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PROCEDURE FOR TRUST REGISTRATION

  • Fill Query form- You are required to fill details in our simple online form & submit documents.
  • Call to discuss- Our expert will connect with you & prepare documents.
  • Signing of Required Docs: After submitting your documents we will provide you Documents for signing.
  • Registration Completed: One we will Submit Documents to Registrar for Registration then The Registration will be completed soon.

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About

A trust in immovable property may be created by two means, one by a non-testamentary document and the other by a testamentary document such as a will.

The Movable Property Trust can not be created orally, but must be properly registered. A trust in a moveable property may be created either by a document or by delivering the property to the trustee with the necessary oral instructions. If the instructions are given in writing, a non-testamentary document, which may or may not be registered, would be a trust.

The main objective is that the trust should be created for a lawful purpose.

The Trust may be both private and public.

Private Trust-Where the purpose of the trust is to benefit an individual or a group of individuals or their descendants from any legal person and who is capable of holding property, the trust is a private trust.

Public trust-When the purpose of the trust is to the benefit of the public or of any section of the public, it is public trust.

The Indian Trusts Act, 1882 regulates and administers private trusts in India, while public trusts direct the functioning of public trusts except in the state of Maharashtra and Gujarat, where public trusts are governed by the Bombay Public Trusts Act, 1950.

Document Required

Before you register your trust you will need to decide the following:

  1. Name of the trust
  2. Address of the trust
  3. Objects of the trust (charitable or Religious)
  4. One settler of the trust
  5. Two trustees of the trust
  6. Property of the trust-movable or immovable property (normally a small amount of cash/cheque is given to be the initial property of the trust, in order to save on the stamp duty).
  7. Prepare a Trust Deed on stamp paper of the requisite value (8% of the
    value of property of the trust in Delhi. The rate varies from state to state)

Documents Required for Trust Registration :

  1. Minimum two members identity proof  and Photographs required. (Voter ID | Driving License | Passport | Adhaar Card.)
  2. One passport size photograph & copy of the proof of identity of the settler
  3. One passport size photograph & copy of the proof of identity of each of the two witnesses.
  4. One electricity or water bill of registered address.

Requirement for registration of Trust Deed with the Local Registrar under
the Indian Trusts Act, 1882:

  1.  Schedule 2 which is the Application for Registration [with Rs. 100 Court Fee Stamp stuck on]
  2. Trust Deed on stamp paper of requisite value.
  3. Consent Letter signed by all Trustees.
  4. Affidavit signed by the Settler (this is to be handed over on the day of the Hearing, after completion of the Hearing) [with Rs. 10/- Court Fee Stamp]
  5. One passport size photograph & copy of the proof of identity of the settler
  6. One passport size photograph & copy of the proof of identity  (Voter ID | Driving License | Passport | Adhaar Card.) of each of the two trustees. (Minimum two members identity proof required)
  7. One passport size photograph & copy of the proof of identity of each of the two witnesses.
  8. One electricity or water bill of registered address
  9. NOC from the owner of the property that is proposed as the Registered Address for the Trust, for the use of this address as the registered address of the Trust, Signature of settler on all the pages of the Trust Deed
  10. Witness by two persons on the Trust Deed.
  11. Founder / Settler have to come to Delhi for presentation in the registrar office
  12. At the time of registration, the settler & two witnesses are required to be personally present, alongwith their identity proof in the original.

 

It may be observed that three types of persons are involved in the creation of a trust—

(i) Author/ settlor of the trust i.e. the person who reposes or declares the confidence;
(ii) Trustees i.e., the persons who accept the confidence;
(iii) Beneficiary i.e., the person(s) for whose benefit the confidence is accepted.

A trust is created when a settlor transfers property to a trustee to hold it for the benefit of one or more beneficiaries.  A settlor and a trustee are two distinct roles, although one person can serve in both capacities. A settlor creates the trust and can reserve important powers with respect to the trust. The trustee is obligated to manage the trust, in accordance with state law, after its creation and until the termination of the trust.

What You Get

TRUST DEED AND TRUST CERTIFICATE

Advantage

A registered Trust Deed has the following advantages;

  1. A registered Trust Deed becomes an official document which carries support and force of law.
  2. A registered Trust Deed effectuates transmutation of possession
  3. A conveyance of trust property to the trustee under a registered deed is generally not open to challenge.
  4. However, in case of a charitable or religious trust, in relation to an immovable property, for claiming exemption U/s. 11of the Income Tax Act, it is essential that the instrument of trust is duly registered

Time Duration

10-30 DAYS

Faq's

1, What's a Trust Registration?

Trust is registered and is governed by the Indian Trust Act. Simply put, it is a financial vehicle that transfers property from its owner to a trust for a lawful purpose. Usually we hear the word trust for the purpose of religion, but there is no such restriction. Even sports academies are registered as trusts.

In India, some companies are registered as public trusts. You will often even hear about the rich creating private trusts; this is done because of the tax-efficient nature of the trust (dividend distribution tax or minimum alternative tax do not apply). It's the easiest way to move than to make a will. However, it does involve a lot more effort to register a trust than to write a will.

 

2. Who are the Parties to the Trust?

  • Author / Setlor / Trustor / Donor (Mr. X): The person who wants to transfer his property and trusts another person to build the trust.
  • Trustee : the person who accepts the trust for the creation of the
  • Beneficiary Trust: the person who will benefit from the trust in the near future.

3. What's the Procedure For Registration of Trust?

  1. The first step in registering a trust begins with the drafting of a trust act. The trust deed is to be executed on appropriate non-judicial stamp paper, the rate of stamp duty differs from State to State.
  2. The next step is to seek appointment with a sub-registrar having jurisdiction based on the trust's registered office, and the government registration fee is payable thereafter.
  3. The trust deed shall be presented to the sub-registrar on the appointed date, where all trustees must be present along with two witnesses.
  4. The registration process shall then be carried out by the sub-registrar's office and the registered document may be collected after one week.
  5. The next logical step is to get the PAN and TAN number assigned to the trust and to open the A / c bank to the trust.

4. Who can set up a trust?

A trust may be established by:

  • any person who is competent to enter into contracts: this includes an individual, AOP, HUF, company, etc.
  • If a trust is to be established on or on behalf of a minor, permission from the Principal Civil Court of the original jurisdiction is required.

It also depends on the law in force at that particular point of time and on the extent to which the author of the trust may intend to dispose of his property.

5. Do I need a trust deed consultant?

For the purposes of trust registration the trust deed does not require any specific certification from any professional trust registration consultants, however, you may need our services for the proper preparation of the trust deed, for the appointment of the trust registrar and for operational assistance while you are present at the registry office for the registration of the trust deed.

6. WHAT ARE THE COMPLIANCES AFTER REGISTRATION?

  • Obtaining a PAN card for the society from the Income Tax Department.
  • Opening a Bank account for the society for the regulation of funds of the society.
  • Getting the exemption under Section 80 (G) of the Income Tax Act for exempting the donations from taxation.
  • Getting clearances from RBI for receipt of foreign funds in the society.

 

7. HOW TO FORM A TRUST

  • A trust may be established for a lawful purpose in accordance with Section 4 of the Indian Trust Act 1882;
  • a trust should have a document written and signed by trustees or a sole trustee;
  • a trust may also be established through a will;
  • there is no definite form of building trust.

The objectives of the trust should be clear and clear.

8. WHAT is the tenure of TRUSTEE?

Tenure of trustees will be One Year to 5 Years.