Trust Registration (India)

A trust is an arrangement where one party (the trustor) transfers property or assets to another party (the trustee) for the benefit of a third party (the beneficiary). Trusts are typically created for charitable, religious, or philanthropic purposes and are governed by the Indian Trusts Act, 1882 for private trusts and state-specific laws for public trusts.

Types of Trusts

1. Private Trust: Established for the benefit of specific individuals or groups.
2. Public Trust: Established for the benefit of the public at large, often for charitable or religious purposes.

Steps to Register a Trust

1. Draft the Trust Deed
• The Trust Deed is the most critical document and includes:
• Name of the Trust: Choose a unique and meaningful name.
• Submit the name for approval through the RUN (Reserve Unique Name) service on the Ministry of Corporate Affairs (MCA) portal.
2. Obtain Digital Signature Certificates (DSC)
• Digital signatures are required for all directors for filing forms online.
• Apply for DSCs through authorized agencies.
3. Apply for Director Identification Numbers (DIN)
• Directors must obtain DIN by filing SPICe+ Form or DIR-3 Form.
4. Draft Memorandum and Articles of Association
• Memorandum of Association (MOA): Specifies the objectives of the company.
• Articles of Association (AOA): Defines rules and regulations for the company’s operations.
• Include details about members, directors, and governance structure.
5. File Incorporation Application

File the incorporation application using the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) form.

Attach required documents:

• MOA and AOA
• ID and address proof of directors and members
• Address proof of the registered office (rent agreement, utility bill, etc.)
• Declaration by directors and members in Form INC-14 and INC-15 affirming compliance with Section 8 requirements.
6. Apply for a License

Submit Form INC-12 to obtain a license to operate as a Section 8 Company.

Attach supporting documents like MOA, AOA, and a declaration of compliance.

The Registrar of Companies (RoC) will review the application and issue the license.

7. Obtain Certificate of Incorporation

Once approved, the RoC issues the Certificate of Incorporation along with the Company Identification Number (CIN).

8. 8. PAN and TAN Application

Apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the company during incorporation or separately.

Benefits of a Section 8 Company

3. Limited Liability: Directors’ personal assets are protected.
4. Separate Legal Entity: The organization is distinct from its members.
5. Tax Benefits: Eligible for tax exemptions under 12A and 80G.
6. Credibility: Recognized as a corporate entity, attracting donors and grants.
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