Trust Registration

Trust Registration in Chennai or Coimbatore or anywhere in India is governed by the Indian Trust Act, 1882.

Trust is a form of NGO. It’s a Legal Entity created by the First Party (Founder of the Trust), managed by the Second Party (Trustees) who holds the right, for the benefit of the Third Party (Beneficiaries of the Trust).

The Trust can be created by way of Trust Deed duly executed by the ‘Founder’ of the Trust. 

There are two types of trust, Public Trust and Private Trust. A public trust (charitable trust) is created for the benefit of the general public whereas a private trust is created for the benefit of a particular group of individuals known as the beneficiary.

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    Documents Required for Trust Registration

    Photograph

    Photograph

    Latest Passport size Color photograph of all the promoters (Shareholders and Directors)

    Identity Proof

    Identity Proof

    Any of the following ID: Passport, Voter ID/Driving License of Shareholders and Directors.

    Registered office Proof

    Registered office Proof

    Latest & Clear Telephone Bill/Electricity Bill/ /Water/Gas Bill of the registered office address

    Pan Card

    Pan Card

    PAN Card of all shareholders and Directors. Foreign nationals must provide a valid passport.

    Address Proof

    Address Proof

    Latest Bank Statement/Telephone Bill/Electricity or Gas Bill/Water Bill of Shareholders and Directors

    NOC from owner

    NOC from owner

    No Objection Certificate from owner(s) of the premises of registered office.

    Types of Trusts

    Public Charitable Trust

    Under the Public Charitable Trust, Beneficiaries are uncertain (For Ex: Benefit of the humanity at Large). But whereas the Beneficiaries of Private Trust is small group of specific people (For Ex: Benefit of the Specific group of Employees).

    Public Trust

    A Public Trust is eligible for all types of Tax Benefits. But whereas the Private trust is not entitle to get 12A Registration. Which simply to say, a Private Trust is not capable of enjoying Tax Exemption.

    Private Trust

    Private trust is for a closed group. In other words, the beneficiaries can be identified. For example: A trust created for the relatives and friends of the author.

    Features of Public limited Trust Registration

    Litigation

    Every Trust has its legal entity separate from its members it is capable of filing suits against any person or any member. The registered trust can file a suit anywhere in India and in any state even if it is not registered in that particular state

    Legal status

    Registration of trust gives it a legal status and that is very important because of various reasons like: for opening the bank accounts, Obtaining registrations and approvals under Income Tax Act, legally vesting properties.

    Tax Benefit

    The trust can take the tax benefit after applying for the 12AA/80G Certificate. Both the trust and the investor get tax exemptions.

    Process & Timeline for Company Registration

    You are requested to first fill the simple questionnaire provided by our expert team

    At the second step we will be requiring the documents in accordance with the questionnaire filled by you so that we can arrange them as per the requirement and for processing.

    Once the draft is ready from our side we will share a draft of the same with you for final approval. If you find the same in order the final copy will be shared in a day and if corrections or additions are required then the same will be revised and verified by our team

    After the approval of trust deed from your side we will apply for the registration of Trust before the Sub Registrar and update you regarding the same via mail.

    Frequently Asked Questions​

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

    A trust can be created via a trust deed. Presently, two types of Trust exist in India, mainly public trust and public trust.

    A trust may be formed by any person who is competent to contracts: This includes a person, HUF, AOP, establishment, so on and so forth. If a trust is formed on or behalf of an under-aged person, then the consent of a principal civil court of original is required.

    Trusts are set up to facilitate legal coverage to the trustor’s assets, ensure that such assets are lawfully distributed among the designated beneficiaries, and avoid or minimize inheritance or estate taxes.

    Common documents required for Trust registration given below:

    • Trust Deed
    • 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.

    A trustee, is authorized to sell land via public domain. He cannot sell the land by private contract.

    Unlike trusts, a society excels on improved democratic set-up with membership & an elected body to administer the Society. The serving members of the Society can remain in control as long as they as elected to the managing committee. Also, they have the right to leave out Society whenever they want. Such rights are not available to trustees.

    To obtain registration u/s 12A, the application in form 10A for registration of a charitable or religious trust can be made on the IT department portal.

    In Maharashtra & Gujarat, all societies must secure trust registered under the Bombay Public Trusts Act, 1950. A society may lead to winding up if 3/5th of the members have the intention to do so. A society is a more democratic and flexible set-up.

    To some extent, NGOs serve as an ancillary unit for a government that fulfil its philanthropic tasks. Trusts, on the contrary, are not dependent on the government’s programs. Trusts excel on separate policies since they can be private or public trusts.

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