Trust Registration Consultancy in Kolkata
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Individuals form trusts for setting a particular part of the assets or the property for the benefit of another person. A Trust is formed as a benefit for another individual. It is more of a fiduciary relationship between the trustor, the trustee, and the beneficiary. Hence when an applicant goes for the process of trust registration, they would be different parties as a form of the trust deed.
A specific asset or a property transferred from the trustor to the trustee for the future benefit of the beneficiary is known as trust. The beneficiary is another party (third-party) who may be related to the trustor and trustee.
Hence, the relationship that brings the parties to the trust is crucial to define trust. Under the Indian Trusts Act, 1882, the meaning of trusts has been provided as a relationship that persists between the trustor and trustee to hold some specific benefit for the beneficiary
Parties involved in Trust Registration Process
The following are the parties involved in trust registration:
- TrustorThe trustor is the person who creates the trust. The trustor is usually the owner of the trust.
- TrusteeThe Trustee is an individual that holds the trust property which is given by the trustor.
- BeneficiaryThe beneficiary is an individual for whom the trust is created. The beneficiary is a third party who may be known to the trustor and trustee.
Types of Trusts
Trusts are divided into different categories based on the activities carried out by a particular trust. The following are the trusts:
A society is formed mainly for the promotion of science, arts, commerce. All the activities conducted by society are non-commercial. Therefore activities conducted by society are for non-profit purposes. Societies are regulated under The Societies Registration Act, 1860. Societies, through having similar activities from trusts, have to be differentiated from trusts
Private Limited Trusts
Private Limited Trusts are formed for conducting activities for the individuals, family, or close ones. This can include close individuals who form the beneficiaries of private trust. The Trusts Act, 1882, governs private limited trusts.
Public Limited Trusts
Public limited trusts are typically formed where the beneficiaries include the public at large. Usually, public trust will be established for charitable, educational, and religious purposes. In India, the most common public trusts are charitable and religious trusts.
A Company formed under Section 8 of the Companies Act (2013)
Private limited companies can be under section 8 of the companies act. However, these companies cannot carry out businesses to make profits. Companies formed under this have the objectives of promoting education, crafts, science, arts, sustainability development, and environmental activities.
Benefits of Trust Registration
- Charitable ActivitiesBy registering the trust the applicant can carry out different types of charitable activities for the society.
- Donors can Claim Tax ExemptionsBy donating to the trust, the donors can avail facilities such as tax exemptions under the respective Income Tax Act, 1961
- Compliance with LawBy registering the trust, compliance would be maintained under the provisions of the Indian Trusts Act, 1882.
Why Trust Registration Process is Required?
Trusts are formed for the sole purpose of promoting non-commercial activities. These activities have to be in the field, promoting development in the field of arts, science, education, and the environment. Therefore registering a trust is crucial. The following benefits are obtained from registering a trust in India.
- To ensure that the activity conducted on behalf of the trust is regulated properly.
- To develop and promote activities leading to a better society.
- Trust registration is required to claim income tax benefits under 12A and 80 G.
- In the case of public trust, beneficiaries are the general public. Every trust must act in the best interests of the public to promote the development of trust.
- This license is required so that the businesses of trust are conducted as per the law.
- To develop various sectors in society.
Documents required for Trust Registration
The following documents are required for trust registration:
- Trust Deed with the respective stamp value.
- Two Photographs of the parties in the trust.
- PAN Card of the individuals having a trust.
- Address Proof of the Individuals.
- Identity Proof of the Individuals.
- Authentication from the Partners.
- No Objection Certificate for using the Premises
- If you have any queries releted registration matters or legal matters then you can contact with the best legal team of B.Pramanik & Associates, kolkata.
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