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| Trust Formation |
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| PROCESS OF FORMATION OF TRUST |
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| Formation of Charitable Trust |
- A charitable organization is ordinarily formed by way of the trust, or a company limited by guarantee under section 25 of the Companies Act, 1956 or a society under the Societies Registration Act, 1986. A trust can be oral but for recognition as a charitable institution, it should be in writing and conform to the provisions of the Indian Trust Act, 1882. A valid Trust has to have three certainties:
- Property
- Objects
- Beneficiaries
- A trust could be private trust or a public trust depending upon the beneficiaries, whether specified individuals or general public
- The trust should have at least two trustees for formation of a trust;
- The corpus of the trust should be identified;
- Drafting of trust deed
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