Many people wish to do social service by opening an NGO. Setting an NGO is not an easy task. But however, if you are determined and keep in mind few instructions it is very much possible. NGOs work for the promotion of certain causes or for the welfare of a targeted population. There are certain rules and regulations given by the government, that are to be followed, to form an organization. NGOs are the nonprofit organization. You need to register the NGO first. This can be done in one of the following ways:
- Section 25 company
How can you register a trust NGO?
Trust NGO can be of two types:
a) Private trust
b) Public charitable trust.
Private trust is used for private purposes and is not given tax benefits by the Indian Government. This type of trust is controlled by the Indian Trusts Act (1882). Public charitable trust is established to do charity for public. There is no national level law to govern such trust.
To register a trust NGO one must keep in mind the following points:
I. Your desired trust should be registered using a document called Trust Deed. This document will have all the detail information about your trust and has to be printed, written or typed on plain A4 size paper. Along with this, you have to also attach Rs. 100 Non-judicial stamp paper. These papers should have a signature as well as thumb impression of all the witnesses and trustees.
II. If the place where you wish to start the registered office of your trust is yours, then you do not need to worry but if the owner of the property is someone else then you must have No Objection Certificate (NOC) from the owner.
III. In the Trust Deed document, you should mention the following elements:
a. Name and address of the person who is setting up the trust
b. Name and addresses of other trustees of the organization
c. Your desired name of the trust
d. The minimum and a maximum number of trustees your trust can have
e. Address of the trusts office
f. Objectives of your trust
g. Rules and regulation of the trust
IV. You need minimum two people to register a trust; one is the settler and one more person. You can decide the maximum number of the trustees and this number is to be mentioned in the deed document. All the trustees are called the board of trustees and will have to govern the NGO.
V. All or some members of the trust can belong to the same family.
VI. Trusts are allowed to work on the national level.
VII. Trusts cannot be wound up.
VIII. There is no electoral procedure involved in choosing the trustees of the trust. The members mentioned in Deed document are life long members of the trust.
IX. Trustees can have various designations.
X. Trustees cannot distribute the profit earned by the trust among themselves.
XI. One must clearly mention the objective of their trust. The more clearly you write about it, better it will be for you to work.
XII. Trustees can take compensation of the services that the trust provide. But they cannot draw any remuneration.
XIII. When the registration is to be done, the settler and two witnesses should be present in front of the sub-registrar. IDs of all these people will be checked by him. Then the deed document will be passed on to the counter where data entry will occur. Hereafter, all the three persons will be photographed. You will be asked to pay Rs. 1100 out of which Rs. 100 will be the fee for registration and Rs. 1000 will be charged for keeping the copy of deed document with the sub-registrar.
XIV. Finally, you can collect the certified copy of the trust deed after about a week from the registrar office.
What more you should remember while registering your trust?
- To get the facility of tax exemption on the income of the trust, you should get a certificate from the Income Tax Department. This certificate is known as u/s 12A.
- If someone donates money to public charitable trust then the donor gets tax exemption on the amount he pays. To get this facility you should acquire 80G certificate from Income Tax Department.
- For registering a trust, lawyer and practicing CA can help you. But taking help of the lawyer is always better as CA is not aware of minute legal details.
- In case you can write your own trust deed then, you only need a notary. He will take you to the registrar and present your trust deed.
- For obtaining 12A and 80G certificates you need a help of practicing CA.
Keep in mind the above points and register your trust and start doing good deeds.
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