Trust Registration & NGO Registration Service in Karachi, Islamabad, Rawalpindi, Lahore & Rahim Yar Khan, Pakistan
Trust Registration & NGO Registration Service in Karachi-Islamabad, Rawalpindi, Lahore & Rahim Yar Khan By The Largest Legal Network of Pakistan
Trust Registration & NGO Registration are being offered by us in Karachi-Islamabad-Rawalpindi-Lahore, Pakistan. Process of NGO/Trust Registration and requirements for NGO/Trust Registration are mentioned hereunder:
Laws For the Registration of Charitable Trusts
Requirements For Registration of a Charitable Trust
For the establishment of a charitable trust, three prerequisites must be fulfilled: the creator, trustee, and beneficiary. Failure may occur if the trust’s objectives are not clearly defined, causing uncertainty. Public charity trusts serve the greater good or a specific portion of society. While public law governs these trusts, they differ little from private trusts. Unlike private trusts, though, charitable trusts endure as long as their charitable purpose remains, irrespective of their specific aims.
Conditions of a Trust
To establish public trust, the following criteria are essential:
- Trust property must exist, whether in cash or capital assets (land or buildings).
- Charity or social benefit must be the objective of the trust
Therefore, in order to be valid, a trust must satisfy these conditions or ‘certainties.’ However, this is not the case for public charitable trusts. In charitable trusts, as in private trusts, certainty as to the intention to declare a binding trust and the certainty as to the assets to be bound by the trust are strictly required. While a private trust would fail for lack of clarity if the beneficiaries are not clearly specified, a public charitable trust could be sustained even if the beneficiaries are not specified, provided the trust has a general intention of charity.
It is possible to create a trust for any lawful purpose, which may be revoked at any time. Private acts of public charity are covered by the Trust Act, which gives the creators of the trust great flexibility in how they operate. All areas of Pakistan are covered by the Trust Act and any group can benefit from it.
Advantages of Charitable Trusts
Charitable trusts play a vital role in addressing social and humanitarian issues in Pakistan. These trusts, established for philanthropic purposes, offer a range of advantages that contribute to the betterment of society.
Promoting Social Welfare:
- Under the umbrella of charitable trusts, various initiatives are undertaken to promote social welfare in Pakistan. These trusts engage in activities such as providing healthcare services, education, poverty alleviation, disaster relief, and women empowerment. A charitable trust’s focus on these critical areas can greatly improve the well-being of underprivileged communities and society as a whole.
Tax Benefits:
- One of the notable advantages of charitable trusts in Pakistan is the tax benefits they offer to donors and contributors. The government provides tax incentives to individuals and corporations who make donations to registered charitable trusts. These tax exemptions not only encourage philanthropy but also enable charitable trusts to receive substantial financial support, which further fuels their social impact initiatives.
Trustworthy and Transparent Mechanisms:
- Charitable trusts in Pakistan are required to adhere to strict regulatory frameworks, ensuring transparency and accountability in their operations. They are subject to regular audits and are obligated to maintain accurate financial records. Such mechanisms inspire confidence among donors, who can be assured that their contributions are being utilized effectively for the intended charitable purposes.
Collaborative Approach:
- Charitable trusts often collaborate with government agencies, non-profit organizations, and other stakeholders to address societal challenges collectively. This collaborative approach allows for the pooling of resources, knowledge, and expertise, leading to more impactful and sustainable initiatives. By working in partnership, charitable trusts can leverage their influence and make a substantial difference in areas that require urgent attention.
Long-Term Sustainability:
- Charitable trusts are designed to ensure the long-term sustainability of philanthropic efforts. Unlike individual donations or short-term projects, these trusts have a dedicated structure and governance that enables them to continue their charitable activities even after the initial founders or donors are no longer involved. This longevity ensures that the impact of charitable trusts extends beyond immediate interventions, creating lasting positive change in communities.
Charitable Trusts Serve as Catalysts for Social Development
Charitable trusts in Pakistan serve as catalysts for social development and have numerous advantages for both society and donors. Through their focus on social welfare, provision of tax benefits, trustworthy mechanisms, collaborative approach, and long-term sustainability, these trusts have the potential to address critical issues and transform lives. By supporting and encouraging the growth of charitable trusts, Pakistan can foster a culture of philanthropy and make significant strides towards a more equitable and prosperous society.
