1. FORMS OF ORGANISATION
A non governmental organization (NGO) may be formed and registered as-
i. Trust: As a public charitable trust. A public trust, whether relating to movable or immovable property, may be created by mere delivery of possession with a direction that the property is to be held under trust. However, a written instrument of trust signed by the author and registered, is always desirable.
ii. Society: Section 20 of the Societies Registration Act lays down that charitable societies and societies established for the promotion of science, literature of the fine arts may be registered under that Act. A society registered under the said Act is a legal entity apart from its members and under section 6 of the said Act, it can sue or be sued in the name of its President, Chairman, Secretary or members of the governing body or Trustees. In Secretary of State India v. Radha Swami Satsangh it was held by the Bombay High Court that the registration of a charity under the Societies Registration Act 1860 was a prima facie evidence of valid dedication of property for charitable purposes.
iii. Company: An association may be registered under Section 8 of the Companies Act, 1013 if the Central Government is satisfied that it is about to be formed as a limited company for promoting commerce, are, science, religion, charity or any other useful object and it intends to apply its profits, if any, or other income in promoting its objects and to prohibit the payment of any dividend to its members. In such cases the Central Government may by license direct that the association may registered as a company with limited liability without the addition to its name of the word “Limited” or the words “Private Limited”.
2. PROCESS OF REGISTRAION OF TRUST
1. Before you register your trust you will need to decide the following:
a) Name of the trust
b) Address of the trust
c) Objects of the trust(charitable or Religious)
d) One settler of the trust
e) Two trustees of the trust
f) Property of the trust-movable or immovable property (normally a small amount of cash/cheque is given to be the initial property of the trust, in order to save on the stamp duty).
2. Prepare a Trust Deed on stamp paper of the requisite value (8% of the
value of property of the trust in Delhi. The rate varies from state to state)
3. Requirement for registration of Trust Deed with the Local Registrar under
the Indian Trusts Act, 1882:
a) Trust Deed on stamp paper of requisite value (as stated on point no.2 above)
b) One passport size photograph & copy of the proof of identity of the settler
c) One passport size photograph & copy of the proof of identity of each of the two trustees.
d) One passport size photograph & copy of the proof of identity of each of the two witnesses.
e) Signature of settler on all the pages of the Trust Deed
f) Witness by two persons on the Trust Deed.
4. Go to the local registrar & submit the Trust Deed, along with one
Photocopy, for registration. The photocopy of the Deed should also
contain the signature of settler on all the pages. At the time of registration,
the settler & two witnesses are required to be personally present,
alongwith their identity proof in the original.
5. The Registrar retains the photocopy & returns the original registered copy
of the Trust Deed with Registraion Certificate Number.
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