Trust/ NGO/ Section 8 Company/Foreign Company Rules - 12A/ 80G Exemption

A trust is an agreement in which one person (the "settlor") agrees to transfer property to another (the "trustee") who manages that property for the benefit of someone else (the "beneficiary"). The settlor must legally transfer ownership of the assets to the trustee of the trust.

NEW Trust/NGO Registration Documents Check list :

 

a) Name of the trust

b) Address of the trust

c) Objects of the trust(charitable or Religious)

d) One settler (person who is forming the trust) of the trust

e) Two trustees of the trust

f) Property of the trust-movable or immovable property (normally a small amount of cash/cheque is given to be the initial property of the trust, in order to save on the stamp duty).

 Prepare a Trust Deed on stamp paper of the requisite value (8% of the value of property of the trust in Delhi. The rate varies from state to state)

Requirement for registration of Trust Deed with the Local Registrar under
the Indian Trusts Act, 1882:

a) Trust Deed on stamp paper of requisite value (as stated on point no.2 above)

b) One passport size photograph & copy of the proof of identity of the settler with pan card and aadhaar Card

c) One passport size photograph & copy of the proof of identity, pan card and aadhaar Card of each of the two trustees.

d) One passport size photograph & copy of the proof of identity of each of the two witnesses.

e) Signature of settler on all the pages of the Trust Deed

f) Witness by two persons on the Trust Deed.

Go to the local registrar & submit the Trust Deed, along with one Photocopy, for registration. The photocopy of the Deed should also contain the signature of settler on all the pages. At the time of registration, the settler & two witnesses are required to be personally present, alongwith their identity proof in the original.

The Registrar retains the photocopy & returns the original registered copy of the Trust Deed.

Note: In the case of Rented, Rent Deed duly notarised with rent receipt and NOC form Land Lord on Rs 10/- Stamp Paper

Eligibility for 12A Registration

Only Charitable Trusts, Religious Trusts, Societies and companies that come under Section 8 are eligible for 12A registration. 12A registration is not applicable for Private or Family Trust.

Form 10A – Income Tax

Charitable Trusts, Religious Trusts, Societies and Section 8 Companies claiming exemption under Section 11 and 12 of the Income Tax Act, must obtain 12A registration. Private or family trusts are not allowed such exemptions and cannot obtain 12A registration. The process for applying for 12A registration and Form 10A filing has been made online only with the digital signature of the signatory. To obtain 12A Registration, an application in Form 10A for registration of charitable or religious trust or institution must be made online to the Commissioner of Income Tax along with the following documents.

Where the trust is created, or the institution is established, under an instrument, self-certified copy of the instrument creating the trust or establishing the institution;Where the trust is created, or the institution is established, otherwise than under an instrument, self-certified copy of the document evidencing the creation of the trust, or establishment of the institution;Self-certified copy of registration with Registrar of Companies or Registrar of Firms and Societies or Registrar of Public Trusts, as the case may be;Self-certified copy of the documents evidencing adoption or modification of the objects, if any;Where the trust or institution has been in existence during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of the trust or institution relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up;Note on the activities of the trust or institution;Self-certified copy of existing order granting registration under section 12A or section 12AA, as the case may be; and Self-certified copy of order of rejection of application for grant of registration under section 12A or section 12AA,as the case may be, if any.

Documents Required for 12A Registration

The following documents must be submitted by the 12A registration applicant in Form 10A:

Certified copy of the instrument under which the trust/institution was created/established, if applicable Certified copy of the document evidencing the creation of the trust or the establishment of the institution, if applicable Certified copy of registration with RoC/Registrar of Firms & Societies/Registrar of Public Trusts, whichever applicable Certified copy of the documents evidencing adoption or modification of the objects, if any Certified copy of the annual reports of the trust/institution for a maximum three immediately preceding financial years, if applicable Note on activities Certified copy of existing order granting registration under section 12A or section 12AA, if any.Certified copy of order of rejection of application for grant of registration under section 12A or section 12AA, if any.

The Income Tax Department has passed a notification on 19th February, 2018 with respect to the updated procedure for applying for 12A registration.

Procedure for Obtaining 12A Registration

Once, the application is submitted in the required format online, the Commissioner will request the applicant to submit additional information or documents, as the Commissioner sees fit. The request for additional information or documents would be to satisfy the Commissioner as to the genuineness of the activities of the Trust or Institution.

If the Commissioner is satisfied with the application, then he/she will pass an order in writing registering the Trust or Institution under 12A of the Income Tax Act. In case the Commissioner is not satisfied with the application, then he/she can also pass an order in writing refusing to register the Trust or Institution.

On average, 12A registration take 1 to 3 months in India. However, once a Trust obtains registration, its is valid for the lifetime of the Trust and there is no requirement for renewal.

