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Formation of NPO By CA Ved MittalVed & Associates
205 , Jagdamba Tower13, commercial complex
Delhi-110092Contact : 011-22456788,42686788
9811011665cavedmittal@gmai.com
Trust Society Section 8 Company ( Section 8 of New
Company Act 2013 ) Special Licenses ( State Trading corporation)
.
Formation of A NPO
Section 2(15) of income tax Act 1961 defines the expression “charitable purpose” in an inclusive manner to include◦ Relief of the poor◦ Education◦ Medical relief◦ Preservation of Environment(Including Watershed,
forests and wildlife)◦ Preservation of monuments or places◦ Preservation of artistic or historic interest◦ Any other object of general public utility
Meaning of “charitable purpose”
The Following Laws or constitutional Articles of Republics of India are relevant to the NPO◦ Article 19(1) ( c ) and 30 of the constitution of India◦ Concurrent List ( List III ) Entry 10 “ Trusts and
Trustee” and Entry 28 “ Charities and charitable institutions”
◦ Income tax Act 1961◦ Public Trust Act of Various States and Indian Trust Act
1882.◦ Society Registration Act 1860.◦ Section 8 of Indian companies Act 2013◦ Foreign Contribution Regulation Act 2010
Relavent Acts
There is NO ANY CENTRAL ACT’S in relation to the charitable trust’s which cover the whole meanings.
Charitable and Religious Trust Act 1920 is the one of the central act which governs many provisions related to Public Trust’s.
First Law of the trust in India came into force known as Indian Trust Act 1882 but it was basically for Private Trust’s.
In the state of Maharastra,Rajesthan,Gujrat, Madhya Pradesh etc have their own State Act’s.
Section 92 of Code of Civil Procedure 1908 also express the meaning of Public charity.
Trust in the Eye’s of Law
The Registration for a Trust , whether in relation to a movable property or an immovable property is optional but always desirable.
A Registered Trust Deed has certain advantages which are listed below◦ A registered Trust Deed is an official document
which carries support and force of Law◦ It effectuates transmutation of Possession◦ A Conveyance of Trust proper to trustee under a
Registered Deed is generally not open to Challenge.
Registration of Trust
These trust are registered under the Sub-Registrar as per the area of the registered office of the trust.
Requirements:-(i) Settler:- Who creates the trust.(ii) Trustee:- Who look after the trust. Minimum 2(iii) Objectives.(iv) Initial Corpus Fund / Trust Property.(v) Beneficiaries:- Public at Large with any
discrimination as Cast, colour & Religion.
Registation of Trust
The Following mentioned Papers need to be submitted at the Office of Sub- Registrar
Two copy of the Trust deed with duly signed and photo of settler and trustees
Address proof of the registered office with NOC Address proof of Settler and Trustees A Pay order of Rs. 1100/= Stamp Duty @ 3% of initial Trust Property value (In Delhi ) Two witness All other procedure as same as you purchased the
property and transfer
Registration of The Trust
Key points to be remembered:-◦ Name of the Trust.◦ Name of the Settler.◦ Name of the Trustees.◦ Initial Corpus Fund.◦ Main Objective of the Trust.◦ Ancillary Objective.◦ General Body.◦ Executive Committee.◦ Quorum.◦ Operating Bank Account.◦ Dissolution.
