of the sates in India. The remaining fee such as Name Availability, Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) is applicable as usual.

    Who shall register a Section-8 Company: Any person or an association of persons intending to register a limited liability company for objects specified below can opt to apply for registration of Section 8 Company. The following have to be proved to the satisfaction of the Central Government that: (a) its objects includes promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object; (b) the company after incorporation intends to apply its profits, if any, or other income in promoting such objects only; and (c) the company intends to prohibit the payment of any dividend to its members.

    Section-8 Company ~ Trust ~ Society

    In India, there are mainly the three types of non-profit organizations i.e. Section 8 Companies (earlier Section 25): Societies registered under section 20 of the Societies Registration Act 1860. Trusts formed under Indian Trusts Act 1882. The following are the main differences between Section-8 Company, Trust and Society.

    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

    Why Should I register a Trust

    Below are the main reasons to register a Trust.

    Donations & Grants:

    Trust can raise donations from public easily. This type of NGOs can get grants from Government easily. The doners will get benefited under section 80G of the Income Tax while filing their Income Tax Return and the company can claim Income Tax benefits under section 12A of the Income Tax Act, 1961 if it gets licenses under Section 80G and 12A.

    Low Cost of Formation:

    The cost of formation of Trust is much ceaper than that of Section-8 Company. Seven members are not required to form a Trust. Digital Signatures are not required. The Annual Compliance Cost is also lower than Section-8 Company. Only Income Tax Return filing is required on yearly basis.

    Liense under FCRA

    The Trust can get license under Foreign Contribution Regulation Act, 2010 easily and get contributions, donations and grants from aborad easily. Getting license under Foreign Contribution Regulation Act is easier to the Society.

    Niti Ayog Registration

    The Trust can get registered with Niti Ayog and get Goverment grants easily.

    How to Register a Trust

    To register a Trust, there should be a minimum of two person who should be a majors. One of the members should be a locally resided person. Two witnesses are also required to form a Trust. You can find below the Documents required and Step by Step Society Registration Process.


    Documents Required

    • A

      Mmebers & Witnesses Documents

      1. Members & Witnesses PAN
      2. Members & Witnesses ID Proofs
        Aadhaar Card or Voter ID or Passport or Driver's License
      3. Members & Witnesses Address Proofs:
        Latest one month Savings Bank statement or
        Latest Telephone Bill on his own name or
        Latest Moblie Bill on his name or
        Latest Power Bill on his own name.
      4. Members & Witnesses latest passport size photograph
      5. Members & Witnesses Email ids
      6. Members & Witnesses Mobile Numbers linked with their Aadhar
    • B

      Trust Address Proofs

      1. Registered Office Address Proof: Latest Power Bill
      2. No-objection letter cum Affidavit from the Landlord.
      3. Rental Agreement from the landlord if the premises are rented.
      4. Society Email id.

    3 Step Trust Registration Process:

    • 1

      Drafting of Trust Deed

      Through CompaniesHouse - One Day

      We will draft Trust Deed and other documents of the Trust. We will then submit with the Registrar who does the vetting.

    • 2

      Submission with the Registrar

      Through Sub Registrar - One Hour Job

      We will submit the Trust Deed and other documents with the Sub-Registrar. We will make you present at the Sub-Registar office for signing the documents and pay the requisite fee.

    • 3

      Certificate of Registration

      Through Sub-Registar Office - 3 to 5 Days

      After scrutiny, the Registrar will approve the form and issues you the Registered Trust Deed.


    What All You Get

    • Registered Trust Deed
    • Trust PAN
    • MSME Registration
    • Section 12A License
    • Acknowledgement
    • Trust TAN
    • Import Export Code (IEC)
    • FCRA Registration
    • Other Registered Documents
    • GST Registration
    • Section-80G Licesne
    • Niti Ayog Registration Support

    What Next Once the Trust is Registered

    Congratulations!! on registering your new NGO. Most of the NGOs do not know what next once the Trust is registered. You can find below the other mandatory registratons and statutory compliance requirements of a Trust.


