A trust can be created by executing a trust deed, there are two types of trust. A public trust and a private trust. A public charitable trust should be formed only when you want to make a donation of property in perpetuity and the trustees desire that this property be used only for specific charitable purposes with strict control by the original trustees / trustees. A private trust is created for the benefit of a particular group of individuals known as the beneficiary.
Trust is belief and trust in integrity, trust is established by a deed of trust on non-judicial stamp paper that is worth a percentage of the value.
Funds can be borrowed to a great extent by issuing the debentures. More likely, Company raises funds by shareholders as well. The Banking and Financial Organizations are more likely to assist a Private Limited Company rather than other forms of business.
The liability of the shareholders is limited to their shareholding. Limited liability means the state of being legally responsible only for a limited amount for the debts of a company.
However, many states do have the Public Trusts Act. In most states, there is no law governing Public Charity Trusts in India. A charitable trust can help the development of societies.
According to the law in the Company Act, 2003 in order for any company to be registered in India, the below conditions have to be met.
Two trustees:
A minimum of two trustees is required to register a public charitable trust.
Registered Office:
The registered office of a company does not have to be a commercial space. Even a rented home can be the registered office, so long as a NOC is obtained from the landlord.
Unique purpose:
The name of trust must be unique.
Stamp paper:
Trust Deed on stamp paper of the requisite value
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