Elements of the Trust:
There are the following elements of a trust:
- Author of the trust:
The “author of the trust” is the one who reposes or declares the trust:
- Trustee:
An individual who accepts the confidence is called a “trustee”:
- Beneficiary
The person who benefits from the confidence is called the “beneficiary”:
- Trust Property or Trust Money
“Trust-property” or “trust-money” is the subject matter of the trust
- Beneficial Interest
The beneficiary’s “beneficial interest” is his legal claim against the trustee as owner of the trust-property
- Instrument of the Trust
An instrument declaring a trust is referred to as an “instrument of trust”:
Creation of The Trusts
Lawful purpose
Any lawful purpose may be used to create trust. The purpose of the trust has to be lawful unless it is
- Forbidden by law,
- Of such a nature that, if permitted, it would defeat the provisions of any law,
- Fraudulent,
- Involves or implies injury to the person or property of another,
- The Court regards it as immoral or opposed to public policy.
Trusts with unlawful purposes are void.
It is considered void when a trust is created for two purposes, one of which is lawful, the other unlawful, and the two cannot be separated.
Trust of immovable property
A trust relating to movable property cannot be valid unless it is declared by a non-testamentary instrument in writing signed by the author or trustee and registered, or by a will.
Trust of movable property
A trust over movable property is only valid if declared as aforesaid, or if the property is transferred to the trustee.
Trust Deed
The author of a trust creates a trust if, by any words or acts, he or she indicates with reasonable certainty:
(a) an intention on his part to create thereby a trust,
(b) the purpose of the trust,
(c) the beneficiary, and
(d) the trust-property, and (unless the trust is declared by will or the author of the trust is himself to be the trustee) transfers the trust-property to the trustee.
Who can create trusts?
A trust may be created
(a) By every person competent to contract, and
(b) With the permission of a principal Civil Court of original jurisdiction, by or on behalf of a minor;
Subject of trust
The Subject-matter of a trust must be property transferable to the beneficiary.
Who may be the beneficiary?
Beneficiaries may be anyone who is capable of holding property.
Who may be a trustee?
Trustees maybe anyone who is able to hold property. However, if the trust involves discretion, the trustee must be competent to contract to execute it. Trusts are not obligated to be accepted.
Trustee to execute the trust
The trustee is bound by the purposes of the trust and by the directions given by the author at the time of its creation, except as modified by the consent of all the beneficiaries. For the purposes of this section, where the beneficiary is incompetent to contract, his consent may be granted by a principal Civil Court of original jurisdiction. Note that nothing in this section requires a trustee to obey any direction when to do so would be impracticable, illegal, or manifestly harmful to beneficiaries.
Declaration of Trust
The author can also create a trust in which they will hold the property as trustees, but not as owners, thus eliminating the need for a property transfer. In such a situation, the declaration of trust must be by the owner, and he alone should be the trustee. Such a declaration would, however, need to be registered under the Registration Act.
Types of Trust
Trusts can be of two types:
- Private
- Public.
A private trust benefits an individual or group of individuals, their descendants, or any legal person who is capable of holding property. Public trust is one whose purpose is to benefit the public or any section of the public.
Process of Creation of Trust in Pakistan
There are two ways to create a trust for immovable property. The first case involved a testamentary instrument; the second was non-testamentary. A trust relating to an immovable property cannot be created orally; it must be created through a duly registered document. A trust of movable property can be created either with a document or by delivering the property to the trustee with any necessary oral instructions. By giving directions in writing, it would constitute a trust by a non-testamentary document that may or may not be registered.
Dissolution under the Trusts Act:
Trusts are extinguished if:
- The purpose for which it was created has been achieved;
- This becomes unlawful;
- When the goal cannot be achieved; or
- The trust is revoked
DOCUMENTS REQUIRED FOR TRUST REGISTRATION
Following are the required documents for the registration of a trust.
- MEMORANDUM OF ASSOCIATION: Contains Name of the Trust, Address of the Trust’s main office, Objectives of the Trust, and Authors of the Trust Schedule
- TRUST DEED (on 2000/ Rupees Stamp Paper
- AFFIDAVIT
- Attested copies of CNICs or Passport
- PROOF OF THE REGISTERED OFFICE ADDRESS
- N.O.C / RENTAL AGREEMENT
- AFFIDAVIT ON SCHEDULE-III (NO LEGAL PROCEEDING/ NO CRIMINAL RECORD)
- Bank Challan of Rs.10,500/- (rupees Ten Thousand Five Hundred only).
- Any other documents as Assistant Director or Director may require.
- Picture of Trustee or Author along with Sign and Thumb Impression must be fixed in the current deed and green paper shall be used for the registration of the deed.
- Authority Letter of a Person ( who is responsible for the registration matter of Trust)
- Pro forma for Trust
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