Registration of the Trust

[Pravin Shirude]

Glad to see a very good response from the members and very soon we
would be legalizing our trust...hope to see your same support.......

If you would like to give any suggestions on this front please do not
hesitate...and please do so under this thread only..

Cheers
Pravin

[kirti]

By the way, it will be good if the details of status of registration
will be kept upto date in this thread only! let it be primary
discussion with other trusts or the relevant persons . .. ...so that
everyone will be aware of problems we are facing in registering the
trust!
cheers
kirti

[kirti]

Well, I am sorry for the repeat message as I am jst copy pasting the
response from suresh-the founder regarding the registration of trust
so that everything related to registration will be under one thread
(and I wont be responsible for this content as this is jst copy paste
and provided by someone-else)

Message from suresh:

I have been discussing people already inviolved in one or more similar
trusts, about the possibility of having a bank account before its
registration. but still waiting for the right and complete
information. I also went through the formalities of the registrating a
Trust, and it seems we only need to fulfill minimal requirements for
documnetation, and we need to have minimum 2 trustees and a nominal
registration fee of about Rs 2000 depending upon the state in which
you want to do that... so not a big problem... At the same time i have
been looking for some one in India who can take these efforts to
register the Trust and open a bank account.... some suggested SBI
while others ICICI..... May be by looking this message... if someone
or a group of more than one people want to volunteer any of these two
activities or even both...that would be great...

[Abdul Rehman Nagori]

Is that finalized that we want to register it as trust only ,not as a society ??
cause both have some differences .

[Pravin Shirude]

Well gusy its better we keep things as simple as it can be.....I mean
propose/post more direct solutions to the problems we are
facing.....as we need to move on.... because our main objective is to
help the needy people for education throught this trust......as
Vijayendra is getting the information about the documenation and
procedure to register this trust (Kudos to Vijayendra)....I am
positive that very soon we would be legalizing the trust...
Cheers guys keep the good work........

Cheers
Pravin

On May 18, 6:29 pm, "Abdul Rehman Nagori" <pseudofa...@gmail.com>
wrote:

> > > > Pravin- Hide quoted text -
>
> - Show quoted text -

[Vijayendrakumar]

Dear friends,                    in india  govt. No more register it as trust but as society first then we get certificate as registered trust .... What i mean by this in old days people had their now trust where all their keith and kins were the members and was kind of monopoly .. It is now abolished now trust cum society can have maximum two members in blood relation ... In our case we all are different so It's not a problem ...but for registering it we need group of people who will be back bone or kind of brain tank for trust....we call them as trustee ... This info is authentic and is shared by one of my friend who himself runs one trust in maharashtra....

[Abdul Rehman Nagori]

Well according to my authentic info, the registration as trust is still allowed in most states of India, but has been changed in the state of Maharashtra .
as most states have there own Trust laws and society laws ,so we need to first finalize in which state we have most members on ground level who are willing to be a trustee ,as a trustee of the trust will be responsible for all the activities and monetary disputes and he can be sued in event of any dispute.

[Abdul Rehman Nagori]

and since our trust's main sponsors will be Foreign sources ,so we need to have a certificate for that issue also from ministry undertaking it along with Income tax department.

[Suresh Chawrai]

Dear all,

 

if you go throught the following pages... I think they give most of the information. I have already gone through and I thought instead of writing my understanding, it would be much better to put the original reseouce...

 

http://www.ngosindia.com/resources/ngo_registration.php

http://www.ngosindia.com/resources/ngo_registration1.php

I still have to go through the following page..

 

http://www.ngosindia.com/resources/indian_trust_act.php

 

 

Thanks

 

Suresh

 

 

 

 

2008/5/19 Vijayendrakumar <vijen...@rediffmail.com>:

Emmanuel College
13 Park Terrace, Basement Flat,
CB1 1JH, Cambridge
Email: sr...@cam.ac.uk

[Rajesh Mulchandani]

Hi All,

 

I think the best way to move forward is:

1.    Register the trust. Can anyone volunteer to find the legal process involved and cost? This is the most important step. Apologies if someone has already done this in past.

2.    Register the domain and get some web space. The cost of this is around $200 per annum. Its time to put our ideas to work. We need a web presence (other than groups) to let the world know about trust.

3.    Develop the website and publish our objectives. Also we should include case studies i.e. schools or pupils we are going to help (approved by the board). Mind you we need to make clear that these are the potential candidates and we need funds to help them.

4.    Also we need to clearly mention our selection process and how we are going to report the progress?

 

About which schools or pupils we need to help, just step outside your house and you will find hundreds of candidates. To give a head start, look at the regions hit by natural disasters in recent past. Latur in Maharashtra, Gujarat or some flood affected regions of Assam. Someone would argue that we can reach such places as we don’t have manpower. Who is saying we need to all this in very first year. I am sure as this trust grows, we may have members from every corner of the world. Be optimistic if you want this trust to work.

 

I already know someone who needs helps from a trust like ours. I will post a case study soon once I have all the details.

 

Hope this helps…

 

Rajesh

[Suresh Chawrai]

Dear All,

I have been suggested by a couple of my friends that opening the bank
account in SBI would be more advantageous that in ICICI. Reasons: we
dont have to keep a minimum but a huge amount of money all the time in
SBI (but will have to do so in ICICI). There are lesser formalities
and conditions for opening a bank account on Trust's name and money
transaction in SBI. Another important difference....SBI has its
Branches at many places, although not all of them have become online.

