Trust Registration

 Establishing a non-governmental organization (NGO) is most effectively achieved through the formation of a Public Trust. This type of trust is dedicated to addressing issues such as poverty alleviation, education for disadvantaged groups, and medical assistance, in addition to its broader mission of fostering the arts, sciences, and literature. It is important to understand that trusts are irrevocable, meaning they cannot be altered or dissolved without court approval. Vakilsearch offers assistance in obtaining the trust registration certificate, requiring only a few documents, including a deed of trust and a rental agreement.

In India, there is an absence of comprehensive legislation specifically addressing public trusts; however, certain states, such as Maharashtra and Tamil Nadu, have enacted their own public trust Acts.

Online Trust Registration – An In-Depth Procedure

Vakilsearch facilitates the online registration of trusts through a straightforward process. The first step in this registration involves the trust’s founder, referred to as the “Author of the Trust” or the “Settlor of the Trust,” drafting a document that outlines the trust’s objectives and the responsibilities of the trustees in fulfilling these goals. This document, which encompasses all relevant information, is known as a Trust Deed, also referred to as a deed of trust.

Following the establishment of the trust, an application for its registration must be submitted to the Registrar of Trust, accompanied by the Trust Deed or a deed of trust. Typically, the appropriate jurisdiction for registering the trust is the location of its registered office.

Provisions of the Trust Deed.

The trust deed serves as the fundamental and most critical document of the trust, outlining the rationale for its establishment, its operational functions, and the procedures governing its management until its termination. The following are key provisions included 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
• A 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

Documents Required

In order to obtain your trust registration certificate, it is necessary to present the following documents at the time of Trust registration:

• A completely drafted trust deed
• Proof of registered office – (Rental Agreement or ownership document)
• ID proof of the Founder of the Trust
• Two witnesses

Establishment of the Trust Agreement

The Trust is represented by the Board of Trustees. The Board is composed of the following members:

• Author/Founder/Settlor of the trust
• Managing trustee(s)
• Other trustees

The maximum number of members constituting a quorum for the Board of Trustees shall not exceed 21.

Why 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.

A trust that is duly registered qualifies for the tax exemptions outlined in Section 12 A and 80G of the Income Tax Act.