Trust

Trust/Non Profit Company

• Trust or a Non Profit Company can be registered under two categories in India
•  First and most common form is registering it under trust Act, second form is  registering it as private limited company under companies act, 2013

Features and Difference between both form of organization

Particulars	Trust	Non Profit Company
Incorporation	To be registered under the trust act	To be incorporated under the companies act, 2013
	Registration formalities are easy	Incorporation formalities are tedious, lot of documentation requirement
	Trust can be formed with one trustee member	Minimum two member is required to form a non profit company
	Cost effective ( stamp duty and registration charges as applicable in each state)	Costly affair (around Rs.10,000/-)+ Stamp duty as applicable in each state
Bank Account	Savings Bank Account or Current Account can be opened	Only Current Account can be opened
Powers of Trustee	As per written in trust deed	As per the Companies Act, 2013 & As mentioned in Article of Association
Annual returns	No Annual Returns to be submitted to any government body. Except Income Tax Return and in Case Foreign Currency inward Remittance approval under FCRA, Audit return to be submitted to Ministry of Home Affairs	Annual return to be submitted to Ministry of Company Affairs every year, Income Tax Return to be submitted and in Case Foreign Currency inward Remittance approval under FCRA, Audit return to be submitted to Ministry of Home Affairs
Audit	Audit becomes mandatory only on specific cases	Audit is mandatory for all companies
Addition or removal of trustee/ Member	Any new trustee to be added or removed new trust deed has to be prepared in the prescribed stamp paper and register it again	Addition and removal of members are easy at no additional cost
Advantage	Easy to incorporate and governance	1)Continuity of business, Separate Legal Status from the Members   2) Stringent law 3) An independent governing body monitor the working of the company
Disadvantage	1)No outside governing body to monitor the working of the trust.   2) No continuity in the organization. Any change in management has to be registered again	1) Higher operating cost compared to trust   2) Lot of documentation requirements
Our Professional Charges	Rs.3,000/-	Rs.10,000/-
Our Services	Drafting of trust deed	-DIN for proposed director   -Name approval- INC 1 -Govt approval to start a non profit organization as a private limited company -Incorporation forms INC-7,DIR-12,INC-22 -PANCARD -TAN

All govt charges will be collected on actual basis and bills from the govt organization will be provided to you. No hidden charges and no additional charges will be collected other than our professional charged mentioned above.