Trust Registration: NGO registration procedure in India
According to Indian Trust Act, a trust may be created for various purposes like Public Charitable Trust & Religious Trust, all it count under NGO registration procedure in India. A Charitable Trust is one which has been created for the benefit of the public or of mankind. Charitable Trust may be created by a person who is of sound mind and no a minor. Any person who holds the property so dedicated shall hold it under trust and shall execute the purposes specified by the settler. The trust should get itself registered U/s.12A with the Commissioner of Income-tax within one year from the date on which the trust is created.
1. Identify a minimum of 2 Trustees and 1 Author
For Registering a Trust , minimum 2 persons are required .
Minimum 2 Trustees have to be there and anyone of them can become the author of the trust. Trustees could be individuals, Companies or LLPs. Trustees Registering Trust are usually known as founder Trustees.
2.Identify Trust Name and Location
Founder needs to identify and select the name of the Trust and they also need to decide upon the address for registered office of the Trust.
Trust Registered office need not be a commercial place. It can be residential address as well.
3.Execution of Trust Deed
A trust deed containing Objects and rules and regulations for operation of trust has to be drafted and executed by the author and the trustees
Trust deed is executed on requisite value of stamp paper as applicable to the state where Registered Office of the trust is situated.
4. Submission of Trust Registration documents to Jurisdictional Sub-Registrar
For submission of document physical presence of at least one trustee with original ID proof is required.
5.Trust Registration and Certificate
Except where the State Act is prevailing ,Trust Deed is registered under Registration of Documents Act 1908 and original Trust Deed is returned to trustee with all NRN Details Finished on of.
A. TRUSTEE MEANING?
Trustee is a person on firm that holds or administers property or assets for the benefit of a third party . A trustee m ay be appointed for a wide variety of purpose such as in the case of lankrutcy for a charity type a trust fund or for certain type of retirement plans or pensions .They are trusted to make decisions in the beneficiary least interests.
Rrefers to money donated to a charity with the provisions that the principal will not be spent , But the income from the principal or corpus will be used for the charity. Corpus fund denotes a permananet fund kept for the basic expenditure needed for the administration and survival of the organisation interest on corpus fund is to be used for the acuities of the NGO. 15 % is exempt by default. Balance 85% is exempt to the extent that it is used for charitable purpose.
Every person capable of holding property may be a beneficiary. A property may e a beneficiary or renounce his interest under the trust by disclaimer addressed to the trustee or by setting up with notice of the trust, A claim inconsistent there with.A person or corporation legally capable of taking and holding legal title to property can be a beneficially of a trust. Beneficiaries can be of two types.A. Fixed beneficiaries.B. Discretionary beneficiaries.
are non repayable funds disbursed by one party, often a government department , corporation, foundation or trust to a recipient often a non profit entity educational institution, business or an individual. A trust can apply for government grant funding and applying for a government grant requires much effort. A government grant can help the project get underway save time and improve chains by followings the proper procedures.
12A & 80G :
Income of an organisation is exempted if a NGO has 12A registration. All income shall not be taxable after 12A registration. This is one time registration. 80G: If an organisition has obtained certification under 80G then donors of that NGO can claim exemption from Income Tax. This is not one time registration and this needs to get renewed after validity period 12A AND 80G benefits available to a trust. Trust deed, Registration certificate, Trust Pan Card, ID Proof, Books of accounts e.t.c are required for registration U/S 12A and 80G to avail the benefit.
Using 80G the trust can raise local fund Registration Certificate of Trust/ Society 80G registration means donors can claim exemption.Valid Postal Address along with address proof(like electricitybill, warebill etc) and NOC from land lord. Evidence of welfare activities carried out. Books of accounts and ITR since inception