Trust Registration by Sigma Solutions
Introduction
A group of dedicated philanthropists from Northeast India envisioned setting up a charitable trust to provide free healthcare services in underserved rural areas. They wanted a legally recognized and tax-compliant structure to attract donations and government support.
However, the founders faced challenges navigating legal registration, Trust Deed drafting, and tax exemption approvals. To avoid pitfalls and ensure smooth compliance, they partnered with Sigma Solutions to handle the entire Trust Registration process professionally.
Challenges Faced by the Founders
1. Confusion Between Trust, Society, and Section 8 Company
- Unsure which structure would provide:
- Simplified registration
- Tax benefits
- Ease of governance for charitable activities
2. Legal Documentation & Trust Deed Drafting
- Needed help preparing:
- A compliant Trust Deed covering objectives, governance, asset management, and dissolution policies
3. Trust Registration with Sub-Registrar Office
- Faced hurdles in:
- Documentation compilation
- Understanding Indian Trusts Act, 1882 requirements
- Managing delays at the Sub-Registrar Office
4. Tax Benefits & Compliance Setup
- Required support for:
- 12A and 80G certification for tax-free donations
- Obtaining PAN and GST registration for the Trust
5. Post-Registration Management & Fundraising Strategy
- Lacked clarity on:
- NGO financial transparency standards
- Audit readiness
- Strategies for CSR partnerships and government funding
Solution Provided by Sigma Solutions
Sigma Solutions delivered a comprehensive Trust Registration service, handling legal structuring, registration, tax exemption, and post-setup operational advisory to ensure the Trust could operate effectively and attract institutional donors.
Implementation Process
1. Legal Advisory & Trust Structure Selection
- Conducted consultations explaining:
- Differences between Trusts, Societies, and Section 8 Companies
- Advantages of a Charitable Public Trust: simple governance, tax benefits, and strong credibility
- Structured:
- Trustee roles, power delegation, and management principles aligned with Trust goals
2. Trust Deed Drafting & Legal Documentation Support
- Drafted a comprehensive Trust Deed including:
- Objectives focused on healthcare and rural welfare
- Governance model with minimum three trustees
- Financial handling and asset management clauses
- Dissolution mechanisms as per Indian Trusts Act
- Compiled:
- Address proofs
- Trustee identity proofs
- Trustee declarations
3. Trust Registration with Sub-Registrar Office
- Filed:
- Duly signed and stamped Trust Deed with the Sub-Registrar Office
- Witness affidavits and supporting legal documents
- Ensured:
- Legal compliance with Indian Trusts Act, 1882
- Obtained the Trust Registration Certificate within 15 days
4. Tax Exemption & Financial Compliance Assistance
- Applied for:
- 80G Certification (donors get 50% tax rebate)
- 12A Registration (Trust exempted from paying income tax on donations)
- Assisted in:
- PAN application for financial transactions
- GST registration for operational transparency if required
5. Post-Registration NGO Management & Fundraising Strategy
- Provided advisory on:
- Maintaining audited financial statements
- Annual ROC filings and Income Tax returns
- Building fundraising strategies via CSR platforms, crowdfunding, and donor partnerships
- Guided the Trust in:
- Applying for CSR-1 registration for corporate CSR funding
- NITI Aayog Darpan Portal registration for eligibility in government grants
Results Achieved
Outcome | Details |
Trust Successfully Registered in 15 Days | Official Trust Registration Certificate secured |
80G & 12A Tax Exemptions Approved | Donors eligible for tax benefits, enhancing donation inflow |
Clear Governance Structure Established | Transparent trustee management system setup |
CSR & Government Funding Eligibility Achieved | Trust eligible for CSR grants and welfare scheme funds |
Sustainable NGO Growth Path Created | Financial compliance and donor reporting frameworks built |
Conclusion & Key Takeaways
Setting up a Charitable Trust is a powerful way to deliver social impact while maintaining financial and legal credibility. However, the process requires precise Trust Deed drafting, legal registrations, tax compliance, and governance structuring.
Sigma Solutions provided complete advisory, registration, and compliance support, enabling the Trust to:
- Operate legally and transparently
- Access donor funding through tax exemptions
- Scale its healthcare initiatives for broader social impact
Key Takeaways:
- A well-drafted Trust Deed and compliance framework is critical for NGO success
- 80G and 12A certifications significantly enhance fundraising capability
- Post-registration compliance ensures long-term credibility and growth
Sigma Solutions simplifies the journey from vision to legal establishment
Related Services by Sigma Solutions
- Section 8 Company and Society Registration
- 80G and 12A Certification for NGOs
- FCRA Registration for Foreign Funding
- NITI Aayog Registration and CSR-1 Filing
- NGO Branding, Digital Presence & Fundraising Solutions
Other Case Studies
Client Testimonial
“We wanted to start a healthcare
trust but had no idea about legal formalities. Sigma Solutions made the entire
process easy, from trust registration to tax exemption approvals. Thanks to
their support, we are now providing free healthcare services to hundreds of
people!”
— Founders, Healthcare Charitable Trust – Northeast India