Online Trust Registration - Overview

To Involve In Charitable Activities

Charitable trusts are formed with the common objective of getting involved in charitable activities while collecting certain benefits for him, his heir and successors.

Registered Trust Avails Tax Exemptions

The main reason for setting up registered Trust is to avail tax exemptions. Trusts are non-profit organizations and to avail the perquisites, the charitable trust should have a legal entity.

Provides Benefits To Poor People

The trust is set to help and the underprivileged sections of the society.

Preservation Of Family Wealth

Trust is used to own specific assets like land and interest in a family-based company, which would not be suitable or practical to settle or split between individuals. The trust allows the individuals to benefit from the asset however they don’t own them. The trust assists to preserve the capital value of these assets for potential generations.

Immigration / Emigration Of The Family

When a person or the family shifts then to evade the tax in the destination country it is ideal to set up a trust.

Avoid Probate Court

As legal title of assets surpasses from the settlor to the Trustee when they are settled, there is consequently no change in ownership when the settlor dies thus to visit probate of a will in term of trust assets does not arise.

Following are the documents required for Trust Registration

• Objectives of the Trust Deed.
• Trust Deed on Proper Stamp Value.
• Particulars of the Trustee and settlor (Self-attested copy Id and Address Proof along with the information related to occupation).
• Photographs of Trustee and settlor.
• PAN Card of Trustee and settlor.
• Documents related to the Trust Registered Address. In the case of rented property (NOC from the Landlord is required).

The procedure for registering a Trust in India is summarized below:

1. Selection of An Appropriate Name

The very first step in registering the Trust is to select an appropriate name for the trust. An applicant must take into consideration that the name so suggested should not come under the restricted list of names according to the provisions of the Emblems and Names Act, 1950.

2. Draft the Trust Deed

The Trust deed should be drafted before incorporation of the Trust. A trust deed is a document that contains all the important information related to the registration and the deed must be furnished before the Registrar at the time of registration.

Select Settlers And Trustees Of The Trust

The next step would be to select the settlor and Trustees of the Trust. Although, there is no specific provision with regards to the number of settlers/authors. According to the provisions, there must be a minimum of two trustees to form a Trust.

Preparation of Memorandum Of Association

For Trust registration it is important to prepare and draft the Memorandum of Association as it represents the charter of the Trust.

Payment of Fees

The next step is to pay the fee required for Trust registration.

Obtain a Copy Of Trust Deed

Once an applicant submits the papers; he/she can obtain a certified copy of the Trust Deed within 1 week from the registrar’s office.

Submission Of The Trust Deed with Registrar

After obtaining a certified copy of the Trust Deed, you would be required to submit the same with the local registrar. The Trust deed must be submitted along with properly attested photocopies.

Issuance of The Registration Certificate

After submitting the Trust Deed with the registrar, the registrar keeps the photocopy and returns the original registered copy of the Trust Deed to the applicant and also issues the registration certificate within seven working days.

The Trust incorporation process takes about 20 to 25 working days, subject to verification by the department.

The cost of trust registration, including government and professional fees, would range from Rs. 13,999 Rs. 17,999 approx.

Choosing the suitable form of NGO is very important as it is a onetime task but would benefit your organization in the long-run. We at Tax Seva Kendra, offer first free expert consultation to guide you choose the right type of non-profit organization as per your requirements. Get in touch with our professional team to decide which form of non-governmental organization is most suitable for your needs and for more information on NGO or Trust Registration.

We have a team of experienced professionals like Company Secretaries, Chartered Accountants, lawyers and other industry experts who are dedicated towards a common objective i.e. customer satisfaction. We will also ensure smooth and hassle-free Trust registration services in India.