Patnaconsultant provides Trust registration services, trust formation services, trust auditing services and trust tax consultancy services. Trust is type of NGO (Non Profit Organization) which is runs by the persons or entities who wants do to something for our society. We will give you all important information about Trust Registration in this article in brief. We will also help you in documents preparation for daily business of the Trusts.

Trust Registration

Trust is registered as per provisions of Indian Trust Act, 1882. Indian Trust Act, 1882 provides Trust is classified into two types.

Private trust in which beneficiaries is individuals or families.
Public Trust in which beneficiary is large number of normal public.

In Trust all profits is used to promotion of public welfare. Trust are made for providing social welfare works like women empowerment, Girls educations, education for all peoples, providing safety benefit to Animals, Setting up of school , Collages, Hospitals Old Age Homes, Orphanage etc. Trust registration is created by execution of trust deed non judicial stamp paper (in Bihar stamp duty is differs from other states). In Trust registration minimum 3 members is required at a time of registration after registration number can be increased by Resolution in Trust meeting. Trusty, president and Settler is main post in Trust Formation. All day to day activity of trusts is runs by the President of Trust. All assets of Trust are property of Trust not its members. In Trust Registration no limit for the members is given by this act. Trustees is only worker of trust, Trust is legal entity in eyes of law.

Advantage of Trust Registration

Providing social works for the benefits of society.
Providing benefit in claiming exemption under income tax.
For the Welfare of the beneficiary and his family member
For CSR activities of companies
Donations from Governments and other publics.
Limited liability of Members
Flexibility in distribution of benefit among beneficiary.

Process of Trust Registration

Preparation of trust deed on non judicial Stamp paper.
Government registration fee payment.
Registration made with sub registrar office where the registered office of trust is situated.
All members present during the registration with his documents and two witnesses.
After 3 or 4 working days registered Trust deed is collected from sub registrar office.

Can we do Trust Registration online?

Till now Trust registration is fully based on offline registration. In which involvement of State Government is mandatory through sub registrar. Send us your all documents we will prepared trust Deed and after that one day all members are coming to sub registrar office. You can pay us online .

In India, trusts have long served as vehicles for philanthropy, social welfare, and community development. Trusts play a crucial role in channeling resources towards charitable causes, providing support to marginalized communities, and fostering societal well-being. However, to formalize their operations and enjoy legal recognition, trusts must undergo a process known as Trust Registration. In this blog, we’ll explore what Trust Registration entails, why it’s essential for trusts in India, and the step-by-step process to obtain it.

Understanding Trust Registration:

Trust Registration is the process by which a trust formally registers itself under the provisions of the Indian Trusts Act, 1882, and other relevant laws governing charitable organizations and non-profit entities. It involves submitting an application to the appropriate authority, typically the office of the Charity Commissioner or Registrar of Trusts, and fulfilling prescribed requirements to obtain legal recognition and validity as a trust.

Why Trust Registration is Essential in India:

Legal Recognition: Trust Registration provides legal recognition to the trust as a distinct legal entity capable of owning property, entering into contracts, and undertaking activities for charitable purposes. It ensures that the trust operates within the framework of the law and enjoys the rights and privileges accorded to registered charitable organizations.
Tax Benefits: Registered trusts are eligible for various tax benefits and exemptions under the Income Tax Act, 1961. Contributions made to registered trusts may qualify for deductions under Section 80G of the Income Tax Act, incentivizing donors to support charitable causes and enhancing fundraising efforts for the trust.
Credibility and Transparency: Trust Registration enhances the credibility, transparency, and accountability of the trust in the eyes of donors, beneficiaries, and stakeholders. It demonstrates the trust’s commitment to ethical practices, governance standards, and financial transparency, fostering trust and confidence among stakeholders.
Access to Funding: Registered trusts have greater access to funding opportunities, grants, and donations from government agencies, corporate donors, philanthropic foundations, and individual donors. Trust Registration enhances the trust’s credibility and eligibility for funding, enabling it to mobilize resources and expand its impact on society.
Regulatory Compliance: Trust Registration ensures compliance with regulatory requirements, reporting obligations, and legal formalities prescribed for charitable organizations under applicable laws. It mitigates the risk of legal liabilities, disputes, or sanctions and provides a framework for governance, management, and administration of the trust.

How to Get Trust Registration in India:

Now, let’s explore the step-by-step process to obtain Trust Registration in India:

1. Trust Deed Preparation:

Draft a Trust Deed outlining the objectives, purposes, rules, regulations, and administrative structure of the trust. The Trust Deed should be prepared in accordance with the provisions of the Indian Trusts Act, 1882, and other applicable laws, and signed by the settlor and trustees.

2. Choose a Name:

Select a unique and appropriate name for the trust, reflecting its mission, values, and charitable purposes. Ensure that the chosen name is not similar to the name of any existing trust or registered entity to avoid conflicts or confusion.

3. Identify Trustees:

Identify and appoint trustees who will oversee the management and administration of the trust. Trustees should be individuals of sound mind, legal capacity, and integrity, capable of fulfilling their fiduciary duties and responsibilities towards the trust and its beneficiaries.

4. Application for Registration:

Prepare and submit an application for Trust Registration to the appropriate authority, typically the office of the Charity Commissioner or Registrar of Trusts, in the jurisdiction where the trust is proposed to be registered. Include the Trust Deed, identity proofs, address proofs, and other supporting documents as required.

5. Verification and Scrutiny:

The registering authority will scrutinize the application, Trust Deed, and supporting documents to ensure compliance with legal requirements, validity of the Trust Deed, and fulfillment of prescribed conditions. Any deficiencies or discrepancies may be addressed through clarifications or amendments.

6. Registration Certificate:

Upon satisfactory verification and scrutiny of the application, the registering authority will issue a Registration Certificate, officially recognizing the trust as a registered charitable organization. The Registration Certificate includes details such as the name of the trust, registration number, date of registration, and validity period.

7. Compliance and Renewal:

Ensure compliance with regulatory requirements, reporting obligations, and legal formalities prescribed for registered trusts under applicable laws. Renew the registration periodically as per the prescribed renewal schedule and update any changes in the trust’s objectives, trustees, or administrative details as necessary.

Conclusion:

In conclusion, Trust Registration is a pivotal step for charitable organizations in India to formalize their operations, gain legal recognition, and unlock various benefits and opportunities. By obtaining Trust Registration, trusts can enhance their credibility, transparency, and access to funding, enabling them to pursue their philanthropic objectives and make a positive impact on society. Whether you’re establishing a charitable trust for social welfare, education, healthcare, or environmental conservation, Trust Registration provides the legal framework and legitimacy to fulfill your noble aspirations and create a lasting legacy of service and compassion.