10 November 2010
Registering a Society: The application for registration of a society (under the Societies Registration Act, 1960) should be made to the assistant registrar of societies (in Maharashtra state, the assistant registrar of societies is the assistant charity commissioner) having jurisdiction over the region / sub region in which the society is sought to be registered. The application should be submitted together with • memorandum of association and rules and regulations; • consent letters of all the members of the managing committee; • authority letter duly signed by all the members of the managing committee; • an affidavit sworn by the president or secretary of the society on non-judicial stamp paper of Rs. 10/-, together with a court fee stamp; • a declaration by the members of the managing committee that the funds of the society will be used only for the purpose of furthering the aims and objects of the society. In Maharashtra State, since the registrar of societies is the charity commissioner, the society also has to be registered as a trust hence an application should also be made u/s 18 of the Bombay Public Trusts Act 1950, in the prescribed form. All the aforesaid documents, which are required for the application for registration, should be submitted in duplicate, together with a registration fee of Rs. 50/-. Unlike the trust deed, the memorandum of association and rules and regulations need not be executed on stamp paper. The process of registering a society generally takes a longer time than registering a trust. Registering a Trust: The application for registration of a public charitable trust should be submitted (under section 18 of the Bombay Public Trusts Act, 1950) to the deputy/assistant Charity Commissioner having jurisdiction over the region / sub region in which the trust is sought to be registered. In Mumbai, the office of the Charity Commissioner is situated at, 83, Dr.Annie Besant Road, Worli, Bombay – 400 018. The application should be made in the prescribed form, which is available, at a very nominal price, from the office of the charity commissioner. In Bombay, the form is also available at, Tax Print, 177,Bazargate Street, Bombay 400 001. After providing details (in the form) regarding designation by which the public trust shall be known, names of trustees, mode of succession, etc., the applicant has to affix a court fee stamp of Rs. 2/- to the form and pay in cash, registration fee that may range from Rs. 3/- to Rs. 25/-, depending on the value of the trust property. If the value of the trust property does not exceed Rs. 2,000/-, the registration fee levied is Rs3/-. If the value exceeds Rs. 25,000/- it is Rs. 25/-. The application form should be signed by the applicant before the regional officer or superintendent of the regional office of the charity commissioner or a notary. The application form should be submitted, together with a copy of the trust deed (the original may be produced, later, for verification) which is the main instrument of the trust. The trust deed is a document every trustee must turn to, whenever in doubt regarding the aims and objects of the trust, mode of succession or any issue concerning the management of the trust. The trust deed must be executed on non-judicial stamp paper, the value of which would depend on the valuation of the trust property. According to article 61 of schedule I of the Bombay Stamp Act, 1958, "where there is disposition of property" and "where the Trust is made for a religious or charitable purpose", the stamp duty is "the same duty as a Bond (article 13) for a sum equal to the amount settled or market value of the property settled". On reading the aforesaid article 61, together with article 13, of the Bombay Stamp Act, we understand that for "every rupees five hundred or part there of the stamp duty (w.e.f. 1-5-1993) is "rupees twenty". If one decides to start a trust with a token amount of Rs. 1,000/-, the trust deed should be executed on a non-judicial stamp paper of Rs. 40/-. It is advisable to use both sides of the paper, and the pages, other than the stamp paper, be of a variety known as "ledger paper". Both the settler/s and trustee/s in the presence of a witness should sign the trust deed. The witness may be a friend or relative. Some even prefers to sign before a notary. Two other documents which should be submitted at the time of making an application for registration is • Affidavit which must be sworn (by the trustees making the application) before a notary and executed on non-judicial stamp paper of Rs. 10/- • Consent letter, which may be prepared on an ordinary sheet of paper and signed by the trustee/s other than the trustee making the application. In the absence of a consent letter from the remaining trustees, the deputy/assistant charity commissioner can insist on the presence of all the remaining trustees for the hearing. Processing the application usually takes about six to eight weeks. A notice informing the applicant about the day and time fixed for a formal hearing is dispatched usually 10 to 15 days in advance. The applicant generally has to appear in person or depute his / her lawyer. The original trust deed should be produced for verification at the time of the hearing. The deputy / assistant charity commissioner before whom the enquiry is held has to ascertain: • Whether a trust exists and whether such trust is a public trust; • Whether any property is the property of such trust; • Whether the whole or any substantial portion of the subject matter of the trust is situated within his jurisdiction; • The names and addresses of the trustees and managers of such trust; • The mode of succession to the office of the trustee of such trust; • The amount of gross average annual income and expenditure of such trust; • Any other particulars as may be prescribed under sub-section (5) of section 18. After making inquiries on the aforesaid issues, the deputy/assistant charity commissioner makes entries in the register kept under section 17 (popularly known as schedule I) of the Bombay Public Trust Act and issues a certificate of registration which bears the official seal and registration number of the trust.