Trust / Society Registration

Trust / Society Registration
(Price Start at $ 200 /-)

In India, there are several types of organisations that work with the aim of promoting charitable purposes, social welfare, social development etc. rather than horseheadedly focusing towards making a profit. Two such organisations are trusts and societies. While both offer their own set of advantages and disadvantages, irrespective of what’s chosen, the first step in the journey of establishing a trust/society is its registration. 

Trusts in India are governed by the Indian Trust Act, of 1881, while societies are governed by the Societies Registration Act of 1860. Both trusts, as well as societies in India, are registered as a Non-Governmental Organisation (NGO) or Non-Profit Organisation. Despite both trusts as well as societies being charitable organisations, their basic characteristics are distinct. Trusts are formed by an agreement whereby a party holds the ownership of a property/asset on behalf of another party, for the benefit of a third party that is called the beneficiary. On the other hand, a society is a collection/assemblage of individuals that come together for a common charitable/welfare purpose. However, to establish a trust/society is essential to duly register the same as per the procedures laid down in the statutes governing the trust/society. While the process of trust/society registration might sound simple, in reality, the same is dependent on a plethora of documentation and procedures that need to be followed. This is why it makes complete sense to hire a professional service provider for trust/society registration.

What are the eligibility criteria to register a trust/society?

The first step towards trust/society registration is to ensure all eligibility criteria are fulfilled. The same are enumerated below:

Trusts

  • A minimum of two individuals that are major, of sound mind, and not disqualified by law. Individuals also include associations of persons, companies and HUF.
  • A clear, specific and lawful purpose that is not forbidden by law
  • A specific trust property movable or immovable
  • A written and registered trust deed

Society 

  • A minimum of seven members
  • A common charitable/other purpose as mentioned in section 20 of the Societies Registration Act of 1860
  • All members shall be major, of sound mind, and not disqualified by law.

What are the documents required to register a trust/society?

The document required for the registration of a trust/society is as follows:

Trusts

  • PAN card of trustees and trustors
  • ID proof of trustees and trustors
  • Photographs of trustees and trustors
  • Address Proof of trustees and trustors
  • Trust property documents
  • Stamped trust deed
Society 
  • PAN card of all members
  • Residence Proof of all members
  • The Memorandum of Association specifies work, objective, registered address, member details etc.
  • Proof of ownership of registered address
  • A copy of the rules and regulations of the society signed by all members
  • Registration application

What is the procedure to follow to register a trust/society?

The procedure for registration of a trust/society is as follows:

Finalise Name/Trust Requirements: The first step towards registering a trust/society is to decide upon a suitable name. A good name aligns with the values of the society/trust and also complies with the provisions of intellectual property laws. In the case of trust, in addition to the name, it is also important to finalise the trustee, trustor, settler etc.

Prepare Memorandum of Association/ Trust Deed: The second step is to prepare a memorandum of association (in the case of a society) along with the rules and regulations of the society. While the MoA describes the main objective of the society, the rules define the management of the internal affairs of the society such as the powers and responsibilities of the official positions, quorum of meetings etc. In the case of a trust, the preparation of a Trust Deed is a crucial step towards trust registration. The trust deed must be concise, well-drafted and duly stamped. It is advisable to hire professional legal services to draft the trust deed.

Application to the Registrar: In the case of a society, after the drafting of the MoA and Rules and Regulations, an application is submitted to the Registrar of Society with signed MoA and Rules and all required affidavits and KYC documents of all the members and officials of the society. In the case of a trust, once the trust deed is created, it must be submitted to the Registrar along with all necessary documents. The trustor, trustee and beneficiaries will also be involved in this process.

Issuance of Certificate of Society Registration/Trust Registration: Once all documents are submitted to the registrar, the registrar who after going through all submitted documents will issue a certificate of registration which will be the last and final step of society/trust registration. Usually, it takes nearly a month to complete the process of Society Registration in India.

What are the advantages of trust/society registration?

The advantages of trust/society registration are as follows:

Charitable Involvement: Setting up a registered trust/society enables individuals to push forward their beneficial, charitable purpose in an organised, legal and efficient manner.

Tax Exemptions: Registering a society trust in India comes with various tax exemption benefits as provided by the income tax statutes. 

Legal Identity and Protection: Registration of societies/trusts gives legal identity to the trust/society enabling them to initiate independent legal action and also subjects them to various legal protection.

How can Seedling help your startup with trust/society registration?

Our tailored trust/society registration services are designed to evolve the way your firm handles its trust/society registration strategy. Our expert team of professionals blends the use of modern software with in-depth compliance and regulatory expertise to provide you with services that can help you sail through the trust/society registration processes. At Seedling, we ensure that each trust/society registration process is made completely hassle-free and is dealt with with utmost care, caution, and transparency. With this, we ensure to offer accurate, compliant, efficient, on-time and watertight trust/society registration services. We strive to streamline the entire process of trust/society registration which can help businesses save time and human resources. Partnering with Seedling is more than just a collaboration. It is an advantage that can help you scale your business.

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