    Other Registrations

    • A

      GST Registration

      GST registration is Mandatory if you are a Taxable dealer in sale of Goods or supply of Services. If the company is registered under Section 12AA of the Income Tax Act, 1961 and the services provided by the Company are for charitable cause, then GST is exempted.

    • B

      License under Section 80G & 12A

      Section 80G of the Income Tax Act allows donations made to specified relief funds and charitable institutions as a deduction from gross total income. Section 12A specifies the exemption from paying income tax on surplus income of a specified relief fund or charitable institution.

      A charitable institution can apply for exemption under section 12A of the Income Tax Act in Form 10A and also for permission under Section 80G. It is beneficial for both donors and charitable institution if they have both permissions from Income Tax department because the doner can claim deduction from his gross total income and the charitable institution can claim exemption from paying income tax on surplus income.

    • C

      FCRA Registration

      If your Trust wishes to receive contributions, donations from abroad, you need to get license under Foreign Contribution Regulation Act, 2010 (FCRA).

    • D

      IPR Registration

      If you want to protect your Trust, brand, literary work, invention, you need to apply for Trade Mark, Copyright, Patent respectively with the department of Intellectural Properties of India.

    • E

      NITI Ayog Registration

      NITI AYOG Registration is required for NGO if it wants to get Government Grants.

    • F

      Import Export Code (IEC)

      Import Export Code (IEC) is required to be taken if your Trust wishes to import or export goods or services.

    Annual Compliance

    • 1

      Income Tax Return

      Every Society has to file it's Income Tax Return in form ITR-5 on or before 31st July of each year. Incase of Tax Audit, the date will be 30th September of each year.

    • 2

      TDS Return

      Every Society which is subject to file TDS returns has to file it with in Due date to avoid penalty.

    • 3

      GST Returns

      Any Society which subject to file GST returns on QRMS basis has to file with in due date to avoid penalties.

    • 4

      Accounting

      Any Trust is required to post journal entries and prepare it's books of accounts ie. Receipts & Payments Account and Balance Sheet at the end of the year.


    Let's Clear Your Doubts


    What is Trust?

    Trust may be formed, by way of a Turst Deed, by any two or more people associated for any literary, scientific or charitable purpose. The Trust Deed has to be filed with the jurisdictional Sub-Registrar office.

    What is Society?

    Society may be formed, by way of a memorandum of association, by any seven or more people associated for any literary, scientific or charitable purpose. The memorandum of association has to be filed with the Registrar of Societies. The memorandum has to contain the name of the society, its objects, and the names, addresses and occupations of the members of the governing body, by whatever name it may be called, duly signed for consent by all the members forming the society. A copy of the rules and regulations of the society also has to be filed along with the memorandum of association.

    What is Section 8 Company?

    Section 8 company may be formed with the Ministry of Corporate Affairs, Government of India, by way of a Memorandum and Articles of Association, by any two or more people associated for any literary, scientific or charitable purpose.

    Is there any minimum capital requirement?

    Not required.

    Do we need to renew the Certificate?

    No renewal is required.

    In howmany days a society can be registered?

    3 to 4 business days.

    What is the government fee for Trust Registration?

    The toal governement fee including incidental expenses will be Rs. 7,500/-.

    Can I start Trust from my home address?

    Yes, you can start a Trust from your home address too.

    Can I register my Trust on my own?

    Yes, but it is suggested to approach a consultant like us as Trust Deed needs to drafted legally.

    What are the minimum number of members required to register a Trust?

    Two.

    Who can apply for registration of a Trust?
    1. Every person competent to contract.
    2. By or on behalf of minor with the permission of a principal civil court of original jurisdiction.
    3. Hindu Undivided Family (HUF).
    4. Association of Persons (AOP).
    5. Trust by a woman.
    6. Company.
    Can a Trust receive contributions from overseas or non-residents?

    There are special requirements to be complied with under the Foreign Contribution and Regulation Act, 2010 before a Trust can receive any contributions or donations from overseas/outside India from non-residents. The provisions of the said Act are in addition to the provisions under the Trust Act.

    Register your Trust with us for less! Start here & Save! Contact Now!

    Get Trust Deed, Rules & Regulations, PAN, TAN, GST, Bank A/c Support & GST Software along with your Certificate!