Trust Registration

A Trust is a closer system of a registered body that has limited membership. It can be either a family trust or a public trust. For a Trust, election of office-bearers is not compulsory.

Formation of the NGO as Trust
A Group of Individuals can deliver goods to society by forming public charitable trusts. The concept of trust generally involves endowment of some property for public utility under certain norms. At present the practice of establishing family or public charitable Trusts by sparing certain cash amount for charitable, welfare or religious purposes is prevalent. There are some differences between registered societies and a trust. The set up of the trust is not open having a tendency to keep its membership limited and form byelaws suiting to the needs of the trustees(not necessarily on democratic lines). Also there is very less interference of the authorities in its functioning.

Indian Trust Act, 1882 governs private or family trusts although various states have also enacted their own trust acts, for example The Maharashtra Trust Act; Bombay Public Trust Act, 1950 Punjab Trust Act; Bombay Public Trust Act, 1950; Madhya Pradesh Public Trust Act, 1951; Rajasthan Public Trust Act, 1959; etc. So, before registration of an NGO as trust, the provisions of applicable Trust Act should be studied by the promoters to suit their needs.

The Trust Deed is very important. The Trust Deed is made on non-judicial stamp papers, prescribed fee and signed by the trustee or trustees for submission to the Registrar concerned. In case of trust the registrar or sub-registrar having authority to register properties has the authority to register the Trust Deed. Hence, Trust Deed of the proposed Trust can be registered with Tehsildar or registrar properties and endowment at the district collectorate. In metropolitan cities separate offices of registrar of properties and endowments do function.

The Trust Deed should contain name(s) of the author(s), settler(s) of the trust; the name(s) of the trustee(s); the name(s) if any, of the beneficiary/ies or whether it shall be public at large; name of the trust; address of the trust; objects of the trust; procedure of appointment, removal or replacement of a trustee, their rights, duties and powers, etc; the mode and method of determination of the trust etc.

The Trust Deed in duplicate has to be submitted for registration along with proof of addresses of the author(s)/settler(s) /trustee(s) of the trust. The author(s)/settler(s) or all the trustees shall sign on all the pages of the Trust Deed before the registrar. If required then passport size photos of each of the signatory has to be pasted on the Trust Deed. The registrar will verify the credentials of the applicants and also check the proof of address, photographs, proof of the registered office etc. After all the formalities are completed, a nominal fee will be charged by the registrar (excluding the stamp duty). After making due marks and signature of the registrar, the original copy of the Trust Deed will be handed over to the authorized person.

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