1. THE BEGINNING

The Bombay Public Trusts Act, of 1950 is the law that governs public trusts in the state of Maharashtra. In the state of Gujarat, too, there is a similar law with the same name. The Act was made when Maharashtra and Gujarat were one state. Since it became its state, Gujarat has made some changes to fit its own needs. But the laws in both states are pretty much the same. The Charity Commissioner is in charge of the trusts under the Bombay Public Trusts Act. People in the office of the Charity Commissioner are in charge of keeping an eye on, regulating, and managing public trusts. To ensure proper management and administration, every public trust has to register with the Charity Commissioner.

2. WHAT IT MEANS

Sec. 2(13): The term "public trust" refers to a formal or informal trust for either a public or charitable purpose, or both. It can be a temple, a math, a wakf, a church, a synagogue, an aviary, or any other religious or charitable endowment. It also includes a society registered under the Societies Registration that was set up for either a religious or charitable purpose, or both.

It is possible for a trust to be either private or public. The Indian Trusts Act of 1882 sets the rules for private trusts. They are used for private things like running a private land or organization. There are no tax breaks for private companies.

You can set up a public charity trust if you want to do good things for the public. This country does not have a rule that controls charity trusts at the national level. Some states have indeed passed laws like the Bombay Public Trusts Act, of 1950, which set up public charitable trusts.

A paper called a TRUST DEED is used to set up a trust. The information about the trust is all in this document, which is printed, written, or typed on plain paper. You would need to add a Rs. 100 non-judicial stamp paper to these papers. On these papers, all of the donors and witnesses will have to sign and leave thumbprints. To put it all together, you will need the help of a lawyer.

You might also need a paper saying that the owner of the land where the trust's main office will be located doesn't mind.

In the trust deed, the following things must be written:

Name and place of the Settler

List of the other trustees' names and addresses

Trust's name

Minimum and maximum number of trustees your trust can have

Name and address of the trust's main office

What the trust wants to do

How the trust works and what its rules are

To create a trust, you need at least two trustees, which means one owner and one other person. You can choose how many members there are, and that number must be written in the trust deed. The group of members is known as the Board of Members. The trust is run by this board as a whole.

All or some of the directors of a trust can be connected, which means they are from the same family. All trusts can work at the National level.

Unless it says otherwise in the trust deed, trusts can't be changed. In other words, the trust can't be ended.

Trustees are usually members for life, or the deed spells out how long they can serve. The election process has nothing to do with choosing trustees.

The Board of Trustees can also give trustees different names. The titles Chairperson and Managing Trustee are often used.

The trust fund cannot be used to pay the trustees.

The profits can't be given to the caretakers.

A secondary trust deed can be used to change a trust deed.

The goals of the trust are the most important part of the trust deed that you should read carefully. When you write down trust goals, you should be as detailed as possible so that everything goes smoothly.

At the time of registration, only the Settlor and two witnesses need to be in front of the Sub-registrar whose office the registered office address is registered with. The sub-registrar will check these people's IDs. The trust deed will then be taken to the counter where the data is entered. At the end, a picture will be taken of the Settlor and two witnesses. You will have to pay a fee of 1100 rupees. Rs. 100 will be the fee to register, and Rs. 1000 will be the fee to keep a record of the trust deed with the sub-registrar. The process is over now.

The register will give you a verified copy of the trust deed one week after you turn in the paperwork.

3. SETTING UP A TRUST

(i) Fill out Schedule II (the recommended form) and send it to the Asst./Deputy Charity Commissioner of the region. Attach a Rs. 100 court fee stamp.

(ii) The application must be sent within three months of the trust being set up.

iii. Documents to be registered: (a) a cover letter (b) Schedule II (the person signing the application must confirm and subscribe in front of the right authority)

(c) a verified copy of the trust deed or the statement of association and rules and regulations (if it's a club)

(d) a statement in the manner required.

(e) a letter written by the other trustees saying that the application trustee can act as their representative, finish all the registration paperwork, and get the certificate of registration.

(f) made entry fees based on how much the property is worth.