Trust Registration - Unnati Consultants

A Non Government Organization is registered as trust, governed by Indian trust Act of 1882.It takes a hardly 15-20 days for the registration of Trust from the date of filing of the applictaion.Minimum 3 members are required for the formation of Trust. One of the main advantages of forming a trust is that it has a simple process of registration with simple regulations.

Documents required for Trust Registration:

Request letter to register a society.
Two copy of MoA including List of Proposed governing body and list of founder members of society: All pages to signed by all members.
Two sets of Rules & Regulations framed for the functioning of the society.
Affidavits (on Rs.10/- stamp paper from President/Secretary Society regarding the name/title of the society.)
Copy of Residence proof of all members.
Proof of ownership of the registered office of the society & no objection certificate.(on ten rupees stamp paper.)
Copy of proof of identification of all society.

Features of Trust Registration:

Biggest features of Trust Registration are that, those who want to involve family members as well in Trust can apply for Trust Registration.
To enhance cultural, academic and social condition of the people, work for democracy, good governance, peace, justice and cooperation.
Encourage the people to develop a much better society.
Work for rehabilitation of beggars in India.
To do programs which help in education?

Following steps are to be followed to complete the process of Trust Registration:

Selecting a Name

The first step towards Trust Registration is selecting a unique name for your Trust. The name selected should not violate or infringe someone else’s name or trademark.

Drafting of Deed

The second step is to draft a ‘Trust Deed’. The ‘Trust Deed’ has to be executed on appropriate non-judicial stamp paper, where the rate of stamp duty differs from state to state. The Settler is required to put his signature on every page of the photocopy of the Trust Deed. Moreover, it is compulsory for the settlers as well as the two other witnesses to be physically present along with their identity proof at the time of registration. The next step is to obtain an appointment with the sub-registrar office having jurisdiction based on the registered office of the Trust.

Trust Registration

Once you have drafted the ‘Trust Deed’ next step is to present the deed before the registrar of the trusts having jurisdiction. After presenting the deed before the registrar, the further Trust Registration process is undertaken by the office of the sub-registrar.

Obtain the Registration certificate

Once you have submitted the Trust Deed with the registrar, the registrar keeps the photocopy and returns the original registered copy of the Trust Deed. After completing all the formalities involved in the trust Registration process, the registration certificate is issued within a minimum of seven working days. Apply for PAN, TAN, and Bank Account The final step in Trust Registration is to apply for the allotment of PAN number and TAN. Further, apply for the Bank Account in which all donations shall be deposited.

12A and 80G Certificates

Section 12-A of Income Tax Act

The Income-tax Department issues 12A certificate to Trusts or NGOs. Any organization that has a 12A Certificate is not liable to pay Income Tax for an entire lifetime on its surplus income.

What is Section 80-G of the Income Tax Act?

If an organization has obtained an 80-G Certificate, then donors of that NGO can claim exemption from Income Tax. The application for registration under section 12A and 80G can be applied just after the registration of NGO, and the application has to be applied to the Commissioner of Income-tax (Exemption) having jurisdiction over the institution.

Final Thoughts

If you wish to run an NGO, the most preferred way is to form a public charitable trust. Moreover, the process of Trust registration in India is simple and requires less documentation. The primary document needed for Trust Registration is ‘Trust Deed.’ Our experienced team of advocates at unnati shall draft the ‘Trust Deed’ for you and help you the complete process of Trust Registration until you get your Trust registered. For further assistance, feel free to contact us.