A trust can be formed as per Section 4 of Indian Trust Act 1882 for a lawful purpose. A trust should have a document written and signed by trustees or a sole trustee. A trust can be formed through a will also. Therefore, there is no definite form to create a trust. Objectives of the trustee should be clear and unambiguous.
A minimum two persons are required to form a trust which can be set up by executing a trust deed on non-judicial stamp paper after paying necessary Stamp duty as applicable. Trust deed enumerates the aims and objects and mode of management of the trust. Minimum two trustees are required to register Trust.
Voluntary organizations (VOs) / Non-Governmental Organizations (NGOs) include organizations engaged in public service, based on ethical, cultural, social, economic, political, religious, spiritual, philanthropic or scientific & technological considerations. VOs include formal as well as informal groups, such as community-based organizations (CBOs); non-governmental development organizations (NGDOs); charitable organizations; support organizations; networks or federations of such organizations; as well as professional membership associations. VOs / NGOs should broadly have the following characteristics:
It is also pertinent to note that Non-Governmental Organisation (NGO) or also known as Non-Profit Organisations can be set up in the form of “Public Charitable Trust” form as well. Forming NGO’s in such form will have the following benefits
We Provide the following Services for a Trust
For brief understanding here below, we have enumerated few Frequently Asked Question
Q1 What are the purposes for which a trust can be formed?
Trust cannot be formed for the following purposes under Sec.4 of the Act:
a) Unlawful purposes;
b) Against provisions of Indian Trusts Act, 1932 rules made thereunder;
c) If there are provisions for cheating etc. in the trust;
d) If the trust is intended to cause loss or damage to one's property
Q2 Who can form a trust?
The following can form a trust under Sec.7 of the Indian Trusts Act 1882:
a) A person capable of making a contract can form a trust;
b) Trust can be formed on behalf of minor with permission of the Civil Court.
Q3 What are the Documents for registration of Trust?
Q4 Can a trust be cancelled?
A trust can be cancelled on the following grounds as per Sec. 78 of The Indian Trust Act 1882:
Q5 Can the defects in the trust be cured by amendment?
Yes, the amendment can be made by rectification or supplementary deed.