By CA Ved MittalVed & Associates

Trust Society Section 8 Company ( Section 8 of New

Company Act 2013 ) Special Licenses.

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◦ 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

There are Two Types of Trust◦Public Charitable/Religious Trust.◦Private Family Trust (AOP).

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.

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)Initial Corpus Fund / Trust Property.

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/= Two witness All other procedure as same as you purchased

the property and transfer

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.

Searching the Name of Proposed Society. 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/= All the papers has to be notarized.

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.

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

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 1950

Societies Registration Act

1860Indian Companies

Act 2013

       ObjectsSocial benefits &

CharitableSocial Benefits &

Charitable   Nonprofit Activities

Authority For Registration

Sub- Registrar of Societies Registrar of Society Registrar of Company

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 Procedures

    Required 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.

NameVery easy to

chooseVery easy to

choose

Prior approval required from Registrar of Companies.

Differential factors Trust Society

Company ( Sec 8 )

Management Board Trustees Governing Body

Board 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