Trust Registration in India - An Overview

YOU CAN NOW REGISTER A Trust IN INDIA AT JUST RS. 6,999 (ALL INCLUSIVE)*

A trust can be created by execution of a trust deed; there are two types of trust. A public trust (charitable trust) is created for the benefit of the general public whereas a private trust is created for the benefit of a particular group of individuals known as the beneficiary.

On the appointed date the trust deed is presented before the sub-registrar where all trustees need to be present along with two witnesses. The registration process is then undertaken by the office of the sub-registrar, and the registered deed can be collected after a week time. The next logical step shall be to get the PAN and TAN Number allotted for the trust and open a Bank A/c for the trust.

Must Know Before Trust Registration

Step-1: Private vs Public Trust

Indian Trusts Act, 1882 regulates and administers the private trusts in India, whereas the public trusts direct the functioning of public trusts except in the state of Maharashtra and Gujarat where public trusts are governed by Bombay Public Trusts Act, 1950.

Step-2: Number of Trustees

There is no upper limit for the trustees in a trust, but a minimum of two trustees are always required for registration. The trust deed should have provision concerning the management of the trust along with the procedure of appointing or removing the members.

Step-3: Trust Deed

The trust deed is the most important instrument in a trust, it prescribes the main objectives for which the trust is set up. Apart from the main objects of the trust, it defines its beneficiary and the powers of the trustee. The deed is signed in presence of two witnesses.

Step-4: Tax Benefit

Government privileges and tax benefits are not available to a private trust, whereas public trusts after registration with the income tax can avail certain tax exemptions. We are experienced in obtaining necessary income tax registration for tax exemption or benefit.

Stepwise Process of Trust Registration

Step-1: Selection Of Name

First thing is to select a unique name of your trust, the name should not violate or infringes someone else name or trademark.

Step-3: Drafting Of Deed

The trust deed needs to be drafted wherein the parties to the deed shall be settlor (author of the trust deed), the trustee and the beneficiary.

Step-3: Trust Registration

A trust deed is a document which requires mandatory registration before the registrar of the trusts having jurisdiction.

Step-4: PAN, TAN And Bank A/C

After registration of the trust, the next step is to apply for allotment of PAN Number and TAN and thereafter opening of a bank A/c.