NGO Registration, Grant Projects, Funding, 80G 12A Tax Rebate, FCRA Registration Consultancy

Trust Registration

Trust Registration Consultancy Service

Trust Registration is one of the main NGO Registration that Chanakya NGO Consultancy has expertization and experience with in-depth knowledge. Trust Registration is preferred by most professional and expert people, social activist and social entrepreneurs. Trust Registration method and form is desirous by professionals as NGO because it is easy to manage, run and operate from registration to further part. A Trust under Indian Trust Act is registered once in the Sub Registrar Office of the Revenue Department in most states of India. To register Trust it is easy process and it depends some different kind of documentation submission patter. Trust Deed that is the Memorandum of Trust is most valuable and require instrument and many things depends upon the formation and layout of the Trust in future. What is included at Aims and Objectives part to work for the mission with the vision of the founders and at By-Laws part to run and manage the Trust at legal part at funding part and at other parts including various kind of certifications as Income Tax Exemption Certificate, FCRA Registration Certificate and other certificates.

The Trust Deed matters most to get funding because what you are working on and how you are working must be included as you have planned presently and if it changes in future as per the available resources, requirements and required options accordingly. So to prepare the Trust Deed is main part of the Registration Consultancy work that we do and have our well experienced team with legal an social sector experts and mentors those prepare and update. The Trust Deed that is the Memorandum prepared as per the time and requirements based on the past experience and future perspectives to run and manage the social task and social development work.

Trust is National NGO

If you register a Trust it is considered as national NGO. Though the traditional clerical culture the Trust registered from Delhi is considered as national NGO but many Trust registered from different states are working as national NGO. Trust can be registered with minimum 3 persons as Trustees (Members) so it is easy to operate and run. There are many other options due to that to register and NGO is recommended and preferred as Trust.

National NGO Registration as a Trust in India under Indian Trust Act

Registration of Non Profit Organization (NPO) or Non Governmental Organization (NGO) of Social Organization or Voluntary Organization are different in India. Trust Registration in one of the main registration process of NGO. All registration processes including Trust, Society or Non Profit Section 8 Company are equal at Project Grants, to get Funding, to get Registration in Income Tax for Exemption, to get FCRA and to get any other facility and option that are available or proposed for any kind of NGO. There is no difference in the status of NGO whether it is registered in any process in India, as there are many processes including Trust under India Trust Act 1882. The major difference is in management and minimum number of Members/Trustees in Trust. The Members that are called Trustees in Trust as they are called Members in Society and Directors in Company.

Know more about Status and Registration Type/ Process of National NGO Registration

Trust is easy to Register, Run, Operate and Manage as an NGO

Trust is easy to register, manage and work for social development in all over India except Maharashtra. In other registration options and methods unnecessary clerical and official works are there to follow the process duration and after registration for Society and Company. To avoid the unwanted and unnecessary obstacles that are officially necessary and some are created by the Government officials and clerks, Trust is most recommended process to register as an NGO. Because Trust Registration is one time Registration only in the Sub Registrar office and after registration no further role and requirements from the concerned Registrar to run and manage Trust. It is very clear that you have to follow the official legal parameters for any process and there are many obstacles created by the clerks where rules and laws are silent at the ‘time’ and other many processes.

To register a Trust, some Property is to be mentioned in Trust Deed documents only, as it is required to mention it in the documents. According to Indian Trust Act it has to mention clause in the Trust that the transfer of property by the Founder for the benefit of beneficiaries. More clearly the Property can be Permanent Immovable like house or office building or the Movable Property that is Rupees. In rare cases the Immovable property is used by the wish of the Founders of Trust, it is not necessary to mention and include only the Immovable property. In most of the cases the certain amount in Rupees as Movable property is mentioned as the Property of the Trust. It is not a big issue but just a formality that we have to follow when to prepare Trust Deed as the initial Trust Property must be mentioned to include as a formal documentation preparation process. It is our work to include the amount in your Trust with your consent in the Trust Deed that is used and equal to the minimum saving Bank account.

Types of trusts : There mainly Two types of Trust one is Private Trust and Other is Public Trust. Private Trust is registered for the benefit of a particulate identified family and Charitable Trust is for public welfare purpose. Public Charitable Trust where beneficiaries are the general public or a large portion of it.

Public Charitable Trust and Religious Trust: Trust is further subdivided into Public charitable Trust and Public Religious Trust. The Public Charitable Trust is known as NGO. If you are going to Register an NGO as the Trust then the Public Charitable Trust is registered for that.

Religious Trust : In Religious Trust the work is managed by a Trust that is group of a certain Religious place or community. In most religious the fund is utilized for the development and maintenance of the Religious place or Temple. But in Public Charitable rust the property, resources and assets are used for the benefit of general masses.
(ii) Private trust where beneficiaries include individuals or families. A Private trust is further subdivided into Private specific trust/ Private Discretionary Trust (beneficiaries and shares both are pre-determined) and the one where either or both the beneficiaries and their shares are not determined. The Private Trust is different from the Public Charitable Trust as it is not related to public beneficiaries. The documentation and Trust Deed formats are different for Public Charitable Trust and Private Trust.

