Support 
Trust
What is Trust
As per the Indian Trust Act 1882, a Trust is an arrangement where the author/ owner (trustor) transfers the property to someone else (trustee) for the benefit of a third person (beneficiary).
Such a property is transferred by the author/ trustor to the trustee along with a proclamation that the trustee should hold the property for the beneficiaries of the Trust.
Who can register the Trust
Any Non Profit Organisations or any Individual holding the property can create and register the Trust. However, the NGOs have following another options also to get themselves registered which are as follow:
(i) Registration under Society Act
(ii) Registration under Section 8 of Companies Act, 2013
However, in case of registration under Society Act, there is requirement to have atleast 7 members of Governing Body, whereas in case of Trust there we need only three members to form a trust.
Moreover, in case of Section 8 companies under Companies Act, 2013, there are a no. of compliances to be followed which are comparative less in case of Trusts. Hence, as compared to above two options, formation and registration of Trust is less cumbersome and less expensive on part of registration and compliances.
Trusts can be classified into two categories:
Public Trust
The most preferred way to run an NGO or a non – profit organization is to form a Public Charitable Trust. It is a trust whose beneficiaries include the public at large. Further, a Public Trust can be further be subdivided into Public Charitable Trust and Public Religious Trust. The public trust may also be formed for following objects like To enhance cultural, academic and social condition of the people, work for democracy, good governance, peace, justice and cooperation., Encourage the people to develop a much better society, Work for rehabilitation of beggars in India, To do programs which help in education etc.
Private Trust
Biggest features of Trust Registration is that, those who want to involve family members as well in Trust can apply for Trust Registration. Hence, a private Trust is the one whose beneficiaries include families or individuals.
Process of Registration of a Trust
I. Minimum no. of members required are:
1. Author/ Settlor of the Trust
2. Trustee
3. Beneficiary
II. Selection of Name: Select a unique name of your trust, the name should not violate or infringes someone else name or trademark.
III. Drafting of Deed: The next step is to draft a trust deed. The trust deed is to be executed on appropriate non-judicial stamp paper, where the rate of stamp duty differs from state to state.
The settler must put his signatures on every page of the photocopy of the Trust Deed. Also, it is mandatory for the settlers as well as two other witnesses to be physically present along with their identity proof (original as well as self attested photocopy) at the time of registration.
IV. To obtain an appointment with the sub-registrar office having jurisdiction based on the registered office of the trust
V. Trust Registration: A trust deed is a document which requires mandatory registration before the registrar of the trusts having jurisdiction. On the appointed date the trust deed is presented before the sub-registrar where all trustees need to be present along with two witnesses. The registration process is then undertaken by the office of the sub-registrar.
VI. Obtain the Registration Certificate: After submitting the Trust Deed with the registrar, the registrar retains the photocopy and returns the original registered copy of the Trust Deed.
Documents required for Trust Registration are:
1. Trust Deed: The trust deed is the most important instrument in a trust, it prescribes the main objectives for which the trust is set up. Apart from the main objects of the trust, it defines its beneficiary and the powers of the trustee. The deed is signed in presence of two witnesses. The trust deed should have provision concerning the management of the trust along with the procedure of appointing or removing the members.
2. Passport size Photographs of all the parties to the trust deed
3. PAN Card of Each party to the trust
4. Adhaar Card of Each party to the trust
5. Rent Deed/ Registry copy fo teh property where teh address of trust is to be provided
6. Utility Bill of the Registered address of the Trust
Conclusion
Hence, instead of registration of societies or Section 8 companies by the non Government Organisations, it is quite less expensive and less time consuming process to get the Trust Registered for the benefits of the General Public
OUR BLOGS
- What is 12A and 80G Registration?
-
12A and 80G are two different registrations granted by the Income Tax Department to Non-profit organizations or NGOs that allows them to get tax exemption on the donations received from donors.
- What is the purpose of 80G Certificate Registration?
-
The purpose of 80G Certificate Registration is to incentivize the donors who make impactful financial contribution to the NGOs or Non-Profit organisations.
- What is the purpose of 12A Certificate Registration?
-
The purpose of 12A Certificate registration is to enable non-profit organisations such as section 8 company, trust, societies,NGOs to claim tax exemption on the donations received.
- What is the eligibility for registration of 12A and 80G Certificate?
-
The minimum requirements for registration of 12A and 80G Certificate are as follows:
- The organization must be a registered NGO
- NGO should not have any income generated from a business.
- The organisation must maintain a regular book of accounts in favor of their receipts and expenses.
