To register a Trust in India, the first step is to write a Trust Deed. The primary requirement for registering a Trust is to write a Trust Deed on non-judicial stamp paper, and stamp duty rates vary from state to state. A Trust Deed must be prepared and submitted to the subregistrar’s office. All Trustees must present the Trust Deed and two witnesses to the sub-registrar as part of the appointment process.
The Advantages of Indian a Trust Registration
- Providing much-needed financial assistance to the poor and needy is one of the main functions of the charitable operations of the registered Trust.
- The use of trusts can provide settlers and beneficiaries with capital and income tax relief. Trusts can provide better protection for settlers, beneficiaries, and Trust assets against more stringent taxation laws.
- Further, the Indian Trusts Act of 1882 prohibits third parties from bringing frivolous lawsuits against the Trust that could undermine its legal standing.
- In order to protect the family’s assets and to gain greater organizational flexibility when moving abroad, a Trust can be advantageous.
How Does Trust Get Formed in India?
An application for Trust Registration has to be filed with the Charity Commissioner in Maharashtra, for example, in order to register a trust To register a charity trust, one must apply to the state official with jurisdiction in the state where the trust will be formed. The registration form requires the names of the Trustees, succession mode, and nature of the trust.
Depending on the property and the State of registration, the application must also include a small registration fee as well as a court charge stamp of INR 2. A copy of the Trust Deed is also required. Upon completion of the Trust registration form, the applicant must sign it in the presence of either a Regional Officer of the Charity Commissioner’s Regional Office or a Notary.
How to Register a Trust in India: Required Documents
- You might need to provide evidence of the identity of the Trustor and Trustee, for example, a copy of their Aadhaar cards, a voter identification card, a passport, or a driving license.
- The landlord is responsible for certifying that the rental property does not have any objections.
- There is also a copy of the settlor and trustee’s identification and address in the original trust deed.
- Stamp value on trust deed is accurate.
- A photo of each trustee and settlor.
- Trustees’ and settlors’ PANs.
- Listed below are the requirements for the how to open a trust
FAQs on Trust Registration in India
Is it possible to register a trust in a variety of ways?
Indian law recognizes two types of trusts: Public Trusts and Private Trusts. Public Trusts are established by a trust deed.
Firstly, why is trust so important?
It provides legal protection for one’s assets, ensures that they are delivered to their intended beneficiaries, and minimizes or avoids inheritance taxes.
Is it possible to set up a trust that is tax-exempt?
It is possible to register charitable or religious trusts under s. 12A by completing Form 10A for Registration of a Charitable or Religious Trust.