Coverting from Society to trust

Partner/Advocate

My friend is running a computer service training institute. His business is registered under the Tamil Nadu Societies Registration Act. Now he wants to convert it into a trust in order to provide free education to some poor people in his locality.

 

What is the procedure to do so...???

Thanks in advance.

 
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Advocate & Legal Consultant

In Maharashtra, all charitable societies/institutions, upon registration under Society Registration Act, automatically get registered under the Bombay Public Trust Act.

Please, consult local/jurisdictional registration office.

Why, your friend wants to convert to trust. There is nothing under the Society Registration Act to prohibit imparting free education/trust.

 
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Advocate High Court Madras.

You need not convert the society into a trust. The society can do all the acts of TRUSTS. Free education and other welfare activities can be executed under the society itself.

 
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Advocate & Solicitor

A Very Thin Line of Difference is there in between Charitable Society and Charitable Trust.

By Converting Society in Trust you will make it more accountable and you will get more benefits in Income tax.

In Maharashtra It automatically get registered as Trust after 2 month form regiistration of Society.

Maharashtra Trust it is governed by Bombay Public Trust Act, and Rules thereunder AND Societies are by Society Registration Act.

Pls Confirm the applicable laws as applicable in case of Tamil Nad.

Regards,

Chirag Shah.

 
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research Scholar

Originally posted by :Karl Jacob
" My friend is running a computer service training institute. His business is registered under the Tamil Nadu Societies Registration Act. Now he wants to convert it into a trust in order to provide free education to some poor people in his locality.
 
What is the procedure to do so...???
Thanks in advance.
"

In Karnataka there is a large difference between society and Trust. Because the societies are registered under the Societies Registration Act and Trusts are registered either under the Indian Trust Act or Bombay Public Trust Act(which is no more at present). Here is the difference between Society and Trust under Karnataka Laws

 
Society Trust
District Registrar and Registrar of Societies is competent authority to register. Trust deed can be registered in Office of the Sub Registrar.
Aims and objectives are for the development/welfare of the whole society without restriction There are two kinds of Trusts. Public and Private. The latter is a private trust for the beneficiaries.
Minimum of 7 persons are required to form Society. Any body can form Trust without restriction as to the number of persons.
Executive committee runs it. Managing trustee runs it.
Executive committee manages, subject to approval of general body. Management is under the control of management of Trustees and Managing Trustees.
Accounts shall be filed to the Registrar of Societies. Does not apply.
There is provision to admit members. Does not apply.
In order to cancel an association action can be taken only after enquiry under Sec.27 Author of Trust can cancel Trust if he so wishes. If the provision is made in the deed.
Profit cannot be distributed among the members. It can be used only for development of society. Trustees cannot share. Beneficiaries may be allowed to use the profit.

Moreover the High Court of Karantaka in its judgment wayback 1978 itself held that the properties of the Society cannot be transferred to the trust and society cannot convert itself in to a trust.

To convert society in to a trust, a special governemt order is required in Karnataka. Moreover if the society is running an educational institution it has to comply with the provisions of Karnataka Education Act 1983 along with the other formalities. The conversion without obtaining the Government permission nullifies the transfer of the properties of the society.


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job working as General /manager H R

Dear Sir

I am from Gujarat Rajkot and going to form family trust for construction of  family temple ,in this regards, can you please suggest and guide me which type registration is better for us whether under  A ?  E?  or F ? 

 

From 

Hiteshkumar Joshi 

9824214757

hitraj29@yahoo.com

 
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Dear sirs,

My father runs a school in rajasthan& wants to change it from society to trust.

what would be the procedure? kindly suggest

 
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medical practitioner &legal studies

In West Bengal societies registration act  there must be a benevolent attitude to serve public at large and not for private purse or for benefit of members. Minimum seven members  and there may be a govt nominee.i am running a hospital charitable and aided by govt to some extent.before forming an association pl go through the rules and regulations.eachyr you will have to submit audit report and renew .this is an NGO.and not a private organist ion .dr sc pratihar!br

 
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we are having a trust registered under Karnataka Societies registration act. have also got certificate under section 12AA of Income Tax act, 1961 in Hubli, Karnataka. Now we want to shift its registration to Delhi. So, whether it can be possible? whether we have to register it again in Delhi? please tell me the procedure.

Thanks.

 

 
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I have a West bengal society regd computer tratining centre and have a pan card satus on association of person, wheather this society can be converted to a trust?  if so what will be process and steps needed.. pls tell me about this tnk u ,,

 
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