Trust Formation
Sanjay
(Querist) 21 April 2011
This query is : Resolved
I would like to get in touch with a person who can help me create a trust.
Also advice if registering under trust act registration under comanies acti is beneficial.
Need help to create a entity to do charitable activities.
Am in Koper Khairane, navi Mumbai. Anyone in the vicinity may please contact me.
BALAJI S N
(Expert) 22 April 2011
Dear Sanjay,
IN response to you query, you may register under Trust ACT, which falls under Sec.25 companies (non profit organisation)
With Regards
BALAJI
BA LLB (CS)
9840265084
Anil Kumar-Advocate
(Expert) 22 April 2011
Dear Sanjay,
I have gone through your quary. In this context it appears to me that you have not decided fully whether you will go for Trust or Company registered under s.25 of the Companies Act 1956. Second- you have not mentioned the type of Charity work to be undertaken under the trust/Co.'s Act.Please furnish the same along with details persons involved therein.Their previous experience, income, etc.On receeipt, you will get every thing.
malipeddi jaggarao
(Expert) 22 April 2011
Please see the attachment. YOu will understand what to do and how to do.
Sanjay
(Querist) 23 April 2011
Sir, I thank all of above for their valuable inputs.
My main request to all - is to contact a person who can help me give advice on the following :-
I want to create a charitable trust mainly in education and medical help to needy.
I want to create by investing a small corpus and later collect donations from various members either through membership or through donations and help the needy.
I also have an idea of creating a small amsd micro business which employs needy people and the revenue will again be ploghed back for the education, medical and upliftment of the needy. For this, I want to know :-
a) between trust and company which is easier to be formed and requires lesser efforts and time.
b) between trust and company which is easier to be created and get the procedures easily done of registration
c) between trust and company which is easier to manage in long run
d) can a trust carry out business activities, if so how, does it have to create a company separately for it and run the company under its administration or can the trust itself set uop business and run the same directly
e) assuming the trust does not do business then which is better and easier to register and manage - trust or company
f) would anyone of you be a guide and mentor to me and help me in my goal - I live in Koper Khairane, Navi Mumbai, Maharashtra
M V Gupta
(Expert) 23 April 2011
Thanks Mr. Jagga Rao for a very comprahensive write up on the formation of NGOs.
Mr. Sanjay, formationof a trust is easier than formation of a charitable Company. Gnerally a public charitable trust or company does not undertake any business activity. But there is no legal prohibition on such activity provided it is for the benefit of the public. Ex: Establishment of Hospitals.
