What is the procedure for trust registration?

Non-Government Organizations, NGO are those entities which work for charitable purposes without an aim for any profits for self. In India, NGOs can be registered as any of the following:

1.     Trust under Indian Trusts Act, 1882

2. Society under Societies Registration Act 1860
3. Section 8 Company under Companies Act, 2013

An NGO can be formed as a Public Trust (charitable trust) for the benefit of the general public with a specific objective that can be related to education, health, sanitation, eradication of poverty etc.  It is different from the formation of a Private Trust where a particular group of individuals, a family or a specific class of people becomes the beneficiaries to the trust.

What are the guidelines for a Trust Registration?

A)     “Any person who is competent to contract under the applicable laws or has the power to transfer the property that is transferable can create a trust.” A Trust like all the organizations is required to be registered. Trust Registration is a fairly easy process.

B)    Before starting the process of NGO Registration, few details are required  to be in place:

a.      Name for the trust

b.     A Registered Address for the trust

c.      Objects of the trust which must be for the good of the public at large.

d.     Two trustees of the trust

e.      One settler of the trust

f.        Property of the trust which may be movable or immovable.

g.      Funds that shall be accepted: donations, grants, contributions etc

C)    Next step is to draft a Trust Deed which shall mention the details as discussed above. Apart from those, the Trust deed shall also mention following

a.       Powers with the trustees.

b.      Bank details of the Trust

c.       The procedure in event of dissolution/ winding up

d.      May provide for the procedure of amalgamation with another NGO

e.       A clause for Accounts and Audits of the Trust

The Trust Deed must be printed on stamp paper of requisite value as per the State.

The Trust Deed must be accompanied by one (1) passport size photograph & a copy of identity proof of each of the trustees, settler and the witnesses.

D)   The Trust deed shall then be registered in accordance with the Indian Trust Act of 1882 with the local registrar of the state. Along with the Trust Deed, two (2) copies of the Trust Deed signed by the settler on all the pages have to be submitted.
For the registration, the trustees, settler and the witnesses must be present at the Registrar office along with their identity proof in the original.

E)    The registrar shall scrutinize the documents, the deed for all the required details and all the documents. Upon his satisfaction, the Registrar shall enter the details in the official record, keep one copy of the trust deed for the record and return the original Trust deed to the applicants.

F)    The Trust Registration Process is now complete and the Public Trust can now be operated in accordance with the Trust Act. The Public Trust is now ready to be operating as a Non-Governmental Organization for charitable purposes.

Source url - https://enterslice1.wordpress.com/2018/07/31/what-is-the-procedure-for-trust-registration