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TRUST REGISTRATION
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Keynotes on 20,000/- Trust Registration
Registering a trust requires essential documents such as a trust deed and a rental agreement. At Law Sarathi, our team of experienced professionals is well-versed in the online trust registration process, ensuring a smooth and efficient experience.
We provide expert assistance throughout the entire trust formation process, addressing any legal challenges along the way. You can count on us for cost-effective trust registration services, tailored to meet the needs of your start-up.
To register a trust, you’ll need essential documents such as the trust deed and rental agreement. At Law Sarathi, our experienced professionals are well-versed in the online trust registration process, ensuring a smooth and efficient registration experience.
Our experts provide comprehensive assistance throughout the trust formation process, helping you navigate any legal challenges. Feel free to reach out to us for information about our affordable trust registration fees as you set up your startup.
Public trusts are a straightforward way to establish a non-governmental organization (NGO) with a social objective, such as alleviating poverty. If you wish to register your trust online without facing legal complications, contact us as soon as possible. We will ensure your trust registration documents are processed correctly and guide you in establishing your startup.
Get in touch with us to learn about the ideal procedure for trust registration services. At Law Sarathi, we are dedicated to delivering business services with a quick turnaround time. We collaborate exclusively with qualified and experienced professionals to guarantee top-quality service at competitive prices.
So, what are you waiting for? It’s time to launch your startup!
According to the Indian Trust Act, a trust is defined as follows: “A trust is established when the author of the trust demonstrates, with genuine intent, the following:
Trusts are classified into two main categories:
Public Trust: A public trust is one where the beneficiaries are the general public, either in large or small part. Public trusts are further categorized into:
Public trusts are considered non-profit charitable organizations or non-governmental organizations (NGOs).
Private Trust: A private trust is one whose beneficiaries are specific families or individuals. It can be categorized as follows:
A trust can also be a combination of both types, known as Public-cum-Private Trusts. Part of their income is used for public welfare, while another part is allocated to individuals. The portion designated for public welfare is eligible for tax exemption under Section 11. However, such a trust must be created before April 1, 1962, to qualify for this exemption under the Income Tax Act, 1961. Trusts established on or after this date cannot receive tax exemptions under Section 11.
Here’s a brief overview of some key terms related to trusts:
Trustee: The individual who accepts the responsibility granted by the settlor or author of the trust is known as the trustee. Unlike societies, trustees are often closely related. According to the Indian Trust Act, the following individuals can serve as trustees:
A trustee must fulfill the purpose of the trust while adhering to the rules set by the settlor at the time of its establishment, unless modifications are approved by all other trustees. A trustee has the authority to execute deeds, reimburse expenses, issue decrees, and settle accounts. However, once a trustee has accepted their role, they cannot resign nor use trust property for personal gain.
Author of Trust: The individual who creates the trust is known as the settlor or author. Under the Indian Trust Act, any person capable of contracting, with the approval of a principal civil court or original jurisdiction, may establish a trust on behalf of a minor. This is subject to legal conditions regarding the trust property.
Beneficiaries: Beneficiaries are individuals who receive benefits from the trust as specified by the settlor and acknowledged by the trustee. According to the Indian Trust Act, any individual capable of holding property can be a beneficiary. A proposed beneficiary may renounce their interest in the trust through a disclaimer addressed to the trustee or by formally notifying them of a conflicting claim. Beneficiaries are entitled to profits, rents, and specific actions. They can also request copies of trust documents and any records of transactions.
Trust Property: Trust property or trust money refers to the subject matter of the trust. The instrument of trust is the document through which the declaration of the trust occurs.
Trust Deed: A memorandum is required prior to registering a trust, known as the trust deed. This document outlines essential elements with clear assurances, including:
The trust deed serves as a crucial instrument, detailing the objectives, purposes, and management methods of the trust. It provides legal recognition, especially when property, such as land or buildings, is involved, thereby serving as prima facie evidence.
A public charitable trust must be registered with the charity commissioner’s office in the jurisdiction where it operates.
