The section 8 enables the government to register any association with charitable objectives such as to promote sports, commerce, art and culture, education, research etc as a limited company, without adding the words ‘Pvt. Ltd.’ The income of the Company must be used to promote the charitable object only. The central government provides a license to all such companies and also informs them about some restrictions and conditions. In case they fail to fulfill these, the central government may also order them to wind up the company. In case fraudulent objectives of the Company are proved, legal action will be taken against all officers of the Company.
The trust deed should clearly spell out the aims and objects of the trust, how the trust should be managed, how other trustees may be appointed or removed, etc. The trust deed should be signed by both the settlor/s and trustee/s in the presence of two witnesses. The trust deed should be executed on non-judicial stamp paper, the value of which would depend on the valuation of the trust property.