Formation of voluntary/social organisation
Adv. Deepak
(Querist) 18 July 2009
This query is : Resolved
Respected Sirs/Madams, Would you please advise me the procedure for formation of social / voluntary organisation.
A V Vishal
(Expert) 18 July 2009
What is the constitution of the organisation, do you want to register it as a society or a trust.
A V Vishal
(Expert) 19 July 2009
Formation of Charitable Trust
Introduction
A public charitable or religious institution can be formed either as a Trust or as a Society or as a Company registered u/s 25 of the Companies Act.
It generally takes the form of a trust when it is formed primarily by one or more persons.
To form a Society at least seven persons are required. Institutions engaged in promotion of art, culture, commerce etc. are often registered as non-profit companies.
These forms are enumerated as under :
Charitable Trust settled by a settlor by a Trust Deed or under a Will.
Charitable or religious institution / association can be formed as a society.
Charitable institution can be formed by registering as a company u/s. 25 of the Companies Act, 1956, as non profit company (without addition to their name, the word "Limited" or "Private Limited").
Who can form a Charitable or Religious Trust
As per section 7 of the Indian Trusts Act, a trust can be formed –
by every person competent to contract, and
by or on behalf of a minor, with the permission of a principal civil court of original jurisdiction.
but subject in each case to the law for the time being in force as to the circumstances and extent in and to which the Author of the Trust may dispose of the Trust property.
A person competent to contract is defined in section 11 of the Indian Contract Act as a person who is of the age of majority according to the law to which he is subject and who is of sound mind and is not disqualified from contracting by any law to which he is subject. Thus, generally speaking, any person competent to contract and competent to deal with property can form a trust.
Besides individuals, a body of individuals or an artificial person such as an association of persons, an institution, a limited company, a Hindu undivided family through it's karta, can also form a trust.
It may, however, be noted that the Indian Trusts Act does not apply to public trusts which can be formed by any person under general law. Under the Hindu Law, any Hindu can create a Hindu endowment and under the Muslim law, any Muslim can create a public wakf. Public Trusts are essentially of charitable or religious nature, and can be constituted by any person.
Capacity to create a Trust
As a general rule, any person, who has power of disposition over a property, has capacity to create a trust of such property. According to section 7 of the Transfer of Property Act, 1882, a person who is competent to contract and entitled to transfer the property or authorized to dispose of transferable property not his own, either wholly or in part and either absolutely or conditionally, has 'power of disposition of property'.
Thus, two basic things are required for being capable of forming a trust –
power of disposition over property; and
competence to contract.
Who can be a Trustee
Every person capable of holding property can become a trustee. However, where the trust involves the exercise of discretion, he can accept or act as a trustee only if he is competent to contract. No one is bound to accept trusteeship. Any number of persons may be appointed as trustees. However, no trust is defeated for want of a trustee. Where there is no trustee in existence, an official trustee may be appointed by the court and the trust can be administered. An executor of a Will may become a trustee by his dealing with the assets under the provisions of the Will. When an executor is functus officio to any of the assets and yet retains them, he becomes a trustee in respect of those assets.
Who can be a Beneficiary
In a private trust the beneficiaries are one or more ascertainable individuals. In a public trust the beneficiaries are a body of uncertain or fluctuating individuals and may consist of a class of the public or the whole public. Generally, a private trust is not a permanent one. But a public trust is of a permanent nature. If properties are ded
Amarjeet yadav
(Expert) 19 July 2009
first u have to tell the purpose of that organization.
If it is for the social welfare similar to a NGO then the following is the procedure.
u can register a NGO in three mode
NGO Registration Methods
1. Trust 2. Society, and 3. Non profit Company
In India non profit / public charitable organisations can be registered as trusts, societies, or a private limited non profit company, under section-25 companies. Non-profit organisations in India (a) exist independently of the state; (b) are self-governed by a board of trustees or ‘managing committee’/ governing council, comprising individuals who generally serve in a fiduciary capacity; (c) produce benefits for others, generally outside the membership of the organisation; and (d), are ‘non-profit-making’, in as much as they are prohibited from distributing a monetary residual to their own members.
