Trust Registration
As per the Indian Trust Act 1882, a Trust is an arrangement where the owner (trustor) transfers the property to someone else (trustee) for the benefit of a third person (beneficiary). The trustor transfers such a property to the trustee along with a proclamation that the trustee should hold the property for the beneficiaries of the Trust.
Trusts can be classified into two categories:
Public Trust
It is a trust whose beneficiaries include the public at large. Further, a Public Trust can be further subdivided into Public Charitable Trust and Public Religious Trust.
Private Trust
A private Trust is the one whose beneficiaries include families or individuals.
Features of a Trust
- Indian Trusts Act, 1882 regulates and administers the private trusts in India, whereas the public trusts direct the functioning of public trusts except in the state of Maharashtra and Gujarat where public trusts are governed by Bombay Public Trusts Act, 1950.
- There is no upper limit for the trustees in a trust, but a minimum of two trustees are always required for registration. The trust deed should have provision concerning the management of the trust along with the procedure of appointing or removing the members.
- Government privileges and tax benefits are not available to a private trust, whereas public trusts after registration with the income tax can avail certain tax exemptions.
-
Documents required for Registration
- Trust Deed on Proper Stamp Value
- Identity Proofs
- PAN Card
- Address Proof
- Passport size photographs
- Proof of Registered office
- Utility Bills – The entries must be latest
- NOC from the owner of premises
Registration Procedures
- Name Selection: A unique name must be selected for the Trust, which shall not be identical or in similarity to existing Trademarks
- Select the Settlers and Trustees of the Trust: A minimum of two trustees is required to create a Trust. However, there is no bar on the maximum numbers of trustees that a Trust can have.
- Trust Deed: The Trust Deed should contain all the regulations and administrative instructions that will govern the Trust. A Trust Deed is legal evidence of your Trust’s existence. It is mandatory for the Trust Deed to be prepared on the Stamp paper. One must also pay a fee of Rs. 1100. Rs. 100 is the registration fee and Rs. 1000 are paid to keep a copy of the Trust Deed with a sub-registrar.
- Registration Certificate: After submitting the papers, one has to collect their certified copy of the Trust Deed from the registrar’s office. It is usually available within seven working days
