How to get Trust Registration?

Under the Trust Act 1882, a Trust is like a contract or an agreement where the trustor transfer the property to a trustee for the profits of a third person which is called the beneficiary. It is a fiduciary relationship between the trustee, the trustor, and the beneficiary. Trust registration is essential to develop various sectors in society and to promote the activities leading to a better society. Scroll down to check more information regarding Trust Registration in India.

The following are the different types of trusts:

• Societies: It is mainly formed for the promotion of arts, commerce, and science. It is regulated by the Societies Registration Act, 1860 and the activities of the society are for non-profit purposes.
• Private Limited Trusts: Private limited Trusts are governed under the Trust Act, 1882. These trusts are formed for conducting various activities for the family, individuals, or close one relative.
• Public Limited Trusts: This trust is established for education, charity, and religious purposes. In India, Charitable and religious trusts are the most common public trusts.
• Companies are formed under Section 8 of the Companies Act, 2013: All the Private Limited Companies comes under Section 8 of the Companies Act. The main objectives of this are for promoting crafts, science, education, arts, environmental activities, etc.

Below are the three type of parties in a Trust:

• Trustor: The person who formed or create trust is known as trustor. In short, the trustor is the owner of the trust.
• Trustee: It is an individual that holds the property of the trust given by the trustor.
• Beneficiary: It is an individual for whom the trust is created. It is a third party who may be known to the trustee and trustor.

Below is the eligibility criteria for applying to Trust Registration:

• At least two or more persons need for forming the trusts.
• The trust must be formed under the Indian Trusts Act, 1882.
• The parties must not be disqualified under any law in force in India.
• The aim of any trust must not go against any law in force in India.
• Practices conducted by the trustee must be fair.
• Make sure that any activities must not injure any person.
• Any activities conducted by the Trust must not go according to the memorandum.
• Trust Deed should be drafted appropriately and intend the real interests of the parties forming the trust.
• The Trust formation must not go against any public interest or any other law in force.
• The purposes of creating the trust must be valid; if any object is invalid, then the trust cannot be formed.

Following are all the essential documents required for Trust Registration in India:

• Two latest photographs of the parties in the Trust.
• PAN Card of all the individuals.
• Address proof of all the individuals such as latest electricity bill, water bill, Gas bill, etc.
• Identity proof of all the individuals such as Aadhar card, Voter Id, Passport, Driving License, etc.
• Authentication from the partners.
• NOC for using premises.
• Resident proof of the registered office of the Trust.
• 12A and 80G certificate from the respective income tax authorities to claim any form of deductions.

Follow the below steps for applying for Trust Registration in India:

Step 1: Choose an appropriate name:

First, the parties must choose the name of the trust. The name of the trust must go under the Trademarks, Copyrights Act, and Intellectual Property Right Act. Also, the name of the trust must not go against the Emblems and Name Act, 1950.

Step 2: Settlers of the Trust:

Then, the parties must choose the settlers of the trust and minimum of two trustees are required for creating trust. The author cannot become the trustee of the trust, and the trustee has to be an Indian citizen.

Step 3: Form Memorandum of Association (MOA) for the trust:

MOA is a document which represents the charter of the Trust, and it defines the relationship of the Tutor with the Trustees and tells the objects of the trust what the trust is formed.

Step 4: Draft the Trust Deed:

Trust deed is an essential document for creating the Trust. It must be produced to the companies' registrar when the trust is formed between the parties. Below are the lists of some important things to remember at the time of drafting the trust deed:

• Trust name.
• What kind of activities carried out by the trust?
• Objectives of the trust, whether they come in place with the appropriate objects of the business.
• Information related to the trustors or authors and trustees.
• Net assets owned by the trust and is there any other assets owned by the trust.
• Qualification and other information regarding the trust.
• Responsibilities of the managers, directors, and other members of the trust.
• Functions and power of the trustees and other members of the trust.
• Other information related to the trust and the amendment of the trust.
• Where the trust has its registered office.

Step 5: Submit the deed to the registrar:

After getting a certified copy of a deed, please submit it to the registrar. After that, the settler must sign on every page of the photocopy of the Trust Deed. The settlers and two other witnesses must be physically present along with their Id proofs at the time of registration.

The following fees have to be paid to the sub-registrar:

• Pay Rs. 100/- for the registration fee for the trust.
• Pay Rs. 1000/- to the sub-registrar for keeping a copy of the registration with the
• companies registrar.

Step 6: Obtain certificate:

After the verification of all the documents, if the registrar is satisfied with all the documents, then the trust will be registered. They will provide the trust registration certificate, and this certificate must be kept with the trustee and trustor. After getting a certificate, the respective bank account can be opened.

Following are the compliances after its registration:

• Annual IT filings.
• Shop and Establishment License.
• Professional Tax Registration.
• GST Registration.
• Pan Card.
• Accounts and bookkeeping.

Trust Registration is easy as compared to other forms of registration because it requires minimum documents, and the process is not strict. Trust registration is essential to develop various sectors in society and to promote the activities leading to a better society. If you want to serve the social cause, then you can register a Trust.