Section 2(15) of the Income Tax Act – which is applicable uniformly throughout the Republic of India – defines ‘charitable purpose’ to include ‘relief of the poor, education, medical relief and the advancement of any other object of general public utility’. A purpose that relates exclusively to religious teaching or worship is not considered as charitable. Thus, in ascertaining whether a purpose is public or private, one has to see if the class to be benefited, or from which the beneficiaries are to be selected, constitute a substantial body of the public. A public charitable purpose has to benefit a sufficiently large section of the public as distinguished from specified individuals. Organisations which lack the public element – such as trusts for the benefit of workmen or employees of a company, however numerous – have not been held to be charitable. As long as the beneficiaries of the organisation comprise an uncertain and fluctuating body of the public answering a particular description, the fact that the beneficiaries may belong to a certain religious faith, or a sect of persons of a certain religious persuasion, would not affect the organisation’s ‘public’ character.
Whether a trust, society or section-25 company, the Income Tax Act gives all categories equal treatment, in terms of exempting their income and granting 80G certificates, whereby donors to non-profit organisations may claim a rebate against donations made. Foreign contributions to non-profits are governed by FC(R)A regulations and the Home Ministry.
CAF would like to clarify that this material provides only broad guidelines and it is recommended that legal and or financial experts be consulted before taking any important legal or financial decision or arriving at any conclusion.
Formation and Registration of a Non -Profit organisations in India
1) Trust
2) Society
3) Section-25 Company
Additional Licensing/ Registration
I. 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 t
Sarvesh Kumar Sharma Advocate
(Expert) 19 July 2009
make memorundam and biloge of your orgenizatn and then regiterd it to the chits and fund ragistra office.
Sarvesh Kumar Sharma Advocate
(Expert) 19 July 2009
mr visal,
there no need forthe explan
need to be redg. the document
and i suggest accurate.
in such order i can ragister the firm
if you want
then i accept
make a firm
i will register that.
o.ok
long explation can never good my sir.
either copy and past is also good sir.
A V Vishal
(Expert) 19 July 2009
Sarvesh
What is that you are trying to explain is not understandable what is biloge , orgenizatn, regiterd, ragistra, explan, redg, explation. It is confusing and as a lawyer you need to know that you need to convey your ideas clearly, further I don't copy and paste, these are my own writings, I need not learn how to present and explain, alright. I think you got my point.
Sarvesh Kumar Sharma Advocate
(Expert) 19 July 2009
ask them whose query for that.
not your issue(hope so proud)
there no need for gramer need for convesing.
A V Vishal
(Expert) 19 July 2009
Sarvesh
What is that you are trying to explain is not understandable what "ask them whose query for that.not your issue(hope so proud)there no need for gramer need for convesing."
. It is confusing and as a lawyer you need to know that you need to convey your ideas clearly,
Sarvesh Kumar Sharma Advocate
(Expert) 19 July 2009
it was not your query.
and why you become for that issue of a lawyer?
is their any dought about your lawyer ship in past or you facing somp problem with you regarding this,
for this i am sorry.
may god helps you.
typing mistakes make with typing it can not be come with copy and past.
Sarvesh Kumar Sharma Advocate
(Expert) 19 July 2009
vishal sir,
i thing that issue is no more with my side ,
and i feel excuse with my side for inconviniance of my typing langauge,
if GOD will allowed we will meet again.
Adv. Deepak
(Querist) 19 July 2009
Resp. Adv. A.V. Vishal and Adv. Amarjeet Yadav, I am so thankful to you for the detailed information you have supplied on the subject. All my doubts got cleared and I got the detailed idea of the subject. Regards.
A V Vishal
(Expert) 19 July 2009
Obviosly the query doesnot also belong to you either. I have no problem regarding my practise or my advises rather I have problem regarding people giving wrong advises, I think you have not understood the query of the querist and instead advising registering with the chit fund registrar. God always helps me and gives strenght to cope against people like you. I too understand what a mistake is, once committed or twice can be a mistake. Committing the same thing everytime is not called a mistake.
Further, you cannot make false allegations of copy and pasting, which I never do or owe any explanation to persons like you.
Sarvesh Kumar Sharma Advocate
(Expert) 19 July 2009
vishal sir,
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Khaleel Ahmed Mohammed
(Expert) 25 July 2009
Get it registered with registrar of societies , with your bye laws and objectives.
