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India has a rich tradition of charitable giving and philanthropy. Furthermore, India is home to a vast network of NGOs, Trusts, and Societies that work tirelessly to address various social, economic, and environmental issues. These organisations range from small grassroots initiatives to large national and international organisations, and their activities cover a wide range of sectors, including education, healthcare, poverty alleviation, women's rights, child welfare, and environmental conservation. Many of these organisations are driven by passionate volunteers who dedicate their time, skills, and resources to bring about positive change in their communities. Despite facing numerous challenges, Indian NGOs, Trusts, and Societies have made significant contributions to improving the lives of millions of people across the country.In this article, we will explore the process of NGO registration, Societies and Trust registration in India and the services offered by SV Associates for trust registration.
In India, an NGO (non-governmental organisation) is a voluntary organisation that is independent of the government and operates for a social cause. A trust is a legal entity that is created to hold property or assets for the benefit of a particular group of people or for a social cause. A society is a membership-based organisation that is created to promote a particular social cause or provide a benefit to a particular group of people.
While all three entities have a similar purpose of working towards a social cause, there are some differences in their legal structure, registration process, and governance. NGOs are generally registered under the Societies Registration Act or the Indian Trusts Act, while trusts are registered under the Indian Trusts Act, and societies are registered under the Societies Registration Act. Though collectively, Trusts, Societies and all Section-8 Companies fall under the umbrella of NGOs.
Trusts are usually created by a legal document called a trust deed, which outlines the objectives and governance structure of the trust. Societies are governed by a managing committee or governing body elected by its members, while NGOs may have a board of trustees or a managing committee. Trusts and societies may also have more restrictions on the use of their funds and assets, while NGOs are generally more flexible in their use of funds.
The process of trust registration in India can be quite complex and time-consuming. Here are the steps involved in the process:
Choose a name for the trust: The first step in the process is to choose a name for the trust. The name should be unique and should not be similar to the name of any other trust or organisation.
Prepare the trust deed: The next step is to prepare the trust deed. The trust deed is a legal document that outlines the objectives of the trust, the powers and duties of the trustees, and the rights and responsibilities of the beneficiaries. The trust deed should be drafted by a lawyer and should be signed by the settlor and the trustees.
Get the trust deed notarized: Once the trust deed is prepared, it needs to be notarized by a notary public.
Get the trust deed stamped: The trust deed needs to be stamped as per the Stamp Act of the state where the trust is located. The stamp duty varies from state to state.
Register the trust: Once the trust deed is notarized and stamped, it needs to be registered with the office of the sub-registrar of the area where the trust is located. The following documents need to be submitted for registration:
a) The original trust deed b) Two photocopies of the trust deed c) Identity proof of the settlor and the trustees d) Address proof of the settlor and the trustees e) Two passport-size photographs of each trustee f) Registration fee .
Obtain the trust PAN card: After the trust is registered, it needs to obtain a PAN card from the Income Tax Department. The PAN card is required for opening a bank account, filing tax returns, and receiving donations.
Open a bank account: The final step is to open a bank account in the name of the trust. The bank account should be opened with a bank that is authorised to handle the accounts of trusts.
The society registration process in India involves the following steps:
Step 1: Choosing a Name for the SocietyThe first step in the society registration process is to choose a name for the society. The name should not be similar to the name of any other registered society or trademarked name.
Step 2: Preparing the Memorandum of Association (MOA) and Rules & Regulations (By-Laws) The Memorandum of Association (MOA) and Rules & Regulations (By-Laws) of the society should be drafted in accordance with the Societies Registration Act, 1860. The MOA should contain the objectives of the society, while the Rules & Regulations should contain the operational details, membership criteria, and other important information.
Step 3: Getting the MOA and Rules & Regulations Signed by the Members The MOA and Rules & Regulations should be signed by all the founding members of the society in the presence of a witness.
Step 4: Getting the MOA and Rules & Regulations Notarized The MOA and Rules & Regulations should be notarized by a notary public.
Step 5: Submitting the Application for Society Registration The application for society registration should be submitted to the Registrar of Societies in the district where the society will be registered. The application should be accompanied by the following documents: 1. Memorandum of Association (MOA) and Rules & Regulations (By-Laws) 2. Declaration by the members of the society 3. Address proof of the registered office 4. List of members with their names, addresses, and signatures 5. Consent letters of the members to become a member of the society 6. Identity proof of the members 7. NOC from the owner of the registered office 8. Affidavit from the president or secretary of the society
Step 6: Verification and Inspection by the Registrar of Societies The Registrar of Societies will verify the application and documents submitted by the society. The Registrar may also conduct an inspection of the registered office of the society.
Step 7: Issuance of Registration Certificate If the Registrar is satisfied with the application and documents submitted by the society, a registration certificate will be issued. The registration certificate contains the name of the society, its objectives, and the names of the members.
To register as a section 8 company, the following steps are involved:
Step 1: Drafting of the Memorandum of Association and the Articles of Association, which should contain the objectives of the company, the rules governing the management of the company, and the details of the directors.
Step 2: Obtaining a Digital Signature Certificate (DSC) and Director Identification Number (DIN) for the directors.
Step 3: Gather the required documents, including proof of identity and address of the founders, the registered office address, and the property that will be held in trust.
Step 4: Payment of the registration fees.
Step 5: Filing the registration application with the Registrar of Companies in the state where the company intends to operate.
Step 6: Verification and scrutiny of the documents by the Registrar of Companies.
Step 7: Registration of the company and issuance of the registration certificate.
Whether it be NGO registration,Trust registration or Society registration, it can be a complex and time-consuming process. That is where we step-in and offer services to simplify the process and make it more efficient. Here are some of the services that SV Associates offer for NGO,Trust and Society registration in India:
Pre-registration consultation SV Associates provides pre-registration consultation services to help NGOs understand the legal requirements and procedures for registration. They offer guidance on the type of organisation that would be most suitable for the NGO and the documentation required for registration.
