A Trust is registered as A Non-Government Organization which is governed by the Indian Trust Act of 1882. Generally, Trust defines as an arrangement by which property is handed over to or vested in a person, to use and dispose of for the benefit of another person”. Trust Formation can be classified into two methods first is Private Trust formation which is created for the benefits of the particular group of individuals known as beneficiary and the second is public trust formation which is created for the benefit of the general public.
In India Trust can be created by anyone who is competent to contract, having in his/her power any property with is transferable. The person who is creating the Trust is called the Settlor and the person to whom the property is transferred to trust is called a Trustee. The person for whose benefit the property is transferred is called the beneficiary.
In India trust can be registered within 7 to 10 days after filling the Application form of Trust Registration work feasibly.
- Self Attested Copy of PAN Card of all Trustee and settler along with witness
- Self Attested Voter Id/ Aadhaar of all Trustee and settler along with witness
- 4 Passport Size Photographs of all Trustee and settler along with witness
- Latest Electricity Bill for Registered office of the Trust(Required Rent agreement or lease deed if the property is not in the name of partners)
- Capital Contribution
- Name of Trust
- Object of trust
Important Points on Trust Registration in India
PRIVATE VS PUBLIC TRUST-Trust formation can be classified into two methods first is private trust formation which is created for the benefits of the particular group of individuals known as beneficiary and the second is public trust formation which is created for the benefit of general public.
TRUST DEED- In the formation of public charitable trusts, having the most important instrument is the Trust Deed, and it is important because the aims and objectives of the trust must be specified in the trust deed. And the Trust Deed should be signed by the settlor and trustee Both in the presence of two witnesses
The Number of Trustees- Minimum of Two Trustees are always required whereas There is no upper limit for the trustees for registration.
TAX BENEFIT- Public Trust after registration with the Income Tax can avail tax exemptions. whereas Private Trusts, not having tax benefits and Privileges.
Steps For Register The Trust
- Preparation of the Trust Deed:
- Parties to the trust:-Three parties are required to form the Trust.
- Applicant /Author of the trust:
- Details of trustees /Members:
- The beneficiary of the Trust:
Objects of the Trust
- Subject matter:
- Registration of the trust by Trust Deed:
- Address for correspondence & Evidence:
- Tenure of Trustees:
- Application for 80G and 12A certificate for tax benefits.
Trust Deed Registration
The Trust Deed must be executed on Stamp Paper of suitable value and which is signed by the settlor and two other witnesses. And Once the Trust Deed is executed, it can be registered with the Local Registrar. The Registrar would then register the Trust, retain a photocopy of the Trust deed and return the original registered Trust Deed back to the settlor.
The Trust Deed is the document that establishes the registration of the Trust. To register a trust deed required details are-
- Name of the Trust
- Place of the Trust office
- Objects of the Trust
- Number of Trustees
- Terms of the Trustees
- Management of the Trust
- Appointment or Resignation or Termination of Trustees
- Power, Function, and Duties of the Trustees
- Application of Trust Property
- Other important matters
Minimum Two trustee are required in a Trust.
The Trust registration process can be done within period of 8 to 10 days.
Trust deed is important that aims and objectives of the trust should be specified in the trust deed..
The instrument by which trust is formed is called as Trust Deed.
The different types of trust are given below:
Asset Protection Trust
Special Needs Trust
Tax By-Pass Trust(/ul)