Key Points of Trust Deed
Details of District’s in DelhiDISTRIC
T OFFICE ADDRESS
CENTRAL Sub-Registrar- I Office of SR, Old Court Building, Kashmere Gate, Near Ritz Cinema, Delhi. Phone No.(Off.) 23860435
CENTRAL Sub-Registrar- III Office of SR-III, 4/7, Asaf Ali Road, New Delhi. Phone No.(Off.) 23274826
SOUTH Sub-Registrar- V Office of SR-V, Mehrauli Tehsil Building, Mehrauli, New Delhi. Phone No.(Off.) 26646116
SOUTH e-Sub-Registrar- V Office of e-Sub Registrar-V, Mehrauli Tehsil Building, Mehrauli, New Delhi. Phone No.(Off.)26646700
NEW DELHI Sub-Registrar- VII Office of SR-VII, INA, Vikas Sadan, New Delhi. Phone No.(Off.) 24626011
SOUTH WEST
e-Sub-Registrar- IX
Office of SR-IX, Old Terminal Tax Building, Kapashera, New Delhi. Phone No.(Off.) 25069483
DISTRICT OFFICE ADDRESS
WEST e-Sub-Registrar-II Office of SR-II,Opposite Rajdhani College, Basai Darapur Delhi.
WEST e-Sub-Registrar-IIA Office of e-Sub-Registrar II A, Punjabi Bagh (Nangloi) Near Nangloi Metro Station, New Delhi. Phone No.(Off.) 25183588
NORTH EAST Sub-Registrar - IV DC Office Complex NE, Nand Nagri, Delhi. Phone No.(Off.) 22132199
NORTH EAST Sub-Registrar - IV-A DC Office Complex NE, Nand Nagri, Delhi. Phone No.(Off.) 22139178
SHAHDARA e-Sub-Registrar - IV-B
Office of e-Sub Registrar-IV B,DC Office Complex NE, Nand Nagri, Delhi.
EASTSub-Registrar – VIII(Gandhi Nagar) Office of the SR-VIII, L M Bundh Office Complex, Shastri
Nagar, Delhi. Phone No. (Off.) 22025615
EASTe-SubRegistrar –VIIIA(Preet Vihar)
Office of the SR-VIII A, L M Bundh Office Complex, Shastri Nagar, Delhi. Phone No. (Off.) 22025615
NORTH Sub-Registrar – VI O/o Sub Registrar, G.T. Karnal Road, Ali Pur BDO Office, Delhi.
NORTH WEST e-Sub-Registrar – VI O/o e-Sub-Registrar, Near Police Station,Kanjhawala, Delhi-110081
NORTH WEST e-Sub Registrar – VI O/o e-Sub Registrar, Sector-16, Ambedkar Bhawan, Rohini, Delhi.
NORTH WEST Sub-Registrar – VIA O/o Sub-Registrar, Sector-16,Ambedkar Bhawan,Rohini, Delhi.
Details of District’s in Delhi
Societies Registration Act 1860 is a Central Act.
Various State made their on act on the basis of Societies Registration Act 1860. We can say this act is the Foundation of all Societies Registration Act’s.
Minimum 7 Member in State Level and minimum 9 member with 8 different state’s at National Level ( in Delhi ).
Various Applicable Law’s of Society
Searching the Name of Proposed Society ( Via Link http://www.delhi.gov.in/wps/wcm/connect/doit_industry/Department+of+Industries/our+Services1/Society+Name+Search ).
Two copy of the Bye-Laws with duly signed by all initial Members. Address proof of the registered office with NOC Address proof of all initial Members A Receipt of Rs 50/= Affidavits by the Presidents/ Secretary. All the papers has to be notarized. Submit all the Papers with the office of Sub- Registrar of the District
in Delhi. After duly verification of all the document a certificate of the
registration of Society has been issued with True Certify copy of Bye-Law’s of the Society.
How to Register Society
Key point to be remembered◦Name of the Society.◦Work Scope within state or Whole of India.◦Main Objective.◦Ancillary Objective.◦General Body.◦Executive Committee.◦Quorum.◦Operating Bank Account.◦ Dissolution Clause.
Bye- Laws of the Society
Minimum 2 members in a private and 7 members in public company.
2 director in Private Company & 3 Director in Public Company.
Company may or may not have Share Capital. Main objective of the company should be
promote commerce, art, science, Religion, charity or other useful objectives.
Apply its profit for promoting its objects and prohibit payments of dividends to its member’s.