To complete the trust registration process, several steps must be followed. Here’s an overview:
Selecting an appropriate name for the trust is the first essential step. The proposed name should not imply any support from state or central government bodies and must comply with the Emblems and Names Act, 1950. It should not include any names from the restricted list. While it is possible to use names already registered with the registrar’s office, the proposed name can still be rejected. If this occurs, a complaint may be filed with higher authorities for further review.
Determine the author (settler) and trustees of the intended trust. There are no specific rules regarding the number of settlers, but traditionally, there is usually one. At least two trustees are required, with no upper limit. Generally, authors or settlers do not serve as trustees; this is at the discretion of the other trustees. There are no educational requirements to be a trustee, meaning even an illiterate person can serve. For females, the minimum age is 18, while for males it is 19, with an average of 19.5 sometimes considered. Trustees must be residents of India, while NRIs, OCI cardholders, and foreigners residing abroad for more than six months are ineligible.
A Memorandum of Association and Rules & Regulations must be created, collectively known as the trust deed. This legal document includes various clauses, such as:
Additionally, a table listing the names, addresses, occupations, and signatures of the members must be included. The Rules and Regulations section should contain:
The intention to separate trust property upon the trustees should be clearly stated. It is essential to follow the Indian Registration Act, 1908, Section 21, which mandates that a deed of trust concerning immovable property be registered. The trust deed should include sufficient property descriptions to identify it.
Bylaws of the Trust: Every applicable rule should be listed point by point, incorporating relevant sections of the Income Tax Act, Indian Trust Act, and other laws governing the trust’s operations. Procedures for opening and operating a bank account should be clearly stated, as well as how changes, additions, or removals of trustees will be managed. Engaging experienced professionals to draft the trust deed is advisable, as an incomplete deed can create future legal challenges.
File all necessary documents upon submission, including the trust deed, which is crucial for registration. Trusts are generally permanent unless otherwise stated in the deed, meaning they cannot be dissolved once established.
The essential elements of the trust deed must include:
The trust deed must be executed on a stamp paper valued at a percentage of the trust property, with this percentage varying by state.
Important Notes: All members must provide verbal or written consent. Laws regarding the physical presence of trustees differ by state. The settler must be physically present throughout India, and in some states, trustees are required to submit original photo IDs along with self-attested copies.
The trust deed, along with attested copies, must be submitted to the registrar. The settler must sign each page of the photocopy of the trust deed. At registration, two witnesses and the settler must be present with their ID proofs (both originals and self-attested copies). Some states require the physical presence of trustees, while others may accept written consent with ID proofs.
The registrar retains a photocopy and returns the original registered trust deed.
Once all documents are submitted and formalities completed, expect at least seven working days to receive the registration certificate. Although not officially stated, the registrar may send an official letter to verify the registered office address.
Enclosures Required:
Two Copies of the Memorandum of Association:
This should include a list of the founder members and the proposed governing body, with signatures from all members.
Two Sets of Rules and Regulations:
These documents should outline the functioning of the society.
Affidavits:
Affidavits on ₹10 stamp paper from either the Secretary or President of the society confirming the name or title of the society.
Proof of Residence:
Photocopies of residence proof for all members.
Ownership Evidence and No Objection Certificate:
Documentation proving ownership of the society’s registered office, along with a no objection certificate on ₹10 stamp paper.
Identification Evidence:
Photocopies of identification documents for all members of the society.
A trust is a legal entity created to manage assets or work towards specific social, religious, or charitable objectives. Registering a trust makes it legally recognized, ensures smooth operations, and helps build public credibility.
To register a trust, the following documents are typically needed:
The timeline for registration depends on the state and the complexity of the process. Typically, trust registration can take anywhere between 7 to 20 working days.
Any individual capable of entering into a legal agreement can become a trustee. This includes Indian citizens and, in some cases, foreign nationals.
Yes, with Law Sarathi, you can complete the trust registration process online. Our experts handle the procedure, documentation, and compliance, making it seamless for you.
Trust registration costs vary based on factors like location, number of trustees, and services included. Contact Law Sarathi to get a detailed breakdown of affordable trust registration fees.
A trust primarily focuses on charitable or social objectives. However, it may engage in business activities to generate funds for its objectives, provided it complies with applicable laws and tax regulations.