Online Trust Registration India
Trust implies the transfer of a property (cash, shares or valuable asset) from the owner to another person. There are two types of trusts – Private and Public. A private trust is formed for the benefit of a group of people. Public trust is formed for the benefit of the general public.
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Public Trust is the most convenient way of starting a non-governmental organization or NGO. A trust functions on the objective of eradicating poverty, providing education to the underprivileged and offering medical relief apart from the generalized aim of promoting arts, science and literature. It is to be noted that trusts are irrevocable which means they cannot be amended or terminated without the permission of the court. Bharatregister helps in providing you with the trust registration certificate with a few documents like a deed of trust, rental agreement, etc. In India, there are no specific laws to govern the public trust, however, some states like Maharashtra and Tamil Nadu have their own public trust Act.
Documents Required Online Trust Registration India
To get your trust registration certificate, you should require the following documents during the registration of the Trust:
- A completely drafted trust deed
- Proof of registered office – (Rental Agreement or ownership document)
- ID proof of the Founder of the Trust
- Two witnesses
What is the need to register a trust?
- As per the Public Trust Act of all states, registration of Trust is mandatory if it involves charitable purpose or when there is a transfer of immovable property in the name of the trust.
- Only registered trust is eligible for tax exemptions provided under Section 12 A and 80G of the Income Tax Act.
- Registering a trust adds more credibility to the same as it involves public money in the form of donations.
Online Trust registration Process
At Bharatregister helps you in providing with the trust registration online through very simple steps. As an initial step in registering the trust, the founder of the trust or the “Author of the Trust” or the “Settlor of the Trust” has to figure out in a document the objectives of the trust and the manner in which the trustees have to work towards achieving the goals of the Trust. This document that contains all such details is called a Trust Deed, which is also called a deed of trust.
Once this is made, thereafter, an application for registration of the trust shall be moved before the Registrar of Trust along with the Trust Deed or a deed of trust. The appropriate jurisdiction for registration of the trust is usually where the registered office of the trust is located.
Contents in a Trust Deed
The trust deed is the primary and the most essential document of the trust which states the reason for forming a trust, its functions, to its working, and until its closure. Following are the important clauses in the Trust Deed:
- Name of the trust
- The registered office of the trust
- Area of operation of the trust
- Objectives of the trust
- Details of the Author of the Trust
- Corpus/Assets of the Trust
- Details of the Board of Trustees
- Quorum of the Board with their qualification, terms and tenure
- Powers and functions of the Managing Trustee and other Trustees
- Closure and amendment of the trust deed and the applicability of the Act
FAQs on Online Trust Registration India
The Trustees do not have the right to sell the property, however, the trust properties can be sold after obtaining prior permission from the appropriate civil court.
The trust is usually irrevocable in nature. For reasons like disqualification of trustees, absence of trustees, mismanagement of the trust, the trust can be merged with a trust having similar objective with the permission of the court.