by ca ved mittal ved & associates. trust society section 8 company ( section 8 of new company...
TRANSCRIPT
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