Charitable Trust / Society Deed

Charitable Trust / Society Deed

Any non-profit organization can be registered in India as trusts, societies or a private limited company under section 8 of the Companies Act, 2013. They exist independent of the governments interference. Their activities are towards relief to the poor in the form of education medical aid and any other object of public utility. The Indian Trusts Act, 1882 regulate the activities of all these trusts in the national level and the state legislation, in individual states. Charitable, religious and hospitality and rehabilitation institutions can be formed by executing the trust deed. A trust deed is signed between a settler and the trustees. A settler is a person who creates the trust for some charitable purpose whereas; the trustees are the people who manage the trust.

Major elements of a trust deed are as follows:

1) Objects

2) Acceptance of Funds

3) Investments

4) Power of the Trustees

5) Accounts and Audit

6) Winding up

The Trust Deed must be executed on Stamp Paper of suitable value and signed by the settler and two witnesses. Once the Trust Deed is executed, it can be registered with the Local Registrar. The Registrar would then register the Trust, retain photocopy of the Trust deed and return the original registered Trust Deed back to the settler.