Documents required for Trust Registration Online:

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Ensure to have these documents before engaging on the procedure for registration of Trust:

Trust Deed with the respective stamp value.
Two photographs of the parties involved in the trust.
PAN cards of the individuals associated with the trust.
Address proof of the individuals.
Identity proof of the individuals.
Authentication from the partners (if applicable).
No Objection Certificate for using the premises (if applicable).
Any form of a utility bill as proof of address.
Address proof of the trust registered office.
12A Registration and 80G Certificates from the respective income tax authorities to claim deductions (if applicable).

Process / Procedure for Registration of Trust

The procedure for registration of Trust and obtaining a trust registration certificate download is explained in detail below:

Name of the Trust

The parties forming the trust must choose an appropriate name that complies with the provisions of relevant acts such as Trademarks, Copyrights Act, Intellectual Property Rights Act, and Emblems and Names Act, 1950.

Settlers of the Trust

Determine the individuals who will act as settlers of the trust. While there is no restriction on the number of trustees, a minimum of two trustees is required. The author of the trust cannot be a trustee, and all trustees must be residents of India.

Prepare a Memorandum of Association for the Trust

Prepare a Memorandum of Association (MOA) that outlines the objectives and purpose for which the trust is being formed. Ensure that the goals stated in the MOA are legally permissible.

Draft the Trust Deed

Create a trust deed, which is a legally binding document that establishes the trust. The trust deed must be presented to the registrar when registering the trust. It should contain all the terms and conditions agreed upon by the author, trustees, and beneficiaries.

Submit the Deed to the Registrar

Once the trust deed is drafted, submit it to the registrar and other required documents. The author, trustees, and beneficiaries will be involved in this process.

Obtain Trust Registration Certificate

After reviewing the submitted documents, the trust will be registered if the registrar is satisfied with their validity and compliance. The registrar will issue a trust registration certificate, which the trustees and the trustor should keep. They can also proceed with the trust registration certificate download as per instructions. Once the trust is registered, a bank account can be opened in the trust’s name.

Winding up a trust

Winding up a trust occurs when all the trust’ properties/assets are distributed lawfully to the beneficiaries or a similar entity, directly or through resettlement. During the winding-up process, the parties involved must address any tax obligations resulting from the asset transfer. It is essential to comply with the approval of the charity commissioner, court, or other applicable laws to minimize the risk of legal disputes.

How can IndiaFilings help in securing Trust Registration?

At IndiaFilings, our team of experts is committed to providing you with the necessary support for charitable trust registration and ensuring compliance. It involves intricate legal implications that require careful attention. Our experts will resolve your questions regarding how to register a trust in India. Our professionals ensure that you gain a deeper understanding of the governing provisions of Trust in India, enabling you to undertake Trust-related activities with minimal legal hassles.

Trust Registration FAQ’s

What is trust?

A trust is a legal arrangement where a trustee holds and manages assets to benefit one or more beneficiaries. As specified in the trust deed, the trustee is responsible for administering the trust

What is Trust Registration?

Trust registration is the process of legally establishing a trust entity by fulfilling the necessary formalities and complying with the Trust’s Act of 1882. Trust registration recognizes the trust and ensures compliance with the relevant legal requirements.

Who can create trust in India?

Any person competent to contract, including individuals, companies, and organizations, can create trust in India. The person or entity creating the trust is known as the trustor or settlor.

How many trustees are required to register a trust in India?

A minimum of 2 trustees is required to register a trust in India. The law mandates that a trust must have at least two individuals who will act as trustees to manage and administer the trust’s assets for the benefit of the beneficiaries

Can the author of the trust also be a trustee?

No, the author of the trust cannot act as a trustee. Trustors or authors create trust’s and transfer assets to them for the beneficiaries benefit. While the trustor plays a crucial role in establishing the trust and defining its terms, they are not eligible to be a trustee.

Are there any restrictions on the number of trustees for a trust?

No, there is no limitation on the maximum number of trustees for a trust. While at least two trustees are required to register a trust in India, there is no specified upper limit on the number of trustees.

Are all trustees required to be residents of India?

Yes, all trustees of an Indian trust are required to be residents of India. According to Indian law, at least one trustee must be a resident of India to ensure proper administration and compliance of the trust.

What are the documents required for trust registration in India?

The documents generally required for trust registration in India include the following:

Trust Deed
Identity Proofs of Trustees
Address Proofs
Photographs

Is it necessary to have a physical office address for trust registration?

Yes, it is essential to have a physical office address for trust registration in India. The physical office address serves as the official address of the trust and is used for communication, correspondence, and legal purposes.

What is the process of trust registration in India?

Trust registration in India involves drafting a trust deed, executing it on non-judicial stamp paper, and submitting the necessary documents to the relevant authority for registration.

Can a trust operate in multiple states in India?

Yes, a trust can operate in multiple states in India. Trust’s are not restricted to operating within a specific state and can extend their activities to other states. However, it is essential to ensure compliance with the laws and regulations of each state where the trust operates

How long does it take to register a trust in India?

The time taken to register a trust in India can vary depending on various factors. IndiaFilings can help streamline the registration process and ensure a smoother and more timely completion.

Is it mandatory to obtain a PAN card for a registered trust?

Yes, a registered trust in India must obtain a PAN (Permanent Account Number)card to conduct various financial activities, including opening a bank account, filing tax returns, and receiving donations

Can a trust engage in commercial activities?

No, a trust is primarily established for non-profit or charitable purposes and is not intended for commercial activities. A trust’s primary objective is to serve its beneficiaries welfare or fulfill a specific charitable cause.

What are the tax benefits available to registered trust’s in India?

Registered trust’s in India enjoy tax benefits such as income tax exemption for charitable activities and deduction for donations under Section 80G of the Income Tax Act.

Can a trust be dissolved or revoked?

Yes, a trust can be dissolved or revoked under certain circumstances per the provisions outlined in the trust deed or the applicable laws.

Can the beneficiaries of trust be changed?

In general, the beneficiaries of a trust cannot be changed once the trust is established. The identity of the beneficiaries is usually specified in the trust deed, and any alteration to the beneficiaries would require the consent of all parties involved

Can a trust be converted into a private limited company?

No, a trust cannot be directly converted into a private limited company in India. A trust and a company are two distinct legal entities with different characteristics and purposes.

What are the reporting requirements for a registered trust in India?

Registered trust’s in India have certain reporting requirements to fulfill. They include filing an annual return with the Registrar of Trust’s and providing details on the trust’s activities and financial statements.

Can a foreign national create trust in India?

A foreign national can create trust in India, subject to certain conditions. As per Indian law, there are no restrictions on the nationality of the settlor (the person creating the trust) for establishing a trust in India.

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