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Trust Registration

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Trust Registration

Adopt the convenient method for charity.

Most convenient way of starting a non-governmental organization or NGO.

A trust functions on the objective of eradicating poverty, providing education to the underprivileged and offering medical relief apart from the generalized aim of promoting arts, science and literature.

trusts are irrevocable which means they cannot be amended or terminated without the permission of the court.

The Indian Trusts Act, 1882

defines trust as being a legal obligation annexed to the ownership of property. And arising out of a confidence reposed in the trustee by the settlor, for the benefit of the beneficiaries as identified by the settlor including/excluding the settlor himself. The person who declares the confidence is called the “author of the trust”. The person who accepts the confidence is called the “trustee”. The person for whose benefit the confidence is accepted is called the “beneficiary”. And the subject matter of the trust is called “trust property”. The “beneficial interest” or “interest” of the beneficiary is the right against the trustee as owner of the trust property and the instrument, if any, by which the trust is declared is called the “instrument of trust”.

The property in case of a trust is not transferred directly to the transferee but is put in control of the trustee for the benefit of the transferee. The trustee, depending upon the nature of the trust, either transfers the property or its earnings to the transferee at the happening of certain events or applies the property and /or its gains for the benefit of such a transferee.

Experience the trust

trust, Trust Registration

Benefits

Government approved formal and organised structure

  • Asset Protection
  • Tax Planning
  • Confidentiality
  • Avoiding Forced Heirship
  • Estate Planning
  • Protecting the Weak
  • Preserving Family Assets
  • Continuing a Family Business
  • Gaining Flexibility

Procedure

Decide objectives, submit papers and get the trust.

  • The first step is to draft the Trust Deed. Trust Deed is non-mandatory but always preferred. The details mentioned in Deed are:
  • The Settler’s Name and address
  • Name(s) and address(es) of the other Trustees
  • Trust’s Name (minimum 3 preferences shall be given)
  • Minimum and maximum number of Trustees that are allowed
  • Address of the Registered Office of the Trust
  • Objectives of the Trust
  • Beneficiaries of the Trust
  • Rules and Regulations to be followed by the Trust
  • Address for correspondence & Evidence: recent electricity bill/ telephone bill/ property card of the Trust location.
  • Tenure of Trustees: Tenure may be fixed as minimum 1 year to maximum 5 years.
  • Application for 80G and 12A Certificate
  • Approach a Local Registrar & submit the Trust Deed, along with one photocopy for Trust Registration. The physical presence of Settler/s and two witnesses is required at the time of Registration along with Original ID proofs.
  • The Registrar retains the photocopy & returns the original registered copy of the Trust Deed.

Documents required

Papers to trust, for a trust.

  • A completely drafted trust deed
  • Proof of registered office – (Rental Agreement or ownership document)
  • ID proof of the Founder of the Trust
  • Two witnesses

Once the payment for the registration is done, it takes about 8 to 10 days for online registration to be completed under the Indian Trust Act – 1882. Before the deed becomes valid throughout the country, the settler has to deliver a presentation at the registrar’s office.

Note: On the scheduled date for registration, the Author of the Trust shall be present in the Register Office for registration.

How LawDocs can help?

A public trust, with trust.

  • Discuss and help you decide objectives.
  • Assist you in deciding the type of formal structure.
  • Helpful assistance for the noble cause.
  • Trusted experts for the registration of trusts.
  • We help you to file compliances as well.

Prices start with 6499/- (inclusive all)

FAQs

The Trustees do not have the right to sell the property, however, the trust properties can be sold after obtaining prior permission from the appropriate civil court.

Based on the cause and objectives, NGOs can be registered online as Trust or Section 8 companies.

Yes. Government employees or officers can be part of NGOs, provided the NGO is not working towards any anti-government activities or programmes. The intended members should ensure the particular organization is not profit making and that its members do not draw any salary from the NGO.

The trust is usually irrevocable in nature. For reasons like disqualification of trustees, absence of trustees, mismanagement of the trust. The trust can be merged with a trust having similar objective with the permission of the court.

There is no specific certificate for a trust registration. On the other hand, getting the trust deed registered with the appropriate authorities would suffice.

  • As per the Public Trust Act of all states, registration of Trust is mandatory if it involves charitable purpose or when there is a transfer of immovable property in the name of the trust.
  • Only registered trust is eligible for tax exemptions provided under Section 12 A and 80G of the Income Tax Act.
  • Registering a trust adds more credibility to the same as it involves public money in the form of donations.
A trust shall after its registration shall do the following
  • Obtain PAN card
  • Book Keeping and Accounts
  • Annual IT filings
  • Shops and Establishment License – in case of employment
  • Professional Tax Registration – if applicable
  • GST registration – if applicable

There is a general notion that trust need not have to pay tax as they work towards the welfare of the public at large. But this is not true. A trust, like any other legal entity, is liable to pay tax. In order to be exempted from tax, trust is required to obtain certification for the said exemptions such as Section 12 A, 80G etc. from the Income Tax authorities.

The Trust constitutes the Board of Trustees. The Board constitutes the following:
  • Author/Founder/Settlor of the trust
  • Managing trustee(s)
  • Other trustees

The quorum of the Board of Trustees shall not exceed a maximum of 21 members.

The trust deed is the primary and the most essential document of the trust which states the reason for forming a trust, its functions, to its working, and until its closure. Following are the important clauses in the Trust Deed:

  • Name of the trust
  • The registered office of the trust
  • Area of operation of the trust
  • Objectives of the trust
  • Details of the Author of the Trust
  • Corpus/Assets of the Trust
  • Details of the Board of Trustees
  • Quorum of the Board with their qualification, terms and tenure
  • Powers and functions of the Managing Trustee and other Trustees
  • Closure and amendment of the trust deed and the applicability of the Act

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