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What is Trust?

A trust can be made by completing a trust deed; the trusts are of two types. A private trust which is created for the benefit of an individual also know as a beneficiary or particular group and the second one is a public trust also known as charitable trust is created or made for the benefit of the general public. If you want to seek assistance related to trust registration online you can contact our professional at Valcus in Delhi.

The first and foremost step to register a trust starts from drafting a good trust deed. It is important that any trust deed is to be created on appropriate non-judicial stamp paper. Every state has its rate of stamp duty. The second step is to book an appointment based on the registered office of the trust jurisdiction with the sub-registrar office, along with the government registration fee. Unlike other type of trusts, educational trust registration is also mandatory in the country India.

As per the appointed date assigned by the sub-registrar all trustees along with trust deed need to be present with two witnesses. It takes approx. two weeks for the registration process by the office of the sub-registrar, after that collect registered deed can be collected. The third and most important step is to get the PAN Number and TAN Number allotted for the trust and then you can open a Bank A/c with any bank for your registered trust. We also assist and provide trust registration service. You can choose us for the professional and committed services always.

Overview of Trust registration

Trust registration is a process of legalizing the trust deed by the registrar of the respective jurisdiction. The Trust is the legal medium responsible for the lawful distribution of the settlor’s assets among the related beneficiaries. The new trust registration process starts soon after the registrar provides its authorization to the trust deed.

What is Trust in an Indian Context?

The Indian Trust registration Act 1882 governs all registered Trusts within the country and streamlines the legal provisions for the same. The Trust is commonly referred to as a legal arrangement where the Trust’s owner transfers the property to the concerned Trustee. The main purpose of the Trust is to ensure smooth and hassle-free transfer of the Trustor’s assets among the beneficiaries as per the clauses mentioned in the Trust deed.

Different types of Trust that exist in India include:

  • Revocable
  • Testamentary
  • Irrevocable
  • Charitable
  • Asset protection
  • Spendthrift

Why to register a trust?

  1. If your organisation involves charitable purposes, or if there is a transfer of immovable property on the name of the organisation.
  2. Registration of Trust is mandatory as per the Public Trust Act of all states.
  3. Tax exemptions can only be provided to the registered trust under Section 12 A and 80G of the Income Tax Act.

Who can form a Trust?

Trust for any legal purpose(s) can be formed or created by any individual over 18 years of age. . Apart from individuals, an association of persons, a company, society or firm is also eligible for creating trust. In a special case of a minor, the permission of a principal civil court of original jurisdiction is required to create a trust on behalf of a minor.

If you are looking for Trust registration anywhere in India, then you are at the right place. VALCUS has a team of professionals who can provide you with all the assistance about the registration of this entity. Our professionals will make sure that your trust gets registered with minimum effort and in proper time and help you with trust registration online

Our panel of professionals at VALCUS with their sound professional knowledge helped many organizations to meet their requirement to register themselves as one licensed charitable or non-profit institutions..

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What are the different kinds of Trusts in India?

Broadly, there are three kinds of trusts in India including:

• Public Trust Registration  • Private Trust  • Public Cum-Private Trust

The private trusts works as per the provisions of the Indian trusts Act, 1882. The public trusts are divided into religious & charitable trusts. The Religious Endowments Act, 1863, Charitable and Religious Trust Act, 1920, the Bombay Public Trust Act, 1950 are a few of the main statutes for the enforcement of public trusts in the country.

Private Trust

Private Trust means a legal arrangement established for the advantage of individuals instead of a public or charitable purpose. This trust is established for the financial benefit of one or more beneficiaries who are referred to as the Trustee. Private Trust doesn’t serve a charitable purpose, and the benefits are provided to designated beneficiaries. These kinds of trusts are supposed to adhere to the provisions of the Indian Trusts Act, 1882.

Public Trust

The main purpose of establishing a Public Trust is to provide benefit to the public at large. Unlike private trusts, public trusts don’t function under the Indian Trusts Act and are established to serve a charitable or religious agenda. These trusts adhere to general law, the ones that exist at that time.

Public-Cum-Private Trusts

Similar to its name, the Public-Cum-Private Trusts serve a dual purpose. The income earned can be used for the public as well as private purposes. So the beneficiaries of these kinds of Trust could be either public or private persons or both.

The Documentation for a Trust Registration in India

Beneath are the key requirements for trust registration:

  • Proof related to Identity for Trustor & Trustee such as Aadhaar Card, Voter ID, Passport, and DL
  • Address Proof related to Registered Office such as Copy of Certificate of Property/Utility Bills
  • No objection certification from the Landlord if the property is rented
  • Trust deed’s objective
  • Detail about the Trustee and settlor such as Self-attested copy Id & Address Proof and occupation
  • Trust Deed on Proper Stamp Value
  • Trustee and settlor Photos
  • Trustee and settlor
  • PAN details

A Trust deed must reflect the following information:

  • Number of trustees
  • Trust registered address
  • Proposed name of trust
  • Proposed Rules that will govern the trust
  • Presence of settlor as well as two witnesses at the time of registration of Trust

The Key advantages of choosing Valcus for Trust registration

  • The experts at Valcus are highly experienced in offering support concerning Trust Registration and its compliance.
  • The experts provide error-free legal advice
  • Assistance in all crucial matters
  • We make sure that you get better clarity on the governing provisions of Trust in India

FAQs

Trust registration is still not a legal compulsion for a private trust to have a Will. In the case of a Public trust, which is related to moveable or immovable property &whether created under a will or inter vivos, trust registration is optional.

A trust can be created through a trust deed. At present, there are two kinds of Trust which exist in India, including public trust and private trust.

A trust may be formed by any person who meets all the requirements. It includes a person, HUF, AOP, establishment, etc. In case a trust is established on behalf of an under-aged person, then it is important to provide the consent of a principal civil court of origin.

In case your organization is involved in charitable purposes or if there is a transfer of immovable property in the name of the organization, then you need to register a trust. As per the Public Trust Act registration, it is compulsory to have the registration a Trust.

NGOs are the ancillary units of a government that are created to fulfill its philanthropic tasks. However, trusts, on the other hand, are not dependent on the government’s programs. Trusts work as per different policies as there can be both, private or public charitable trust registration.

Some of the most common documents needed while doing new trust registration online is given below:

  • Trust deed registration
  • Identification proof such as Passport, DL, Voter ID, Aadhaar Card, etc.
  • Passport size photos of all the involved parties
  • Aadhaar Card for each party of the Trust

The teams at Valcus are experts in registration including a new trust registration in the country.

For the information on requirement for trust registration you can contact the experts at Valcus.

For the detailed and relevant information on charitable trust registered under which act you can connect with our experienced experts at Valcus.

The Indian Trusts Act, 1882 in India is a law that is related to private trusts and trustees. The Act defines clearly the terms under which what lawfully could be termed as a trust and who legally can be allowed to be its trustees. It also provides a definition for the term trust and trustee.