February 22, 2024
Trusts are a common form of a non-profit organization that can be used for a wide range of charitable and social purposes. In India, trusts are governed by the Indian Trusts Act, of 1882. Trusts can be created for a variety of purposes such as education, medical relief, poverty alleviation, and other social and charitable causes. In this article, we will discuss the process of trust registration in India, including the requirements, procedures, and documents needed.

Requirements for Trust Registration in India

The following are the essential requirements for registering a trust in India: Trust Deed: A trust deed is a legal document that outlines the rules and regulations governing the trust’s operations. The trust deed must include the trust’s name, the names of the trustees, the trust’s objective, and the mode of appointment and removal of trustees. The trust deed must also specify the powers and duties of the trustees, the rules for managing the trust’s finances, and the mode of amending the trust deed. The trust deed must be executed on non-judicial stamp paper and signed by the settlor and the trustees. Trustees: The trustees are the individuals responsible for managing the trust’s affairs. A trust must have at least two trustees, and there is no maximum limit on the number of trustees. The trustees must be over 18 years of age, of sound mind, and not disqualified from holding a trustee position under any law. Registered Office: The trust must have a registered office in India. The registered office is the address where all legal and official correspondence related to the trust will be sent.

Procedure for Trust Registration in India

The following is the procedure for registering a trust in India: Trust Deed: The first step in registering a trust is to create a trust deed. The trust deed must be executed on non-judicial stamp paper, and the value of the stamp paper depends on the state where the trust is being registered. Application: Once the trust deed is created, an application for registration of the trust must be submitted to the registrar of the area where the trust’s registered office is located. The application must be signed by all the trustees and accompanied by the following documents: a. Copy of the trust deed b. Proof of address of the registered office c. Details of trustees, including name, address, occupation, and PAN card detailsd. Affidavit by the settlor and trustees declaring that the trust has been created for a lawful purpose and that the contents of the trust deed are true and correct to the best of their knowledge.

Conclusion

Trusts are a popular form of a non-profit organization in India, and the registration process is straightforward. The trust deed is the most critical document for registration, and it must be created on non-judicial stamp paper and signed by the settlor and trustees. The trustees must meet certain eligibility criteria, and the trust must have a registered office in India. The process of registration involves submitting an application to the registrar, along with the required documents and payment of fees. Once the trust is registered, it can apply for a PAN card and open a bank account in the name of the trust.

Leave a Reply

Your email address will not be published. Required fields are marked *