Trust implies the transfer of a property (cash, shares or valuable asset) from the owner to another person. There are two types of trusts – Private and Public. A private trust is formed for the benefit of a group of people. Public trust is formed for the benefit of the general public.
Trust Registration requires important documents like trust deed and rental agreement. Our service experts help you with the complete procedure for the formation of trust while taking care of all the legal intricacies
Trust Registration in India
Public Trust is the most convenient way of starting a non-governmental organization or NGO. A trust functions on the objective of eradicating poverty, providing education to the underprivileged and offering medical relief apart from the generalized aim of promoting arts, science and literature. It is to be noted that trusts are irrevocable which means they cannot be amended or terminated without the permission of the court. B. Pramanik & Associates helps in providing you with the trust registration certificate with a few documents like a deed of trust, rental agreement, etc.
In India, there are no specific laws to govern the public trust, however, some states like Maharashtra and Tamil Nadu have their own public trust Act.
B. Pramanik & Associates is an Indian Trust Registration Consultancy and having qualified expert Trust Registration Lawyer in India and providing Trust Registration services in Kolkata, West Bengal, Delhi, Mumbai, Bangalore, Hyderabad, Patna and etc. for NGO Registration, Trust Registration, Association Registration, Union Registration, Samity Registration, SHG Registration, Micro-Finance Registration related all types of Legal Services & Registration services.
Contact with us for Trust Registration Services
B. Pramanik & Associates
(An Authorized Trust Registration Consultancy)
158, Dumdum Road, Kolkata – 700074, West Bengal, India
(Beside Dumdum Ghoshpara State Bank e-corner; Landmark – Dumdum Hanuman Mandir)
Phone: +91 9339055647 / 6291316573 / 6289064067
Online Trust Registration
B. Pramanik & Associates helps you in providing with the trust registration online through very simple steps. As an initial step in registering the trust, the founder of the trust or the “Author of the Trust” or the “Settlor of the Trust” has to figure out in a document the objectives of the trust and the manner in which the trustees have to work towards achieving the goals of the Trust. This document that contains all such details is called a Trust Deed, which is also called a deed of trust.
Once this is made, thereafter, an application for registration of the trust shall be moved before the Registrar of Trust along with the Trust Deed or a deed of trust. The appropriate jurisdiction for registration of the trust is usually where the registered office of the trust is located.
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.
Content of the Trust Deed
The trust deed is the primary and the most essential document of the trust which states the reason for forming a trust, its functions, to its working, and until its closure. Following are the important clauses in the Trust Deed:
a) Name of the trust
b) The registered office of the trust
c) Area of operation of the trust
d) Objectives of the trust
e) Details of the Author of the Trust
f) Corpus/Assets of the Trust
g) Details of the Board of Trustees
h) Quorum of the Board with their qualification, terms and tenure
i) Powers and functions of the Managing Trustee and other Trustees
j) Closure and amendment of the trust deed and the applicability of the Act
To get your trust registration certificate, you should require the following documents during the registration of the Trust:
a) A completely drafted trust deed
b) Proof of registered office – (Rental Agreement or ownership document)
c) ID proof of the Founder of the Trust
d) Two witnesses
Constitution of the Trust
The Trust constitutes the Board of Trustees. The Board constitutes the following:
a) Author/Founder/Settlor of the trust
b) Managing trustee(s)
C) Other trustees
The quorum of the Board of Trustees shall not exceed a maximum of 21 members.
Why register a trust?
As per the Public Trust Act of all states, registration of Trust is mandatory if it involves charitable purpose or when there is a transfer of immovable property in the name of the trust.
Only registered trust is eligible for tax exemptions provided under Section 12 A and 80G of the Income Tax Act.
Registering a trust adds more credibility to the same as it involves public money in the form of donations.
What is the process for Trust Registration?
The procedure of the Trust Registration in India is as follows:
Choose an Appropriate Name
This is the first step in the procedure of Trust Registration in India. Additionally, the name so suggested by the applicant should not come under the restricted list of the names as per the provisions of the Emblems and Names Act, 1950
Decide the Authors and Trustees
There is no specifically defined provision with regards to the number of settlers or authors. However, in most of the cases, there is generally only one author of a Trust.
