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Key Features & Benefits
- Purpose-Driven: Trusts are established for social welfare, charitable, or public benefit purposes.
- Legal Framework: Governed by the Indian Trusts Act, 1882, or Bombay Public Trusts Act, depending on location.
- Number of Members: Minimum 2 persons required; no upper limit.
- Stamp Duty: Trust deed executed on non-judicial stamp paper (stamp duty varies by state).
- Trust Deed: Documents objectives, management structure, and operational rules.
- Board Composition: Changes are mainly by appointment, not election.
- Alteration of Objects: Only the settlor can modify objectives.
About Trust Registration
A trust is a non-profit entity formed to serve the public or specific beneficiaries. Trusts can focus on areas like education, public welfare, medical aid, poverty alleviation, and other charitable purposes.
Types of Trusts
- Public Trust: Open for the general public to benefit from charitable services, including food, education, and healthcare.
- Private Trust: Established for a specific purpose and limited beneficiaries (e.g., family). Private trusts declared by will often do not require registration.
Importance of Trust Creation
- Protects and manages assets efficiently.
- Preserves family wealth and supports succession planning.
- Facilitates tax mitigation and compliance for charitable activities.
Documents Required for Trust Registration
- Proof of identity and address of settlor, trustee, and beneficiaries
- Trust deed on stamp paper of requisite value
- Registered office address proof
- Passport-sized photographs of all involved parties
- Details of objectives, capital, and responsibilities
Documents Required for Trust Registration
Step 1 – Select a Unique Name:
Ensure the name is not similar to any existing trust or trademark.
Step 2 – Draft Trust Deed:
Prepare the trust deed on stamp paper with:
- Settlor, Trustee, and Beneficiary details
- Objectives and management structure
- Stamp duty as per state regulations
Step 3 – Registration with Local Authority:
Submit the deed to the local Registrar of Trust under relevant Trust Act. Include:
- Identity proofs of settlor, trustee, and witnesses
- Trust deed on stamp paper
Step 4 – Signing & Verification:
Settlor and two witnesses must sign all pages in the presence of the Registrar. Original deed returned after registration.
Step 5 – PAN, TAN & Bank Account:
- Apply for PAN and TAN for the trust.
- Open a bank account to manage trust finances.
- Comply with Income Tax Act provisions.
Why Choose Nitiminds?
- 24×7 Support: Assistance whenever you need it.
- Experienced Team: 50+ professionals, 10,000+ satisfied customers.
- Fast Delivery: Complete registration efficiently and compliantly.
- Reliable: We follow all regulations, ensuring a smooth registration process.
Submit Documents Online
Easily upload your documents through our secure online system. Nitiminds Consultancy ensures a fast, paperless, and confidential process for your convenience.
Our Package
Frequently Asked Questions
Clarity turns business into confidence.
Who manages the trust?
A trust is managed by a trustee. A trust involves three main parties:
- Settlor: The person who creates the trust and transfers assets.
- Trustee: The person or body responsible for managing the trust assets as per the trust deed.
- Beneficiary: The person(s) or entity for whose benefit the trust is created.
The trustee controls and manages the property for the benefit of the beneficiary while following the terms laid out by the settlor in the trust deed
How many types of trusts are there?
There are two main types of trusts in India:
- Public Trust: Created for the welfare of the general public (charitable, religious, educational purposes).
- Private Trust: Created for specific individuals or families, with clearly defined beneficiaries.
How many trustees are required to form a trust?
- Minimum two trustees are required to form a trust.
- There is no maximum limit; more trustees can be added as per the trust deed.
Can the trustee also be a beneficiary?
- Yes, but carefully: A trustee can also be a beneficiary in some private trusts.
- In public/charitable trusts, trustees are generally not allowed to benefit financially from the trust to maintain the charitable purpose and legal compliance.
Who is the owner of the trust?
- Legally, the trust property belongs to the trust itself, not the trustee or settlor.
- The trustee holds and manages the property on behalf of the beneficiaries.
How does the trust pay taxes on its funds?
- A registered trust (public or charitable) must obtain a PAN and file income tax returns.
- Income used for charitable purposes may be exempt under Section 11 of the Income Tax Act.
- Any income not used for charitable purposes is taxable.
- Donors may also get tax benefits if the trust has 12A and 80G registrations.
