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Trust Registration

Indian Trusts Act, 1882 regulates and administers the private trusts in India, whereas the public trusts direct the functioning of public trusts except in the state of Maharashtra and Gujarat where public trusts are governed by Bombay Public Trusts Act, 1950. In public charitable trusts, the most important instrument is the trust deed, and it is important that aims and objectives of the trust should be specified in the trust deed. There is no upper limit for the trustees in a trust, but a minimum of two trustees are always required for trust registration. The trust deed should have provision concerning the management of the trust along with the procedure of appointing or removing the members. Public trusts after registration with the income tax can avail certain tax exemptions.

The cost mentioned above is for Delhi NCR jurisdiction, however it may change according to the circumstances.

. WHY Trust Registration .

Income Tax Exemption

Tax exemption is one of the significant benefits of NGO’s. Whether it’s Trust, Society, or Section 8 Company, every NGO is exempted from paying Income Tax.

No Stamp Duty Payable

In the case of NGOs, these are exempted from any stamp duty during the registration process of the company. they do not need to pay stamp duty on their bye laws.

Separate legal entity

An NGO has a separate legal entity from its members. It implies that the members are only responsible for the decision and action undertaken by them and not by the members.

Limited Liability

The liabilities of the members are limited to their amount of shares only due to feature of separate legal entity of Society. Personal account of member will not attache here.

Cost-effective

It’s easier to start an NGO when compared to others as there are many donors who have keen interest in supporting NGOs. Therefore, there won’t ever be lack of resources.

Easy to operate

Its quite easy to operate a Trust in India, Trust registration is easy procedure and also not required much post registration compliances as compare to other entity.

. DOCUMENTS .

For Applicant
  • Copy of Adhaar and PAN
  • Bank Statement or Utility bill
  • Office address proof
  • Mobile No. and Email Address
Other Information Required
  • Atleast 3 names of trust
  • Minimum and Maximum No. of trustee
  • Objective of Trust
  • Tenure of Trust
  • Trusts are governed by Relevant state trust act or Bombay Public Trusts Act.
  • 2 persons are required to form a trust with no upper limit.
  • Trust deed contains the aims and objectives of forming the trust and the mode of management of the trust.
  • Trust is set up by a trust deed on non-judicial stamp paper worth some percentage of the value of the trust property .
  • The composition of the board changes mainly by appointment and not election.
  • Alteration of the objects laid down in the trust deed is difficult and only the settler can modify them
  • The charities commissioner has more power to intervene in the affairs of a trust than in a society
. Work Process .

It became easy, just follow these steps to get your work done

Register Yourself
Put information about you and services
Select service & make payment
Make payment and get your
order id for tracking purpose
Submit documents
Submit all necessary document and info
Get your work done
Congratulations!
Service has been delivered.

. Frequently Asked Questions .

Ans:

Both trust and society can do social work as NGOs. The social work you do does not really get affected by whether you register the NGO as a society or as a trust. The main difference between trust and society lies in the controlling body of these two types of organizations.

Ans:

Trusts are usually registered at the office of sub-registrar of your area. This is the office where sale/purchase of land property are registered. Societies are registered at the office of the Registrar of Societies of your area. If you don’t have any clue about where to go for registration, I would suggest that you go to the office of sub-registrar / tehsildar etc. and inquire about where to register your NGO.

Ans:

No, you can start an NGO in a rented property as well. You will need a No Objection Certificate (NOC) from the owner of the rented property.

Ans:

80G is a certificate that you get from the Income Tax department. If an NGO has 80G certificate, then the donors of that NGO will get some tax benefit on the donation amount. Some NGOs are allowed to give 100% tax benefit but most of them are eligible for tax benefit on 50% of donation amount.

Ans:

If you have 12A exemption certificate from the Income Tax Department, then all the donations you collect for your NGO will remain tax-free. If you do not have this certificate, then you will have to pay income tax on all the donations you are getting. So, it is very important to get 12A certificate.

Ans:

If you provide all the documents and the Income Tax department is satisfied, they will give you an 80G certificate with lifetime validity. Earlier the 80G certificate needed to be renewed every three years.