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TRUST FORMATION

naman modi (Article) (111 Points)

20 April 2011

WHATS THE PROCEDURE TO FORM A TRUST ABOUT

1 DOCUMENT FILING & PREPARATION

2 WHERE TO FILE DOCUMENT (IN DELHI)

AND SOME OTHER ISSUE

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2 Replies

RAMESH KUMAR VERMA ( CS PURSUING ) (43853 Points)
Replied 20 April 2011

YOU CAN GO THE S.D.M. OFFICE OF YOUR AREA , FEE FOR REGISTRATION IS RS. 1100.00

MORE INFORMATION IS:-

Formation of Trusts
A public charitable trust is usually floated when there is property involved, especially in terms of land and building.

Legislation: Different states in India have different Trusts Acts in force, which govern the trusts in the state; in the absence of a Trusts Act in any particular state or territory the general principles of the Indian Trusts Act 1882 are applied.

Main Instrument: The main instrument of any public charitable trust is the trust deed, wherein the aims and objects and mode of management (of the trust) should be enshrined. In every trust deed, the minimum and maximum number of trustees has to be specified. The trust deed should clearly spell out the aims and objects of the trust, how the trust should be managed, how other trustees may be appointed or removed, etc. The trust deed should be signed by both the settlor/s and trustee/s in the presence of two witnesses. The trust deed should be executed on non-judicial stamp paper, the value of which would depend on the valuation of the trust property.
Trustees: A trust needs a minimum of two trustees; there is no upper limit to the number of trustees. The Board of Management comprises the trustees.

Application for Registration:
The application for registration should be made to the official having jurisdiction over the region in which the trust is sought to be registered.

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 a very nominal registration fee which may range from Rs.3/- to Rs.25/-, depending on the value of the trust property.

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.

Two other documents which should be submitted at the time of making an application for registration are affidavit and consent letter.

Model of Trust deed available on this link :

Model of Forms to be filled for Registration of a Public Trust are given below :

Form of Application for Registration of a Public Trust
Schedule II (Vide Rule 6)

Court Fee Stamp
of Rs. 2/-

To
The Deputy/Assistant Charity Commissioner,
............................................................................ Region/Sub-Region
In the matter of Public Trust* ..............................................................
.......................................................................................................

I ............................................. trustee of the above named public trust, hereby apply under section 18 of the Bombay Public Trust Act, 1950 for the Registration of the said public trust.

I submit the following necessary particulars:–

(ai)

The designation by which the public trust is or shall be known.
(Name of the Public Trust)

(i)

Names of the trustees and managers with their addresses

(ii)

Mode of succession to the trusteeship and managership

(iii)

Objects of the trust :

(iv)

(a)

Particulars of documents creating the trust
(attach copies)

(b)

Particulars other than documents about the origin or
creation of the trust.

(v)

Particulars of the scheme, if any, relating to the trust
(attach copy).

(vi)

Movable property with estimated value of each class
of such property.

(Note:– Entries should be made by board descriptttion
of classes of such property, e.g., furniture, books, etc.,
rather than of each individual article. Entry regarding
cash should be made only if such cash forms part of
the capital of the trust. In the case of scripttts give
particulars of each security, stock, share and debenture
including the number which it bears).

(vii)

(a)

Details of immovable properties showing the
village or town where situate, along with C. S.,
Municipal or Survey No., area, assessment or Judi
and descriptttion of the tenure on which held (attach
certified copies of the entries in the Record of Rights,
city survey record or municipal record relating to
the properties).

1.

2.

3.

(b)

Estimated value of each immovable property:–

1.

2.

3.

(viii)

Sources of income of the trust.

(ix)

Average gross annual income:–

From Movable:–

From Immovable:–

(x)

Average annual expenditure

(xi)

Amount of average annual expenditure:–

(a)

on remuneration to trustees and manager ..

(b)

on establishment and staff ..

(c)

on religious objects ..

(d)

on charitable objects ..

(e)

on miscellaneous items ..

(xii) Particulars of encumbrances, if any on trust Property –

(xiii)

Particulars of title deeds pertaining to trust
property and the names of trustees in possession thereof –

(xiv)

Remarks, if any –

Fees of Rs............................../- (...............................................) accompanies

Any communication to the trustee or manager in connection with the trust, may be sent to the following address :–

Name .......................................................

Address ....................................................

...............................................................

Date .................

Signature of Applicant.................

I, the above named ............................................. inhabitant residing at ......................................... do solemnly affirm and say that what is stated in the above application is true to the best of my information and belief.

Solemnly affirmed at .................................. ]
aforesaid this ................... day of .............. ]	Signature ................................
200... ]
Before me.

* Give full name and address of the trust.
* If the Wakf or Trust is registered under the old Acts, no fees under 3 are payable.

CONSENT LETTER

Deputy Charity Commissioner/Assistant Charity Commissioner
.............................. Region

Sir,

Shri ..............................................................................................................................................
(Name of Applicant)
For Charitable Institution/Association/Trust ........................................................................... have applied for registration under B.P.T. Act, 1950, on .................................... The information provided in the application are true, we have not to say anything more than that. We state that a separate notice for the details of the said application is no more necessary. We have no objection for the issue of Registration Certificate in the name of applicant. Please note that.


	Name of other trustees (including the applicant)	Signature
1.	....................	.................
2.	....................	....................
3.	....................	....................
4.	....................	....................
5.	....................	....................
6.	....................	....................
7.	....................	....................
I know all the above said signatories.
		(Applicant Sign.)

		Date :