A public charitable trust may be created in India by any person competent to contract, for purposes including poverty relief, education, medical relief, advancement of any object of general public utility, etc. A public trust may registered or unregistered.
How many types of trust are there?
There are two types of trust – one is public trust and one is private trust. While the number of beneficiaries is uncertain in a public trust, there is a fixed number of beneficiaries in a private trust.
What is a Trust Deed?
The trust deed is written on non-judicial stamp paper. Its value is based on the value of the trust property. In this, topics related to trustees, such as their number, their responsibilities, rights, method of management, trust rules & regulation etc. are written. It is necessary to have a minimum of two members in any trust.
What is the registration process of Trust?
The secured property or money held by the trust is considered as the capital amount of the trust. Its details are written in the instrument of trust. To give legal form to the trust, it is necessary to register the trust.
An application is made to the concerned area officer for registration.
It is presented to the charity commissioner or the superintendent of the regional office of the notary.
It is signed by being present there.
A copy of the trust deed is to be submitted along with this form.
Along with these documents, an affidavit and consent letter also have to be given.
Required documents for trust registration
The following documents are required during the registration of the trust:
A fully prepared trust deed
ID proof of the founder of the trust
Proof of Registered Office - (Rental Agreement or Ownership Document)
Two Ngo Name Required: When we see your NGO name for registration whether any of these names are already registered.
Big misconceptions among people regarding tax payment of trust:-
There is a widespread belief that trusts do not have to pay taxes as they work for the benefit of the public. However, this is not the case. Taxes have to be paid by the trust just like any other legal company. To be tax-exempt, the trust must obtain certification from the Internal Revenue Service for exemptions such as 80G, Section 12A, and others.
FAQs on Trust Registration in India
1. How many types of Trust Registration are there?
A trust deed can be used to establish a trust. There are now two categories of trusts in India: Public Trusts and Private Trusts.
2. First of all what is the purpose of the trust?
Trusts are created to provide legal protection for the trustor's assets, to ensure that those assets are properly distributed to the intended beneficiaries, and to avoid or reduce inheritance or estate taxes.
3. Is there any certification for trust registration?
A trust registration does not require a specific certificate. On the other hand, getting the trust deed registered with the right authorities will suffice.