Setting up a charitable trust

Tashi Norbu Basi (Querist) 02 September 2014 This query is : Resolved
Can a company say ABC Pvt. Ltd. set up a Charitable Trust in its own name say ABC Charitable Trust.

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malipeddi jaggarao (Expert) 03 September 2014
A New Company can be set up under Section 8 of the Companies Act 2013. Please read the the gist of the section:

Section 8: Formation of companies with charitable objects, etc

As per Section 8(1a, 1b, 1c) of the new Companies Act, 2013, a Section 8 company can be established for “promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object”, provided it “intends to apply its profits, if any, or other income in promoting its objects” and “intends to prohibit the payment of any dividend to its members.”.

To register a section 8 company in India, the process is similar to the incorporation of other companies (except an additional license is required). The applicant looking to start a section 8 company is required to file Form INC-1 for name availability. Once the name is approved, there is a further requirement of obtaining a license for a Section 8 Company, for which Form RD-1 is to be filed in order to obtain a license for such company. After obtaining license number, applicant can proceed further to incorporate a company by filing e forms INC-7, INC-22 and DIR-12 or e-forms INC-7 and DIR-12 as the case may be.

Rajendra K Goyal (Expert) 03 September 2014
Yes, it can as advised by the expert malipeddi jagarao.

Advocate. Arunagiri (Expert) 03 September 2014
Yes the same name can be used for forming the trust under Trust Act.

Tashi Norbu Basi (Querist) 03 September 2014
Thank you for your answer. However my question is a bit different. What I want to know is whether a Private Limited Company can set up a trust or not? In other words, can a Private Limited Company be the Author/Settlor of a Trust or not?

My apologies for not framing the question more clearly.

malipeddi jaggarao (Expert) 04 September 2014
What are the activities of the proposed trust and what is purpose? If it for charitable purpose a Company incorporated under Sec.8 of Companies Act 2013 is similar to a trust.