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Trust Registration Online

A trust can be created by execution of a trust deed; there are two types of trust. A public trust (charitable trust) is created for the benefit of general public where as a private trust is created for the benefit of a specific group of individuals known as the beneficiary.

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Trust Registration

The first step to register a trust starts with the drafting of a trust deed, the essential ingredients of a trust deed is provided in following parts of this page. The trust deed is to be executed on appropriate non-judicial stamp paper, the rate of stamp duty differs from state to state. The next step is to seek an appointment with the sub registrar office having jurisdiction based on the registered office of the trust, and the government registration fee is to be paid after that. 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 at by the office of the sub registrar, and the registered deed can be collected after a week time. The purpose for which a public trust can be created is for the benefit of general public, and the same must be clearly prescribed in the trust deed, as it guides its functioning in the course of time. Generally a public trust is created for setting up a school, colleges, other educational initiatives, hospital, old age homes, orphanage, for promotion of child health and their empowerment, welfare of weaker section of society, and for fulfillment of Corporate Social REsponsibilities (CSR) by companies under section 135 of the Companies Act, 2013.

Important Points on Trust

01
Indian Trusts Act, 1882 administers the private trusts whereas the common law directs public trusts except in the state of Maharashtra and Gujarat where public trusts are governed by Bombay Public Trusts Act, 1950.
02
In public charitable trusts, the most important instrument is the trust deed, and it is important that aims and objectives of the trust should be specified in the trust deed
03
There is no upper limit for the trustees, but minimum two trustees are always required for registration. The trust deed should have provision concerning the management of the trust along with the procedure of appointing or removing the members.
04
Both the settlor and trustee should sign the trust deed in the existence of two witnesses & remain present in the office of sub-registrar on the appointed date.
05
Privileges and tax benefits are not available to the private trusts, whereas public trusts after registration can avail tax exemptions.

Requirements to Form a Trust

01
Trustee: A trustee is a person who is assigned responsibility to carry out responsibilities of the trust deed for the benefit of the trust beneficiary. A trustee can be any person that is an individual or body corporate which is capable of holding property and competent to enter into a valid contract.
02
It is mandatory to register the trust deed in case it is a charitable or religious trust or about an immovable property. For the purpose of registration, settlor or trustees and at least two witnesses must be physically present at the office of sub-registrar.
03
In the case of change of the trustee or the registered office of the trust, or a change in the objects of the trust, a new deed with changed particulars is required to be prepared and registered.
04
The trust can be registered only in the state in which its registered office shall be situated; However, there is no restriction on its functioning and can operate on all India basis. A trust can be registered at residential place also.

Registered Address Proof

01
A trust can be created by any person who can enter into a contract as per section 11 of the contract act, 1872. It can also be formed by an HUF or an association of persons or a trust by women or by a company. With the permission of a principal civil court judge, a trust can be created by or on behalf of a minor.
02
The income of a trust is taxable at the rate of 30% by the revenue department, however, in the case of a public trust, an application for exemption from the tax can be filed if the objects of the trust are public welfare and are available for the general public.
The trust deed must contain following:
01
Name(s) and details of the author of the trust (settlor of the trust), Name and detail of the trustees and the particulars of the beneficiary of the trust, or whether it is for the general public or charitable purpose.
02
The name of trust, The place where the office of its trustee or its principal place is situated, The main aim and object of the trust & The details of the property which shall be part of trust
03
The procedure to appointment, removal or replacement of a trustee and their respective rights and duties. The rights and duties of the beneficiary and how trust can be determined