Process of Obtaining 80G Registration

Registration under this section will be processed by the Commissioner of Income Tax after receiving an application from the applicant in Form 10G. The application should be accompanied by the following documents:

Registration Certificate MOA /Trust Deed NOC from the proprietor of the land where the registered office is situated.Copy of the Pan Card of the Trust/Institution.Copy of electricity bill, house tax receipt, or water bill Proof of welfare activities pursued Progress Report since the foundation of the NGO or for the previous 3 years The statement of accounts and balance sheet since the foundation/previous 3 years List of contributors along with their address and PAN.List of governing body of trustees with their contact details Copy of registration granted under section 12A or copy of notification issued under section 10(23)or section 10(23C)

Issue of Certificate

On receipt of the application, the Commissioner may pass a written order which would effectively register the trust/institution under Section 80G of the Income-tax Act. The Commissioner is also entitled to demand further documents from the applicant if the need for the same is felt, or reject the application. The registration accorded to the trust will be valid for a period of one-three years.

CSR Documents List Trust :-

*Documents required :*
1) Latest 80G, 12AA, 35AC approval
2) CBDT Approval letter
3) Trust deed
4) Trust registration - charity commissioner
5) FCRA
6) SIRO
7) List of trustee
8) Trust profile and activities
9) Project details present and future
10) Bank  details
11) Approved project details
12) PAN CARD
13) Latest balance sheet, income and expenses account, auditors report,
14) Latest ITR acknowledgement.
15)Bank receiving capacity letter.

 

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FOREIGN COMPANY REGISTRATION IN INDIA DOCUMENTS CHECK LIST

 

The following documents are mandatory for Foreign Nationals for incorporation of company in India:

 

1) Passport

2) Residential Proof

The following documents are acceptable residential proof:

• Bank Statement

• Electricity Bill

• Telephone Bill

• Mobile Bill

 

NOTE- ALL DOCUMENTS SHOULD BE LATEST AND NOT MORE THAN 1 MONTH OLD

 

3) Address Proof

The following documents are acceptable address proof for Foreign Nationals.

• Driving License

• Residence Card

• Bank Statement

• Government issued form of identity containing address.

 

4) Registered Office Proof in India

5) In case one of the shareholder or subscriber to the MOA and AOA is a Corporate Entity (Company, LLP, etc.,), then Certificate of Incorporation of the Body Corporate must be attached along with the resolution passed by the Body Corporate to subscribe to the shares of the company under incorporation.

 

6) Other Information Required:

 

· Email ID;

· Phone Number;

· Educational Qualification along with certificates;

· Father’s Name;

· Occupation;

· Nationality;

· Place of Birth.

 

Foreign Investments in Indian Companies are regulated by FEMA Guidelines and the Reserve Bank of India. Whenever the holding company invests funds in the share capital of the Indian subsidiary, it has to follow RBI guidelines along with compliance under Companies Act 2013.

 

NOTARIZATION REQUIREMENT:

 

1) In case the document is in a foreign language, then it must be translated by an official translator and notarized or apostilled.  

2) Where subscriber to the memorandum (Shareholders) is a foreign national residing outside India, in a country in any part of the Commonwealth, his signatures and address on the memorandum and articles of association and proof of identity shall be notarized by a Notary (Public) in that part of the Commonwealth;

 

3) Where subscriber to the memorandum (Shareholders) is a foreign national residing in a country which is a party to the Hague Apostille Convention, 1961, his signatures and address on the memorandum and articles of association and proof of identity shall be notarized before the Notary (Public) of the country of his origin and be duly apostilled in accordance with the said Hague Convention;

 

4) Where subscriber to the memorandum (Shareholders) is a foreign national residing in a country outside the Commonwealth and which is not a party to the Hague Apostille Convention, 1961, his signatures and address on the memorandum and articles of association and proof of identity, shall be notarized before the Notary (Public) of such country and the certificate of the Notary (Public) shall be authenticated by a Diplomatic or Consular Officer empowered in this behalf under section 3 of the Diplomatic and Consular Officers (Oaths and Fees) Act, 1948 (40 of 1948) or, where there is no such officer by any of the officials mentioned in section 6 of the Commissioners of Oaths Act, 1889 (52 and 53 Vic.C.10), or in any Act amending the same;

 

5) If the Passport does not contain the date of birth of the holder, then an additional document indicating the date of birth of the Director must be provided, duly certified or attested or notarized or apostilled.

6)  Need at least 5 sets of apostilled or notarized documents hard copy through a registered post.

 

 

 LIST OF DOCUMENTS FOR INDIAN DIRECTOR-

1) PAN

2) ADHAAR

3) PHOTO

4) EMAIL ID AND PHONE NO

5) LATEST BANK STATEMENT

6) EDUCATIONAL QUALIFICATION ALONG WITH CERTIFICATES

7) EMPLOYMENT STATUS

8) SINCE HOW LONG HE/SHE IS STAYING AT PRESENT RESIDENTIAL ADDRESS

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