Trust Registration

Trust registration in India begins with the drafting of a deed of trust because it is that the first requirement within the trust registration online procedure. Trust Deed is the mandatory document to register a charitable trust and that is the reason why charitable registration is also called a trust deed registration. As per the Indian Trust Act 1882, the Trust is an organization where the owner (trustor) determines to transfer the power and right of his asset to a second person called trustee in order that the beneficiary can enjoy the benefit out of it.

What is a Trust?

As per the Indian Trust Act 1882, the Trust is a corporation during which the owner or trustor adjudicates to transfer the facility and right of his property or asset to a second person named trustee which means that the third person or beneficiary can get the benefit out of it.

Such an asset or property is transferred by the trustor to the trustee with the declaration of the statement that the trustee should own the asset or property for the recipients of the Trust.

Categories Of Trust

Public Trust

This type of trust is created to furnish benefit to the public on a vast level, therefore the beneficiaries in the type of trust are the general public. Public Trust is further classified into two parts:

1. Public Charitable Trust
2. Public Religious Trust

Private Trust

In this type of trust mostly the family members or individuals are the beneficiaries. A private trust is further classified into two parts:

1. Private Trusts in which the recipients and their imperative offers also can be settled
2. Private Trusts during which both or either the recipients and their imperative offers cannot be settled

What Documents are Required for Trust Registration?

Below-mentioned documents are required for Trust Registration-

• Proof of Identity for Trustor & Trustee-Aadhaar Card, Voter ID, Passport, Driving License
• Address Proof of Registered Office- Copy of Certificate of Property/Utility Bills (Telephone, Water, Electricity Bill)
• In the case of rented property, NOC from the Landlord is required.
• The objective of the Trust Deed.
• Particulars of the Trustee and settlor (Self-attested copy Id and Address Proof alongside the knowledge associated with occupation).
• Trust Deed on Proper Stamp Value.
• Photographs of Trustee and settlor.
• PAN Card of Trustee and settlor.

In addition to that, the Trust deed contains the following information:-

• Total number of trustees.
• The Registered Address of the trust.
• Proposed name of the trust.
• Rules and regulations to be strictly followed by the Trust.
• Presence of settlor and 2 witnesses at the time of registration of Trust.

What is the Procedure for Trust Registration?

The procedure for Trust registration involves the below-mentioned steps-

Select An Appropriate Name

The very initiative while registering the Trust is to pick an appropriate name for the trust. An applicant must take into consideration that the name so suggested shouldn't come under the restricted list of names as per the provisions of the Emblems and Names Act, 1950.

Drafting Of Trust Deed

For Trust registration, the deed of trust should be drafted. A deed of trust may be a document that contains all the important information associated with the registration and therefore the deed must be present before the Registrar at the time of registration.

Selecting Settlers And Trustees Of Trust

The next step is to pick the settlor and Trustees of the Trust. However, there's no specific provision with regards to the number of settlers/authors. Further, there must be a minimum of two trustees to make a Trust.

Preparing Memorandum Of Association

For Trust registration, it's important to formulate the Memorandum of Association because it represents the charter of the Trust.

Paying The Requisite Fees

The next step is to pay a requisite fee for Trust registration.

Collection Of A Copy Of Trust Deed

Once an applicant submits the papers, he/she can collect a certified copy of the Trust Deed within 1 week from the registrar’s office.

Submission Of Trust Deed To Registrar

After obtaining a licensed copy of the deed of trust, submit an equivalent with the local registrar. The deed of trust shall be submitted alongside properly attested photocopies.

Obtain Registration Certificate

After submitting the deed of trust with the registrar, the registrar keeps the photocopy and returns the first registered copy of the deed of trust to the applicant, and also issues the certificate within seven working days.