Trust Registration

Trust Registration is the easiest and most convenient way of commencing a non-governmental organization. It involves services that aim for social contribution in the form of education, medical help, or undertaking activities of public utility that promote public welfare.

Parties Involved in the Trust Registration Process:
 
Trustor - The person who creates the trust

Trustee - Individual who holds the trust property given by the trustor.

Beneficiary - Individuals or a group for whom the trust is created.

Types of trusts, which can be registered
 
Societies - Institutions that focus on the promotion of science, arts, and commerce. All the activities are conducted by society and are regulated under the Societies Registration Act, 1860.

Private Limited Trusts - The beneficiaries include specific individuals, families, or close ones. It is regulated under the Trusts Act, 1882.

Public Limited Trusts - The beneficiaries include the public at large and are established for charitable, educational, and religious purposes.

In India, the most common public trusts are religious and charitable trusts

A company formed under Section 8 of the Companies Act (2013) - Private Limited Companies that are registered under section 8 of the companies act. However, these companies cannot carry out businesses to make profits.

Perquisites for Creating Trusts
To form a public charitable trust, there must be a settlor of trust or someone at whose will the Trust is created along with the following mandatory prerequisites:

  • Clear objectives for the trust registration 
  • Details of the purpose of the trust & its property
  • Specifying the beneficiaries of the trust
  • Divesting of ownership by the settlor in favor of the beneficiary of the Trustee.

Documentation Required for Trust Registration in India
Following are key documents that one needs to arrange for the trust registration:

  • Details and Identity Proof of Trustor & Trustee
  • (including passport-sized photographs)
  • Address Proof of Registered Office ( Copy of Certificate of Property/Utility Bills)
  • NOC from the Landlord if the property is rented
  • Trust Deed on Proper Stamp Value and its objectives

Content of the Trust Deed
It is the primary and the most essential document of the trust which states the reason for registering a trust, its functions, working, and closure. Following are the important clauses/contents:

  • Name of the trust
  • The registered office of the trust
  • Area of operation of the trust
  • Objectives of the trust
  • Acceptance of Funds
  • Details of the Settlor of the Trust
  • Corpus/Assets of the Trust
  • Details of the Board of Trustees
  • Details regarding the accounting & auditing
  • Powers and functions of the Managing Trustee and other Trustees
  • Closure and amendment of the trust deed and the applicability of the Act

Steps for Registering the Trust in India

Must fill the application and must be made to the official having jurisdiction in the state for Trust registration.
Select the name for the proposed Trust. It should comply with the name should fit the provisions of the Emblems and Names Act, 1950 & there should be no violation whatsoever when it comes to the Trademark Act.
Drafting a trust deed to make the trust legally enforceable
Once the form is filled, the applicant must sign it in preparation in the presence of the Regional Officer or Superintendent of the Regional Office of the Charity Commissioner or a Notary.

How Muneembhai Simplifies the Process of Registering a Trust?
 
We understand the requirements of your business and provide you with a comprehensive suite of customized solutions that suit your needs at a nominal cost.
With our team of CA, CS, and lawyers, we manage the complete process; right from managing the business registration process to overseeing your budget expenditure to ensure that your preliminary expenses don't exceed the limit for longer financial stability.
 
Being a technology-driven platform, we strive to foster your business growth!

 

Connect with us

Reach Out To Us