One of the main benefits of running a non-profit organization is that you have an opportunity to serve the community via funds and volunteer work. It’s also an opportunity to solve an issue, which is not good for the community.
NGO / Trust is registered under the state laws, wherein Section 8 company is registered with the Ministry of Corporate Affairs. NGO / Trust is recommended for the small charitable activities.
A Trust is a closer system of a registered body with limited membership.
Trust can be a family trust or a public trust. Generally, Trusts are created by offering some property to a charitable purpose. However, some cash fund might also be spared by the trust or trustees for charitable purpose while forming a trust.
Different states in India have different Trusts Acts in force, which govern the trusts in the state; in case if there is an absence of a Trusts Act in any particular state or territory, the general principles of the Indian Trusts Act 1882 are applied.
The main instrument of any charitable trust is the trust deed, wherein the aims, objects and mode of management should be clearly present.
In every trust deed, the maximum and minimum number of trustees has to be itemized. The trust deed should be signed by both the settlor/s and trustee/s in the presence of two local witnesses.
The trust deed should be executed on non-judicial stamp paper and the value would depend on the valuation of the trust property.
A trust needs a minimum of two trustees, there is no upper limit to the number of trustees.
Easy Management: - The Board of directors / Trustees’ members of a Trust can be easily changed by filing simple forms.
Cost of registration: - Cost of registering trust is very low in comparison to section 8 company.
Annual Return: - There is no requirement of annual return filing
Govt Benefits: - A Registered Trust deed becomes an official shape of an NGO which carries support and recognition of law. In the case of a charitable or religious trust, For Availing benefits under Section 11 of the Income Tax in the case of immovable property registration, it is essential that the instrument of trust is duly registered.
Next step is to understand various other implications.
Various Government benefits
Trust / NGO gets huge tax benefits
There is no requirement of annual return filing
From the point of view of foreign contribution, Trusts are less preferred
Change of registered office is difficult
Minimum 2 trustees
There is no requirement of annual return filing.
If NGO / Trust registration benefits & Liabilities satisfy your charitable purpose, then NGO / Trust registration might best suit your needs.
1. Fill out basic requirement form
2. We'll collect all your documents and file them directly with the authority
3. You'll receive your completed NGO / Trust package by an E-mail
Voter's ID/Aadhar Card/Passport/Driver's License
Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
Passport-sized photograph of all Directors
For Proposed Registered office (Residential or commercial)
Any Utility bills
Scan copy of Rent agreement with NOC from owner
Minimum of 2 trustees
Proof of business
Industry average is up to 15 days but we have a track record of completing within 8-10 business days unless critical things happen in between the process.
No, GST registration is not mandatory
Any premises be it a commercial / industrial / residential where communication will be received.
Yes, you need to be present.