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About Indian Trust registration
In India, registering for Trust for non-profit is quite popular. It is possible to form Trust with 2+ people for any social cause.
About Trust Registration
The Indian Trust Act governs and registers Trusts in the country. It is considered to be a financial vehicle to transfer property to trust from owner for lawful purpose. Generally, the term trust is heard for religion purpose. But no such restriction is present. Even sports academies get registered as trusts.
Few societies get registered as public trust. The wealthy often create private trusts to enjoy the trust’s tax efficient nature (not applying of minimum alternate tax or dividend distribution tax). Transfer is much easier than creation of will. But writing a will definitely involves more effort than trust
registration in India.
Necessary documents for Trust registration
- Trustee details like Occupation, Name, Address, Father’s Name, Age, Contact Number, Designation, Two photograph and email address is to be provided.
- Required Settler and Trustee Address Proof: Passport, Driving License, Voter ID.
- House Tax Receipt, Electricity Bill, Ownership Property proof or Water bill receipt required.
- For rented office, the rent deed needs to be duly notarized with proper rent receipt and the Landlord is to provide NOC form on ten rupees stamp paper. It should have the landlord’s name, residence address and father’s name.
- During registration, Settlers /all will be required to be present physically with original ID.
- Two witnesses needs to be present physically during registration time with original ID proof.
What are the steps involved in new trust registration
Trust Deed preparation: The very first step will to draft the new Trust need. Although not non-mandatory, it is desired and enforced by law. Following details are to be mentioned within the Deed:
- Settler (The person establishing the Trust) name & address
- Other trustee/s name and address
- Trust name (minimum three preferences is to be provided)
- Trustee numbers (Maximum and Minimum)
- Registered trust office address
- Trust rules & regulations
Who are parties to this Trust: The trust is formed by three parties.
Trust author/applicant: Author is considered to be the person declaring Trust confidence. The author’s name and address is mentioned within the Deed.
Member/Trustee details: Trustee is not to be any minor but of sound mind frame. Members/Trustees full name, occupation, age, designations and address need to be clearly mentioned.
Trust beneficiary: It is the person who is to benefit with the trust formation. Generally, the beneficiary is the public at large or the Author himself.
Trust objectives: It is only for charitable purpose that trust could be formed. The trust’s detailed objective is to be
Subject matter: The trust’s subject matter is regarded to be the property due to which there has been creation of the trust. Subject matter needs to be clearly defined, while trust property is to be capable enough of disposition, so as to form a valid trust.
One can take help of the industry experts to register a trust.
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