Rashim once asked where to have a bank account - i suggest, obviously
in India. Why? - most of the time money will have to be released from
india only. For in-coming money

1. as membership fee..... we think we can request one person from each
country to collect the fees from rest in that country and then
transfer via Money2Inda to the Trust's account.

I can volunteer from UK, Sachin Songire has volunteered from Germany
(need to confirm once again)... it's not necessary to have only one
volunteer from one country. Amit Shirode from US also agreed to do the
collecions from US (I guess we might need one more from US.... Rashim,
if you also volunteer for this cause, can you collabrate with amit and
discuss about this? ). Others are most welcome to volunteer for this
purpose

Many thanks,

Suresh

[pramod rao]

hi...

 

suresh this is pramod here...

what is this trust about...

i m not gettin it yar..

 

Matunga (E),
Mumbai-400 019
pram...@rediffmail.com

[Suresh Chawrai]

Welcome Pramod,

 

Please go through the following pages

 

http://groups.google.com/group/esitrust/web/about-education-support-india-trust-esit

 

http://groups.google.com/group/esitrust/web/questions-and-answers-about-esit

 

and as many discussions as you can....

 

many things should become clear then.

 

we hope to see your comments and suggestions...

 

Suresh

 

2008/5/20 pramod rao <pram...@gmail.com>:

[Pravin Shirude]

Thanks Rajesh for your kind suggestions/comments........Definately we
would be legalizing the trust ASAP......It would involve approx..INR
2000/-....
Definately we would look forward to see your case study for someone
who needs help...

Cheers
Pravin

On May 19, 9:58 pm, "Rajesh Mulchandani" <rajeshmulchand...@gmail.com>
wrote:

> Hope this helps.
>
> Rajesh

[indrani pal]

HI all,

I am Indrani from Cambridge. As I see lots of discussions are on, I'm
sorry that I have no experience as regards to trusts/society
registration matters. However, there are many good suggestions are
pouring into this forum, which indicate that many capable people are
there to handle this particular situation. :-)

As far as opening a bank account matters, according to my personal
experience and view, Suresh's suggestion is absolutely correct, that
SBI could be a better choice.

I shall definitely get back to you guys if I have something different
in my mind as regards to other aspects on how to give a good shape to
this trust/society.

Cheers!

Indrani

> > the Rajesh

[Rashim Singh]

Hi All

 

I have said it earlier and i am saying it again, there are legalities involved in raising dollars here and sending them to India. Couple of things:

 

1) If its a trust, it has to have a FCRA account if it is going to get money from US. FCRA is a approval from government of India for receiving foreign currency. Without FCRA money transfer is ILLEGAL, until personal. Until you get FCRA  which takes time, its good to use money2india personal account. Which means money from one person account here to same person account in India and then donation from that account to trust. But we still needs to figure out if that is legal.

 

2) Another way, which most of other NGOs with fundraising here but action in India must be doing. We need to ask that from other NGOs. Up to my knowledge, they register at two different places, and these organizations are considered two different entity in legal terms.

 

But as far i understand, you should register something like NRI account in name of trust/individual in US and submit all money there and that can be transfered to an Indian Trust/individual account and the two accounts can be connected like an NRI account. We need to talk to SBI New york for the feasibility.

 

Need for this is because our fundraising will not be only membership money collection. We are talking about raising big amounts, may be from non-members too. We will need accounting and to trust one person with so much money handling and checks going in personal account will be difficult. Its not that you can not trust, its a lot of work and legal accountability. 

 

If we choose to send checks from here to India directly to Trust account, it might be costly and will involve lot of hassel, delays, lost of checks in transit. Completely unprofessional and risky. Best way is to have account here, and submit all checks in account and may be later we will start credit card transaction directly to accounts. We will see that later.  

 

Most important thing is figure out what is Legal, we don't want to get into any problems later.
So, someone who is opening bank account in India, needs to talk to foriegn transcation guys about this and let us know. What needs to be done here can be figured out later after we get some info.

 

The NGO i work with, have an account here but does not send any money without FCRA to India and does not send have any personal account in India where they transfer money and then release it from there. So, checks is dispatched from here directly to NGO which is working.

 

If someone need more clearance i can talk on phone too. Call me at 832-518-9110. As far as taking this responsibility is concerned, i have enough on my plate right now because of my involvement with the other NGO. I might be able to involve actively after one year, when i leave my current post. Right now i can only give legal and technical advices based on my experiences, if people are interested.

 

regards

Rashim
 

[Suresh Chawrai]

About the legalities for creating a 'Trust': (http://www.ngosindia.com/
resources/ngo_registration.php)


Trust

Statute/Legislation Relevant State Trust Act or Bombay Public
Trusts Act, 1950

Jurisdiction Deputy Registrar/Charity commissioner

Registration As trust

Registration Document Trust deed

Stamp Duty Trust deed to be executed on non-judicial stamp
paper, vary from state to state

Members Required Minimum – two trustees. No upper limit.

Board of Management Trustees / Board of Trustees

Mode of Succession
on Board of Managemen Appointment or Election

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.