Online Trust Registration - Overview
Forming a Trust is the easiest way of starting a non-governmental organization or NGO. A trust operates with the objective of alleviating poverty, providing education to the underprivileged and offer medical relief apart from the generalized purpose of promoting arts, science and literature. It is to be kept in mind that trusts are irrevocable which means they cannot be amended or terminated without the permission of the Court.
Tax Seva Kendra helps in providing you with the Trust Registration certificate with minimal documentation and affordable fees.
In India, there are no specific laws that regulate the public trust. However, some states like Maharashtra and Tamil Nadu have their own public trust Act.
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Online Trust Registration Registration Package
- What we provide
- Documents required
- Certificate of Incorporation (CIN)
- Permanent Account Number (PAN)
- Memorandum of Association (eMOA)
- Articles of Association (eAOA)
- Director’s Identification Number (DIN No)
- Digital Signature (DSC)
- Goods and Service Tax (GST)
- Registration license
- Provident Fund (PF)
- Employees State Insurance (ESIC)
- Required two names of the Trust
- Address Proof of the Registered Office (Rent Agreement, Receipt, Electrical Bill, Owner Property tax)
- Director's PAN, Aadhar, Voter Card
- Director's Electrical Bill
- Director's Driving Licence or Passport (If any)
- Director's Last 6 months Bank statement
- Director's Email and Mobile
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.
Can a trust be unregistered?
public Charitable Trust not registered would be applicable for tax as an AOP (association of persons). The tax is chargeable on the total income of an AOP/BOI at the same rate as is applicable in the case of an individual.
What is the procedure for the closure of Trust?
As mentioned above, a Trust is usually irrevocable. However, for reasons like disqualification of the trustee, absence of trustee, mismanagement of the trust, a Trust can be merged with other Trust having a similar objective given there is permission from the court.
In what other ways a Trust helps in tax mitigation?
The Trust helps in cutting down tax on capital and income. The Trust provides effective protection for the settlor, the beneficiaries and the Trust assets from punitive taxation.
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