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 Vakilsearch 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, Vakilsearch can complete trust registration online.
Steps to Register a Trust
The trust deed registration certificate process can be done online through Vakilsearch 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 registration and an application for the trust registration online 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. Trust registration increases the legitimacy of the same because it involves donations of public funds.
Trust Registration Online Process
- The process of registering a trust in India is relatively simple and straightforward. The first step is to identify the type of trust you wish to create. There are two main types of trusts in India: private trusts and public trusts.
- Private trusts are typically created by individuals for the benefit of their family or themselves, while public trusts are created for the benefit of the general public.
- Once you have determined the type of trust you wish to create, the next step is to choose a name for your trust.
- The name should be reflective of the purpose of the trust and should be approved by the Registrar of Companies.
- The next step is to appoint trustees.
- Trustees are responsible for managing the affairs of the trust and ensuring that it operates in accordance with its objectives.
- You will need to appoint at least three trustees, who must be natural persons (i.e. not companies or other legal entities).
- Once you have appointed trustees, you will need to draft the trust deed. The trust deed is a legal document that sets out the rules and regulations governing the operation of the trust. It must be signed by all trustees and registered with the Registrar of Companies.
- The final step in setting up a trust is to fund it. This can be done by making a financial contribution to the trust, or by transferring assets such as property or shares into its name.
- Once you have completed all of these steps, your trust will be registered and operational.
Documents Required for Trust Registration Online
In order to register a private trust in India the following documents has to be provided
Documents of the Trustee
- Name of the trustee
- Contact Information
- Government recognised address proofs
Proof of Office’s Ownership
- Electricity Bill
- Home Tax receipt
Witnesses and Settlers
- Two witnesses are expected to sign during registration
- The migrant should also be existing at the time of enrollment.
Why Banshi Professional?
Our team of knowledgeable business experts can complete the trust registration online process pretty soon. All you need to do is contact our experts and turn in all necessary paperwork. Please get in touch with us if you have any questions or concerns about trust registration online. All of your questions will be answered by our team of professionals, who will also smoothly complete the process.