Drafting NGO/Trust Deed/Society MemorandumDonors who donate to a non-profit organisation with an 80G certification can claim tax exemption on their donations under section 80G of the Income Tax Act. This helps in encouraging more donations to non-profit organisations and also helps in building trust among donors.
Document SubmissionAfter the trust deed/society memorandum is prepared, the next step is to submit the necessary documents to the Registrar of Societies/Registrar of Trusts. We offer the service of document submission. Our team will collect all the necessary documents and submit them to the Registrar of Societies/Registrar of Trusts.
Verification Once the documents are submitted, the Registrar of Societies/Registrar of Trusts will verify the documents and conduct an inspection of the property where the trust/society will be located. We offer the service of verification. Our team will work with the NGO/trust to ensure that all the necessary documents are in place and will assist with the inspection process.
Legal Compliance After the registration process is complete, NGOs/trusts must comply with various legal requirements, such as filing annual returns and maintaining proper accounts. SV Associates offer the service of legal compliance. We will work with the NGO/trust to ensure that all the necessary legal requirements are met.
Trust deed drafting Our team can help in drafting the trust deed. They can provide legal expertise and ensure that the trust deed is drafted in accordance with the laws and regulations of the state where the trust is located.
Registration Our team assists in registering the trust with the sub-registrar's office. They can handle the paperwork and submission of documents, and can also provide guidance on the registration fee.
Bank account opening We also assist in opening a bank account for the trust. Alongside, we provide guidance on the documentation required and can liaise with the bank on behalf of the trust.
Annual compliance Registered trusts are required to comply with various legal and regulatory requirements, such as filing annual tax returns and maintaining proper accounts. Our team provides assistance in meeting these compliance requirements.
Follow-up and Liaison SV Associates follows up with the authorities on behalf of the NGO to ensure that the registration process is expedited. They also provide liaison services to facilitate communication between the NGO and the authorities.
Post-registration compliance SV Associates provides post-registration compliance services to ensure that the NGO complies with all the legal requirements after registration. This includes assistance with obtaining tax exemptions, filing of annual returns, and maintenance of records and accounts
Registration of NGOs (non-governmental organisations) is an important legal requirement in India as it provides them with a legal identity and recognition as a separate legal entity. Here are some key reasons why NGO registration is important in India:
Legitimacy: Registration gives legitimacy to an NGO and helps establish its credibility and trustworthiness with donors, government agencies, and other stakeholders. This can increase the NGO's visibility and effectiveness in carrying out its mission.
Tax benefits: Registered NGOs are eligible for tax exemptions under Section 12A and 80G of the Income Tax Act, which can help them save money and channel more resources towards their social objectives. .
Eligibility for funding: Many government and private funding agencies require NGOs to be registered before they can apply for grants and funding. Being registered can also help NGOs access other sources of funding, such as corporate social responsibility (CSR) funds.
Better governance: Registration typically requires NGOs to have a clear structure and governance mechanism in place, which can help ensure transparency and accountability in their operations.
BLegal protection: Registered NGOs enjoy legal protection under the law, which can help protect them from legal disputes and other legal issues that may arise.
Trust registration is an essential process for any organisation or individual who wants to set up a trust in India. A trust is a legal entity that is created for the purpose of holding and managing assets, usually for the benefit of a specific group of people or a particular cause. In India, trusts are an important vehicle for philanthropy and charitable work, and they play a significant role in the country's social and economic development. Here are some of the reasons why trust registration is important in India:
Legal recognition: Trust registration provides legal recognition to the trust as a separate legal entity. This means that the trust can own property, enter into contracts, and sue and be sued in its own name. Without registration, a trust does not have legal status, and its activities may be considered illegal or invalid.
Tax benefits: Registered trusts are eligible for various tax benefits under Indian law. For example, donations made to a registered trust are eligible for tax exemptions under Section 80G of the Income Tax Act, which encourages individuals and companies to donate to charitable causes. Registered trusts are also exempt from income tax, subject to certain conditions. .
Credibility: Trust registration gives the trust credibility and legitimacy in the eyes of donors, beneficiaries, and other stakeholders. Registered trusts are subject to certain legal and regulatory requirements, such as maintaining proper accounts and filing annual tax returns, which help to ensure transparency and accountability in the trust's activities.
Limited liability: Trust registration provides limited liability protection to the trustees of the trust. This means that the trustees are not personally liable for the debts or obligations of the trust, except in cases of fraud or mismanagement. Limited liability protection encourages individuals to become trustees of trusts and allows them to participate in philanthropic activities without fear of personal financial liability.
Expertise and Experience: SV Associates specialises in trust registration services and has all the expertise and experience in the process of trust registration. We are familiar with the legal requirements, documentation, and procedures involved in trust registration and can guide you through the process smoothly.
Time and Cost Efficiency: Trust registration can be a time-consuming and complex process. By engaging with us, you can save time and avoid the hassle of dealing with multiple government agencies and paperwork. Our services are also cost-efficient, as we help you navigate the process while minimising expenses.
Customised Solutions: We also offer customised solutions based on your specific needs and requirements. We can help you choose the appropriate type of trust, draft a trust deed that meets your objectives, and provide advice on compliance and governance matters.
Risk Mitigation: Engaging a trustable company like ours can help mitigate risks associated with trust registration. We ensure that all legal and regulatory requirements are met, reducing the risk of non-compliance, legal disputes, or tax liabilities.
Confidentiality: We are bound by confidentiality agreements, ensuring that your sensitive information and documents are protected. This can be especially important for trusts that deal with sensitive issues or have a high public profile.
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