Requirement of Section 8 Company
Registration Procedure:-(i) Availability of name :- in form no INC-1
applies with the ROC as normal name application for companies.
(ii) Application for License :- After approved name we file application for License in form no INC-12 with the following documents.
1. Draft Memorandum of Association as per form INC-13.
2. Draft Article of Association
COMPANY U/S 8
ii. Application for License ( continued ):-
3. Declaration in form No INC-14 ( Professional Declaration ).
4. Declaration in form No INC-15 ( Directors Declaration ).
5. Estimated income & Expenditure for next 3 years6. Approval/ concurrence/ NOC of the concerned
Authorities7. Copy of Resolution Passed in General Meeting and
Board Meeting.8. Assets & Liabilities Statements with their values as
per applicable Rule.9. List of Proposed Promoters.10. List of Proposed Directors.11. List of key managerial personnel.
(iii) After Receiving License we file following form Form
HeadingCompanies Act 1956
Companies Act 2013
Application for incorporation of the company ( other than OPC )
Form – 1 Form – INC-7
Notice of Situation or change of situation of Registered office
Form- 18 Form-INC-22
Particulars of appointment of Directors
Form-32 Form- DIR-12
Registration Procedure ( contin…..)
Differential factors Trust Society
Company ( Sec 8 )
Basic Document
Trust Deed - which contains objects of the
trust (bye-law)
Memorandum of AssociationArticles of
Association with rules & regulations.
Memorandum of Association Articles of
Association Formation Very Easy Easy Little Hard
Jurisdiction
Deputy Registrar / Charity Commissioner
Registrar of Societies -
For Maharashtra Charity
CommissionerRegistrar of Companies
Legislation / Statute
Relavent state Trust Act - Bompany Public Trust
Act 1950Societies
Registration Act 1860
Indian Companies Act 2013
ObjectsSocial benefits &
CharitableSocial Benefits &
Charitable Nonprofit Activities
Authority For Registration Sub- Registrar of Societies
Registrar of Society/ Office SDM
Headquarter. Registrar of Company
Controlling Monopoly Democratic Professional
Comparison
Differential factors Trust Society
Company ( Sec 8 )
Re-ammendment
or
Modification of Objects
Can be done by Trustees but
Procedure u/s 92 of code of civil procedure
be required
by Members in governing body meeting with
Special ResolutionComplicated
Legal ProceduresRequired Members
Minimum = 2 Maximum = No
limit Minimum = 7
Maximum = No limit
Minimum = 2 /3 Maximum = No
limit
Registration
As Trust with the Registrar.
As Society with Society Registrar - Both as a society
and a trust in some states like
Maharastra.As per Companies
Act under Section 8
Stamp Duty
As per the Stamp duty Act of relevant State
of Trust property Value will be executed in non judicial stamp
paper with the registrar
No stamp paper required for
Memorandum of association, and
rules and regulations.
No Stamp paper required for
Memorandum of association and
articles of association.
Name Very easy to chooseVery easy to
choose
Prior approval required from Registrar of Companies.
.
Differential factors Trust Society
Company ( Sec 8 )
Management Board Trustees Governing BodyBoard of Directors & Management
committee
Voting RightsEqual rights to all
TrusteeEqual Rights to all
MembersDepand on share
HoldingSuccession in Management By Appointment By Election By Appointment
MeetingsBoard of Trustee
Meeting
Annual Meeting As per Law. Governing Body meeting as per the rules of
Society.Shareholder / Directors
MeetingMembership
Transfer By Nomination By NominationTransfer as per Companies Act.
Member Admission PossibleGoverning Body
Control
General Body or Board Control
through issue of Capital.
Dissolution or Take over by State Possible Possible
As Per Companies Act 2013
Compliance Low Medium HighFilling the Suit by
outsider In the name of TrusteeIn the name of
Governing Body In the name of Company
Annual documents to Be filed No Such Requirement
Annual Audited Accounts and List of
Governing BodyAnnual Return and audited Accounts
.
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