Furthermore, there is no limit on the maximum number of the trustees of a Trust. But a minimum number of two trustees are necessary to form a Trust in India. Also, generally, the author cannot be the trustee of a Trust. And the author is required to be a resident of India. Also, know the complete checklist of trust registration in India.
Formulate Memorandum of Association and Trust Deed
A Trust Deed is legal evidence of the existence of the Trust. It contains the rules and regulations of the Trust. This document also contains the laws regarding the removal, changes, or addition of the Trustees to the Trust.
On the other hand, Memorandum of Association or MOA represents the charter of the Trust. It defines the relationship between the Trust or and the Trustees and also specifies the primary objectives for which such a Trust is formed by the applicants. Such a document of a Trust should contain the addresses, names, and occupations of all the members along with their signatures.
Preparation of Trust Deed on a Stamp Paper
As a Trust, the applicant is required to prepare the Trust Deed on a stamp paper. The value of the stamp paper is of a certain percentage of the total value of the property of the Trust. Furthermore, this percentage value of the Trust varies from state to state.
In addition to this, the applicant is required to pay a fee of Rs. 1100. Out of this Rs. 1100 amount of Rs. 100 is the Trust Registration fee and other Rs. 1000 are the charges of keeping a certified copy of the Trust Deed with the Sub-Registrar.
Once the applicant submits all the required papers, he/she can collect a certified copy of the Trust Deed. Such a copy can be collected within a time period of one week from the office of the Registrar.
Submission of Trust Deed to the Registrar
After the receipt of the copy of the Trust Deed, the applicant is required to submit the same along with properly attested photocopies of all the necessary documents with the office of the local registrar.
Furthermore, the settler should put his/her signatures on every page of the photocopy of the Trust Deed. Also, it is mandatory for all the settlers as well as the two other witnesses to be physically present along with the identity proofs (original as well as the self-attested photocopy of the same) at the time of Trust Registration in India. However, the physical presence of Trustees of the Trust is debatable.
Obtain the Certificate of Registration
After the submission of the Trust Deed with the Registrar, the registrar will retain the photocopy of the Deed and return the original registered copy of the Trust Deed.
After the completion of all the formalities, a Certificate of Registration will be issued to the applicant. Such a Certificate of Registration will be issued within a minimum of seven working days.
A trust shall after its registration shall do the following
a) Obtain PAN card
b) Book Keeping and Accounts
c) Annual IT filings
d) Shops and Establishment License – in case of employment
e) Professional Tax Registration – if applicable
f) GST registration – if applicable
Applicability of tax exemption
There is a general notion that trust need not have to pay tax as they work towards the welfare of the public at large. But this is not true. A trust, like any other legal entity, is liable to pay tax. In order to be exempted from tax, trust is required to obtain certification for the said exemptions such as Section 12 A, 80G etc. from the Income Tax authorities.
Why B. Pramanik & Associates?
B. Pramanik & Associates will helps you to register trust in India. You can consult with Advocate B. Pramanik and proceed for Trust Registration. B. Pramanik & Associates will be complete your Trust Registration.
20 Working Days
Just tell us a little bit about your business and you’ll have the registered trust deed in 20 working days (subject to government approval). It’s that simple. In addition to yours, we’ll be handling around 400 requests this month.
9.1 Customer Score
We make your interaction with the government as smooth as is possible by doing all the paperwork for you. We will also give you absolute clarity on the trust registration process to set realistic expectations.
300 Strong Team
Our team of experienced business advisors are a phone call away, should you have any queries about the trust registration process. But we’ll try to ensure that your doubts are cleared before they even arise.
We, B. Pramanik & Associates leading Trust Registration consultancy in West Bengal and provide Trust Registration Services in all over West Bengal.
Trust Registration Lawyer in India, Advocate B. Pramanik Practicing as an Advocate at High Court at Calcutta
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