- A trust is a nonprofit corporation set up to undertake social welfare projects. In trust certain property or amount is set aside for the purpose of social welfare that is normally donated by the trustees. The trustees sign the trust deed and undertake to abide by the trust deed.A trust is established under the Trusts Act, 1882. For this type of trust, the three conditions of a creator, trustee and beneficiary being present, are unconditional requirements. A private trust would fail for uncertainty if the objectives are not clearly stated.
- The procedure for the creation of a trust is rather basic. A public and charitable trust can be created merely by a declaration to that effect on a non-judicial stamp paper of a value (which differs across provinces) stated in the Stamp Act. Registration is optional. The legal status of a trust is that some property is pledged to the benefit of a prescribed group of people. Only the actual declaration of this intent (the trust deed) is registered.
- There is no membership in a trust. Even if the trustees are inferred to mean the management, there is no lower or upper limit on the number of trustees. These details would depend on the terms on which the trust has been drawn up.
The application for registration of a public trust must contain the following:
- Particulars of documents creating the trust. Particulars of the trustees and the beneficiaries.
- Details of what the trust property is going to be. There is no minimum value of property for starting a trust.
- If the property is an immovable property then the transfer deed shall be on a stamp paper on the value of the property and it shall be registered.
- Preparation of the trust deed, that is, i.e. declaration of having created a public charitable trust.
A trust is a “’gift’ of property to a person or institution providing benefit to both parties,” and may be either a public trust, which benefits the public at large, or a private trust, which benefits individuals. Private trusts for public charity are governed by the Trusts Act, 1882. There is no law specifically governing public charitable trusts. However, a public charitable trust may register under one of the other registration acts.
The advantages to registering as a trust under the Trusts Act include:
- A high level of control over the administration and management of the NGO – there is a succession in place and there are no members;
- Very little to no interference from the outside;
- A simple registration procedure; Irrevocability; and
- Eligibility for income tax exemption.
Following are the list of documents you required for the registration of a Welfare Society.
- At least 8 to 10 members of trust/trustees. If you are registering Society then you need 25 members.
- You also need a land or money which you want to donate for the trust. Land is more preferable for the registration of Trust.
- An office with rent agreement/ownership papers of that land.
- Memorandum of Trust
- Article/Objective of trust in casino online short form and in detail
- CNIC of all members
- Affidavit from all members
Dissolution under the Trusts Act:
A trust is extinguished if:
- The purpose for which it was created is completed;
- The purpose becomes unlawful;
- The fulfillment of the purpose becomes impossible; or
- The trust is revoked
Want Register For Trust.