Trust Registration In India

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Trust registration in India - An overview

Trusts are created to focus on the development of sciences, literature and other noble causes like relieving scarcity, consenting education to the needy , and giving medical support. It is mandatory to complete trust registration in order to complete the whole process without any hassles.

Since the trusts are irreversible, they cannot be shifted or cancelled without the court's permission. Trust registration may seem like a very long process. But with Barrister Babu the Whole registration process can be simplified and completed in just a few steps. With a few benefiting papers, such as a deed of trust and rental agreement, Barrister Babu can complete trust registration.

 

Steps to Register a Trust

The trust registration can be done online through Barrister Babu by following a few simple steps. The trust's creator, also known as the ‘Author of the Trust’ or the ‘Settlor of the Trust’ is required to establish in writing the trust's aims and the process by which its trustees will strive to accomplish the goals. This is the first step in registering the trust. The document that contains all of these specifics is known as a trust deed, often known as a deed of trust.

Following this, a trust deed and an application for the trust's registration must be presented to the Registrar of Trusts. The adequate legal system for registering the registered department of the trust is commonly where the trust is arranged.

 

What Does a Trust Deed Contain

The trust deed is the important and most significant document of the trust. It summarises the goal, its obligations, and how it will operate up until it is shut down. The trust deed includes the following clauses.

  • Trust's full term
  • The trust's registered office
  • The trust's operational area
  • Goals for the trust
  • Information on the author and the assets
  • Information about the trustees Board
  • Board membership and the members' qualifications, terms, and tenure
  • Regulating trustee and other trustees' permission and responsibilities
  • Closure, improvement of the trust deed, and the Act's petition

 

Constitution of the Trust

The Board of trustees is created by the Trust. The following individuals make up the Board:

  • Creator, Settlor, and author of the trust
  • Management trustees
  • Other trustees

The Board of Trustees' quorum may not consist of more than 21 people.

 

Why Register a Trust?

According to the Public Trust Act of every state, registering a trust is required if it has a charity purpose or whenever a piece of land is transferred in the trust's name. For tax insurance under Sections 12A and 80G of the Income Tax Act, only registered trusts are allowed to undertake the above mentioned transaction. Registering a trust increases the legitimacy of the same because it involves donations of public funds.

 

Trust Compliances

Following registration, a trust must take the following actions.

  • Obtain a PAN card
  • Follow Accounting and Bookkeeping
  • File for IT annually
  • Licences for businesses and establishments
  • Professional tax registration
  • If applicable, continue with GST registration

 

Applicability of Tax Exemption

People are under the impression that trusts are not liable for taxes however this is not true. Like any other legal entity, trust is accountable for taxation. In order to be completely observed from tax a registered trust should provide the certifications under Section 12A 80G.

 

Benefits of Trust Registration

Establishment of Charitable Undertakings

By registering a charitable trust in India, one can conduct multiple humanitarian endeavours. You can benefit a lot of individuals by stating in the bylaws the justifications for the trust's registration in India.

Aid to Children

Private trust registration in India is a better option to secure the future for your kids. It will encourage you to serve a trustor and suitably organise your possession so that your Trustee , i.e your children—can have a safe and sound economic future, unlike a public charity trust enrollment.

Tax Exemptions

Online trust registration offers tax protections. Generally speaking, a trust is compared to an NGO. Therefore, public trusts in India are eligible for tax benefits if they register as charitable trusts under the Income Tax Act Sections 12A and 12AA.

Helping Individuals

A trust established in accordance with Section 12A aids in trust online registration as well as the consolidation of an organisation whose main goal is to assist as many people as possible.

Simple Integration

Online trust registration process is simple. The procedure is very easy to implement. Simply complete the trust registration form using the proper format. Reach out to Barrister Babu and initiate the process. We will help in promptly procuring the registration certificate.

Family Wealth Protection

In India, registering a private trust is seen as being of the utmost importance for those who want to safeguard their own property.

Setting up Temples

If you consider yourself to be a devoted person, you can register a religious trust. You can create an organisation that can eventually consolidate a temple through the Temple Trust Registration process.

 

Different Types of Trusts

The Charitable and religious trusts function as per the Religious Endowment Act of 1863 and the Charitable and Religious Trust act of 1920. Apart from this the Bombay Public Trust Act of 1950 regulates the registered trusts in India. In India there are basically three different types of trust widely registered.

Public trust

This is the most common type of trust that is usually registered in India. Public trust focuses on spiritual and benevolent activities. They are incorporated for philanthropic activities and religious objectives. This does not regulate with respect to the Indians trust act.

Private Trust

A private trust is a legal structure made for personal gain rather than for a public or charitable cause. A private trust is established to provide proper financial support to the recipients. The advantages of Private Trust are only usable to the called inheritor and it has no charitable purpose. The Indian Trusts Act of 1882 must be attended by these trusts.

Private cum Public Trusts

The Public-Cum-Private Trusts have two objectives, as their word indicates. They are authorised to pay their earnings for both private and public intentions. That indicates that either public or private people, or both, could be inheritors of such a trust.

Documents Required

In order to register a private trust in India the following documents has to be provided

Documents of the Trustee

  • Name of the trustee
  • Employment
  • Address
  • Age
  • Assignment
  • Contact Information
  • Photographs
  • Government recognised address proofs

Proof of Office's Ownership

  • Electricity Bill
  • Home Tax receipt
  • NOC

Witnesses and Settlers

  • Two witnesses are expected to sign during registration
  • The migrant should also be existing at the time of enrollment.

 

 

 

 

 

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