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Trust Registration

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Get your Trust Registered at just ₹ 10000/-

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Introduction

Trust Registration is governed by the Indian Trust Act, 1882 where the author (owner) assigns the rights of the property to a trustee so that the beneficiary i.e. the third person can take benefit out of it. The trust is carried out by way of an instrument called trust deed which is formed on a non-judicial stamp paper as per the stamp rates of the different states.

Trust Deed is the core document which defines the reason for formation of trust, details of the author, trustee and the beneficiary. It lays down all the working and functioning of the trust until its closure. The trust deed is registered with the sub-registrar of the concerned jurisdiction.

Advantages
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Advantages of Trust Registration

Litigation

Every Trust has its legal entity separate from its members it is capable of filing suits against any person or any member. The registered trust can file a suit anywhere in India and in any state even if it is not registered in that particular state

Legal status

Registration of trust gives it a legal status and that is very important because of various reasons like: for opening the bank accounts, Obtaining registrations and approvals under Income Tax Act, legally vesting properties.

Tax Benefit

The trust can take the tax benefit after applying for the 12AA/80G Certificate. Both the trust and the investor get tax exemptions.
Parties
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Parties under Trust

Types
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Types of Trust

Private Trust

Private trust is for a closed group. In other words, the beneficiaries can be identified. For example: A trust created for the relatives and friends of the author.

Public Trust

It is a trust formed for public, religious or charitable purpose or both and includes a temple, or any religious or charitable institution and formed either for a religious or charitable purpose or for both.

Document
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Document Required

PAN Card

of Trustor, Trustee, Beneficiary

Self-attested copies of Identity Proof

(Trustor, Trustee, Beneficiary)

Photograph

of Trustor, Trustee, Beneficiary

Address Proof

of Registered Office

Process
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Process of Trust Registration

Complete the Application Form

You are requested to first fill the simple questionnaire provided by our expert team.
Direction Arrows
Step 01

Document Processing

At the second step we will be requiring the documents in accordance with the questionnaire filled by you so that we can arrange them as per the requirement and for processing.
Step 02

Drafting of Trust Deed

Once the draft is ready from our side we will share a draft of the same with you for final approval. If you find the same in order the final copy will be shared in a day and if corrections or additions are required then the same will be revised and verified by our team
Direction Arrows
Step 03

Trust Registration

After the approval of trust deed from your side we will apply for the registration of Trust before the Sub Registrar and update you regarding the same via mail.
Step 04
Certificates
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12A and 80G Certificates

Income Tax Department issues 12A certificate to the trusts or NGOs that are involved in social welfare. Such certificate is issued for a period of 5 years and can be renewed after making an application and is not liable to pay Income tax for the entire lifetime on its surplus income. Additionally, an NGO can also apply for 80G certificate. This certification provides the donor benefit under Income Tax Act as deduction.
Faq's
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FAQs on Trust Registration

Is registration of trust mandatory?

Registration of Trust is mandatory in certain cases and not mandatory in some other cases. If Trust wanted to take benefits under section 11 of Income Tax Act, the trust is required to get registered under Indian Trust Act 1882.

Which is better trust or society?

Trust is a legal arrangement between 2 or more person in which a person holds property for the sake of some other person on the other hand Society is an association of person, who come together to fulfill any particular purpose, described under the Act.

What is Family trust?

Family trusts are designed to protect our assets and benefits of members of the family beyond the lifetime of members.

How do we start Education Trust?

Educational trust can be registered either as a company under the companies act or as a society under societies registration Act.

How many people are needed to form a trust?

A Trust can be formed and registered with a minimum number of members 03 and a maximum of 21 members.

What is trust registration certificate?

A Trust or an NGO has to acquire certificate 12A from the Income Tax Department. This certificate allows donors, to make donations under section 80G in certified NGO, to avail deduction.

What is the difference between trust and NGO?

NGO is non government organization while a trust can be public private or family. Both NGO and trust works for the benefits of society.

Can a trust be registered as a society?

Societies are membership organizations that can be registered for charitable purposes. Societies are as similar to the trusts, although there are some essential differences. While only 3 individuals are required to form a trust, a minimum of 7 individuals are required to form a society.

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