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Trust

Get your Trust, Society or Section 8 Company registered in India

    Trust, Society, Section 8 Companies

    Trust, Society and Section 8 companies all are collectively referred as NGOs (Non-Government Organizations) of NPOs (Non-Profit Organizations). The primary objective behind their formation is social development and development.

    In spite of being same in motive, they are slightly different from each other:
    PARTICULARS TRUST SOCIETY SECTION 8 COMPANY
    Meaning
    It is an agreement between parties, whereby one party holds the ownership of property for the benefit of another party.
    It is a collection of persons, who come together for initiating any literary, scientific or charitable purpose.
    It is an enterprise formed with a commercial, social, charitable or any other such objective and intends to apply its profits for promoting such objectives.
    Registration
    As NGO/ NPO.
    As NGO/ NPO.
    As NGO/ NPO, enjoying the privileges of a limited company but without using the words “Limited” or “Private Limited” in its name.
    Governing law
    The Indian Trusts Act, 1882 for Private Trusts & general law for Public Trusts except states like Gujarat, Maharashtra having separate public trust acts.
    The Societies Registration Act, 1860.
    The Companies Act, 2013.
    Registering authority
    Deputy Registrar of the relevant area.
    Registrar or Deputy Registrar of Societies of the State.
    Registrar of Companies (ROC) or Regional Director.
    No. of minimum members required at the time of registration
    Minimum 2 trustees.
    Minimum 7 members.
    Minimum 2 directors and shareholders. Same person can be director and shareholder.
    Main document supporting the formation
    Trust deed.
    Memorandum of Association and Rules & Regulations.
    Memorandum of Association and Articles of association.
    Annual compliance requirement
    There are some annual compliance requirements depending on whether the trust is Private trust or Public Trust.
    Annual filing of list of names, addresses and occupations of members of the Managing Committee of the society, with the Registrar of Societies.
    Annual compliance of filing of accounts and filing of annual return of Section 8 company, with the Registrar of Companies (ROC).

    It is very important for Trusts, Societies and Section 8 Companies to take registration U/s 12A of the Income Tax Act ‘1961 in order to claim exemption under Income Tax Act.

    Steps for registration U/s 12A:

    1. File an application for registration U/s 12A by submitting Form 10A to the jurisdictional Principal Commissioner or commissioner of Income Tax (exemptions).
    2. The Principal Commissioner or Commissioner, on receipt of an application for registration of a trust or institution shall
    • a. call for such documents or information from the trust or institution as he thinks necessary in order to satisfy himself about
    • (i) The genuineness of activities of the trust or institution; and
    • (ii) The compliance of such requirements of any other law for the time being in force by the trust or institution as is material for the purpose of achieving its objects
    and may also make such inquiries as he may deem necessary in this behalf.
    • 3.&nbsp After satisfying himself about the objects of the trust or institution and the genuineness of its activities and compliance of the requirements he
    • a.&nbsp shall pass an order in writing registering the trust or institution
    • b.&nbsp shall, if he is not so satisfied, pass an order in writing refusing to register the trust or institution

    and a copy of such order shall be sent to the applicant

    • Note 1: &nbsp&nbspno order shall be passed unless the applicant has been given a reasonable opportunity of being heard.
      Note 2: &nbsp&nbspThe Principal Commissioner or Commissioner must pass the order within 6 months from the end of the month in which application was received. Non-disposal of an application for registration before the expiry of six months as provided u/s 12AA (2) results in deemed grant of registration

    Documents required for registration U/s 12AA:

    1. Self-certified copy of Trust Deed or Instrument, where the trust is created under an instrument.
    2. Self- certified copy of the document evidencing the creation of the trust, where the trust is created, otherwise than under an instrument.
    3. Self-certified copy of registration with Registrar of Companies (RoC) or Registrar of Firms and Societies or Registrar of Public Trusts.
    4. Self-certified copy of the documents evidencing adoption or modification of the objects, if any;
    5. Where the trust has been in existence for during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of the trust relating to such prior year or years (but not more than 3 years immediately preceding the year).
    6. Note on the activities of the trust or institution.
    7. Self-certified copy of the existing order granting registration under section 12A or section 12AA, if any.