Society/Trust Registration

In India, the registration of Societies and Trusts plays a pivotal role for non-profit organizations and charitable institutions. Whether it’s a social cause, an educational initiative, or a religious purpose, registering a society or trust provides the legal framework, credibility, and benefits required to carry out activities smoothly.

At K Alok & Associates, we specialize in guiding individuals and organizations through the process of Society/Trust Registration, ensuring compliance with legal requirements while simplifying the entire process for you.

What is Society/Trust Registration?

Society Registration

A Society is an organization formed by a group of people who come together for a common purpose, typically in the fields of education, health, culture, or social work. A registered society is recognized under the Societies Registration Act, 1860, and it provides its members with legal rights and the ability to own property, enter into contracts, and pursue legal actions in the name of the society.

Key Features of Society Registration:

• A minimum of seven members are required to form a society.
• The society must have a management committee that oversees the operations and ensures its objectives are achieved.
• Once registered, societies can apply for tax exemptions and government funding, which is essential for funding charitable activities.
• Societies can act as a separate legal entity, capable of owning property, entering contracts, and pursuing or defending legal actions in its own name.

Trust Registration

A Trust is a legal arrangement in which the Settlor (the person creating the trust) transfers assets to Trustees for the benefit of designated Beneficiaries. Trusts are governed under the Indian Trusts Act, 1882, and they can be formed for a variety of non-profit purposes such as religious, educational, charitable, or medical initiatives.

Key Features of Trust Registration:

• A Trust can be created by a minimum of two trustees.
• The Trust is formed by drafting a Trust Deed, which outlines the purpose of the Trust, the powers and responsibilities of the trustees, and the rights of the beneficiaries.
• Once registered, trusts are eligible for various tax exemptions and are eligible to receive donations and grants.
• Trusts have a defined structure and can operate efficiently with clear governance.

The Process of Society/Trust Registration

Society Registration Process

1. Choosing a Name for the Society
   The first step is to select a unique name for your society that reflects its mission and activities. The name should not be identical to any existing registered society, and it should align with the objectives of the organization.
2. Drafting the Memorandum of Association (MOA) and Rules & Regulations
   The Memorandum of Association (MOA) is a critical document that outlines the objectives, scope, and purposes of the society. In addition, Rules & Regulations specify the operational guidelines, membership requirements, election procedures, and management structure of the society.
3. Document Collection and Submission
   Collect the necessary documents such as the identity proof, address proof, and photographs of the founding members. These documents will be submitted to the Registrar of Societies along with the MOA and Rules & Regulations.
4. Verification by the Registrar
   The Registrar of Societies will review the submitted documents, verify their authenticity, and ensure compliance with legal requirements. If everything is in order, they will process the registration.
5. Receiving the Registration Certificate
   After successful verification, the Certificate of Registration is issued by the Registrar, officially recognizing the society as a legal entity.

Trust Registration Process

1. Drafting the Trust Deed
   The Trust Deed is a crucial document that outlines the objectives of the Trust, details of the trustees, and how the Trust will operate. It is signed by the Settlor (who creates the Trust) and the Trustees (those who will manage it).
2. Choosing Trustees
   You need to appoint at least two trustees to create a Trust. The details of the trustees, including their names, addresses, and identification proofs (such as PAN cards and Aadhaar cards), should be included in the Trust Deed.
3. Notarization of the Trust Deed
   The Trust Deed must be executed on a non-judicial stamp paper and notarized for legal validation. This step is essential to make the Trust legally binding.
4. Submission of Documents to the Registrar
   After notarization, the Trust Deed, along with the trustees’ identification documents, address proof of the Trust, and photographs of the trustees, is submitted to the local sub-registrar office for registration.
5. Receiving the Registration Certificate
   Once the documents are verified, the sub-registrar will issue a Certificate of Registration confirming the legal status of the Trust.

Documents Required for Society/Trust Registration

For Society Registration

• Memorandum of Association (MOA) with the objectives and scope of the society.
• Rules & Regulations detailing the management and operational guidelines.
• Identity proof (Aadhaar/PAN cards) and address proof (utility bill, lease agreement) of all the founding members.
• List of governing body members (at least seven members required).
• Affidavit of the members confirming their intent to form a society.
• Proof of Registered Address of the society (e.g., property ownership documents or rent agreement).

For Trust Registration

• Trust Deed with details of the objectives, trustees, and operational guidelines.
• Identity proof (Aadhaar/PAN cards) and address proof of the trustees.
• Photographs of the trustees.
• Proof of Trust’s Address (e.g., property ownership or lease agreement).
• PAN card of the Trust (if available).

Time Period for Society/Trust Registration

• Society Registration: Typically takes around 20 to 30 working days from the date of submission of the documents to the Registrar of Societies. Delays can occur if the documents are incomplete or if there are discrepancies in the application.
• Trust Registration: The process usually takes 7 to 15 working days if all documents are in order and there are no issues with the submission.

Why is Society/Trust Registration Important?

1. Legal Recognition
   Registration provides your organization with legal status, allowing it to function as an independent entity with the ability to sign contracts, own property, and engage in legal proceedings.
2. Tax Benefits and Exemptions
   Both societies and trusts are eligible for tax exemptions under the Income Tax Act, including Section 12A for charitable purposes and Section 80G for receiving tax-deductible donations. This can significantly reduce tax liabilities and help your organization save funds for its activities.
3. Eligibility for Grants and Donations
   Registered societies and trusts are eligible to apply for government grants, funding, and donations from individuals or other organizations. They can also raise funds through charitable events or initiatives.
4. Credibility and Trust
   Legal registration enhances the credibility of your organization and builds trust with stakeholders, donors, beneficiaries, and the public. It signals that your organization is transparent and accountable.
5. Governance and Transparency
   A registered society or trust has a clear governance structure with defined roles and responsibilities. This transparency is crucial for accountability and the smooth running of your organization.
6. Regulatory Compliance
   Registration ensures that your society or trust complies with the regulatory requirements of the government. Non-compliance may lead to penalties or disqualification for receiving benefits.

How K Alok & Associates Helps You in Society/Trust Registration

At K Alok & Associates, we provide expert assistance throughout the entire Society/Trust registration process. Our services ensure your organization is set up legally, efficiently, and in compliance with all statutory requirements.

Our Services Include:

1. Initial Consultation
   We assess your objectives and provide advice on whether a Society or a Trust would be more suitable for your needs. We help you understand the advantages of each structure.
2. Document Preparation and Drafting
   We assist in drafting the Memorandum of Association, Rules & Regulations, or Trust Deed. Our legal team ensures that all documents comply with the required legal formats and guidelines.
3. Filing and Submission
   We handle all paperwork, submission to the relevant authorities, and liaising with the Registrar to ensure your registration process is smooth and hassle-free.
4. Post-Registration Compliance
   We help you with compliance tasks post-registration, such as tax exemptions, filing annual returns, and preparing documentation for future grants or government funding.
5. Ongoing Advisory
   We provide ongoing advisory services to help you effectively manage the society or trust, ensuring long-term success.

Get Started Today with K Alok & Associates

Registering your society or trust is the first step towards creating a meaningful impact in society. Whether it’s for social welfare, education, or charitable work, K Alok & Associates is here to provide expert support to ensure that your registration process is simple, fast, and compliant.

Contact us now to begin your journey towards establishing a recognized, impactful organization that can make a difference!