People found that they cannot be approaching the government elected by them for all the support and help to society, they organized themselves to form entities in name of Trust and Non-Profitable or Non-Government organizations. The formation and functioning of these entities have to abide by local laws and registered as per various laws including Indian Trust Act 1882, Companies Act 2013.
What is the Trust Registration?Trust is registered and managed by the act of the Indian trust. It is also a financial vehicle that transfers property from its creditors to a lawful purpose of the trust. AN NGO can be started under different acts like Indian Societies Act, Indian Trust Act, and the Companies Act. There are commonly 5 types of registered trust and 6 types of NGOs
Commonly Registered types of TrustWhile trust is an arrangement which gives trustees to hold the properties of the assets on behalf of the beneficiary/beneficiaries below are common types of the trusts which are registered in India.
Created for financial and Tax benefit of Individuals/Beneficiaries of a family and not public, usually closely ended.
Created for a purpose or common cause involving general public and trustees are held accountable for act of the trust and its assets, classified further as follows.
As the name suggests it’s formed for maintenance of assets related to a particular religious entity.
Formed for purpose of charity with purpose of education, medical assistance, help to poor people and also any other activities involving public interest.
A special type of trust/NGO which is formed for promotion of science, sports, research, social welfare, education, art etc which is licensed as per Section 8 of Companies act 2013. This is most preferred type of entity registered due to its various advantages which include freedom in choosing the name, book keeping of accounts, minimum share capital etc.
The best way through which you can register an organization of Non-Government is by incorporating trust and recording them. It is used by NGO’s who provide education, medical relief, and eradicating poverty.
Select a Name which depicts the purpose of formation and check its availability. Create an objective and mission of the entity to be formed.
Prepare the MOA, AOA which explicitly the detail terms and conditions underlying. Trust Deed preparation with its Parties, Settler, Beneficiaries and Trustees details.
Apply for your statutory certificates and mandatory registration numbers including PAN and TAN. A trust deed is one type of document that needs mandatory registration before the trusted registrar have jurisdiction.