Trust Registration in Maharashtra

In Maharashtra Trust is registered under Maharashtra Trust Act. To register Trust in Maharashtra Trust Act is not as easy as to register Trust in other states of India under Indian Trust Act 1982. The Trust Registration is Maharashtra is registered under Maharashtra Trust Act, it takes too much time and there are unwanted and unnecessary process in the process of Trust Registration. Trust can be registered with atleast 3 persons and takes much time process. The society can be register in Maharashtra with minimum 7 members but in Society registration process there is less unwanted process and it takes less time in reintegration in comparison to Trust in Maharashtra.

To know more check and read Trust and Society Registration in Maharashtra

Trust Registration Process and Professional Consultancy

Trust Deed is the main document that can not be prepared as copy paste document because it can be useless if it is not well prepared and there are certain issues can be there at most parts even for Income Tax Exemption Registration or implement certain social welfare Objective or future plan to get funding.
Apart from the Private or Public Charitable Trust Deed issue there can be other lacunas in the preparation of the Public Trust Deed, while preparing the Trust the matter is used as copy from other format only. It matters most that how the Trust Deed that is Memorandum of Public Charitable Trust (NGO) is prepared. Trust Deed is useful only when it is prepared well and useless have have to rectify in when it is just prepared as copy paste matter without caring any future concerned and mission of the social entrepreneurs who wish to form it for social work with help of collecting funds. There are certain laws and rules are changed in previous years for the Social Welfare NGOs, so at the time preparation of Memorandum i.e. Deed of Trust it must be prepared according to new laws and according to the applicable parameters to get approval for Funding. The major change in the The Finance Act 2015 is about the definition of the “Charitable Purpose” is cleared. According to that clause: “charitable purpose” includes relief of the poor, education, yoga, medical relief, preservation of environment (including watersheds, forests and wildlife) and preservation of monuments or places or objects of artistic or historic interest, and the advancement of any other object of general public utility.

There are some other changes and available rules of the Finance Act that related to Tax exemptions, according to that the Trust Memorandum is prepared well. Some other current laws and rules are also applicable that must be including according as required.
There are some other issues that must or must not be part of the Trust. One of them is the business related clauses and others are the benefits and beneficiaries related clauses should be used as per the applicable laws and legal parameters so the unexpected obstacles can be avoided during management and to get funding to run it.
This is possible only when the Trust Deed is prepared well before registration. Trust Deed is basic and main document of the Public Charitable Trust (NGO). Professional Experienced Consultants know and understand it well and it is part of their regular work process. Due to some copy paste and lack of basic or depth knowledge, in the Trust Deed certain unwanted language and clauses related to the Private Trust are included so this type of Trust is registered as Private Trust only. When the functionaries of the Trust proceed for the funding and other work then it is cleared that the Trust is not Public Charitable Trust so it is not an NGO. In this case they have to proceed it again from beginning initial stage for the Public Charitable Trust. If you have such issue then you can contact us to take professional consulting services for the Trust Registration process. To avoid such issues you must consult with the well experienced consultants like us those are well aware about all the legal and funding related issues that related to Trust Deed.

You can check to know more more about entire Trust Registration Process.

How Chanakya will help you in Trust Registration:

Your trust will be created when you indicate with reasonable certainty (a) intention on your part to create a trust (b) purpose behind creation of the trust (c) target beneficiaries and (d) the trust-property amount. This entire process is legal and you need experts like Chanakya to help you out in such matters. Chanakya shall help in following ways:

  • We help you in choosing an appropriate name for your trust. This is an important step because if the proposed name suggests any kind of patronage by the Central or state Government then your application will be rejected straight away. Moreover, the proposed name should not be restricted under the provisions of Emblems and Names Act, 1950.
  • Preparing legal documents that establishes the Settler/ Author /Document Presenter and Trustees of the Trust.
  • We prepare Trust deed for your Trust. Trust deed is an extremely essential legal evidence of your Trust’s existence that contains various Clauses. Experts are required to prepare Trust Deed since it should contain various clauses like name clause, settler and trustee clause, registered office clause, object clause and beneficiaries, general (body) member clause. There is a Rules and Regulations section that contains special provisions about membership, subscription, meeting, governing body, auditor, legal procedures like appointment, removal or replacement of a trustee, their rights, duties and powers, etc. There is another section called the Bylaws of the Trust that contains all the information regarding sections of Income Tax act applicable, Indian Trust act, procedures and conditions to be followed to open and operate a bank account etc. Without these bylaws the trust deed is incomplete and useless. If you don’t have a proper trust deed you might face issues in future like proving your trust’s legibility.
  • We complete all the legal documents and Trust deed as required in the concerned registrar office of that respective state. You can relax and plan out future activities of your Trust after we get your registration done.
  • We can help to open Trust Account through providing the Resolutions that you have to pass in the meeting of the Board of Trustees and provide it to the bank authority at the time of opening account. Trusts can open saving or current bank accounts in nationalized scheduled banks.

Note: There is a certain registration fee determined by the Government that is valued according to the Revenue Tax rules of that particular state. It can be calculated at the time of the registration only and cannot be determined beforehand. Out of the calculated registration fee there is a minimum amount that has to be paid via a demand draft or stamp paper of that particular value right at the time of submission of documents. Rest can be paid later at the registrar office or to authorized associate revenue agency.