We deliver Trust Registration in Patna Bihar & Trust Registration in Ranchi Jharkhand. Trusts are organisation registered under Indian Trust Act. Trust can be Private Trust and Public Trust. Public Trusts are also known as Charitable Trusts or NGO.
- The first step to register a trust starts with the drafting of a trust deed. The trust deed is to be executed on appropriate non-judicial stamp paper, the rate of stamp duty differs from state to state.DefinitionsA” Trust” is an obligation annexed to the ownership of property, & arising our of a confidence reposed in and accepted by the owner, or declared and accepted by him, for the benefit of another, or of another and the owner.
- Beneficiaries – The person for whose benefit the confidence is accepted is called the “Beneficiaries”
- Trust property – The subject matter of trust is called “Trust property” or “Trust Money”.
- Instrument of Trust – The instrument, if any, by which the trust is declared is called the “Instrument of Trust”..
The next step is to seek an appointment with the sub-registrar office having jurisdiction based on the registered office of the trust, and the government registration fee is to be paid after that. On the appointed date the trust deed is presented before the sub-registrar where all trustees need to be present along with two witnesses.
The registration process is then undertaken at by the office of the sub-registrar, and the registered deed can be collected after a week time. The purpose for which a public trust can be created is for the benefit of general public, and the same must be clearly prescribed in the trust deed, as it guides its functioning in the course of time.
Generally a public trust is created for setting up a school, colleges, other educational initiatives, hospital, old age homes, orphanage, for promotion of child health and their empowerment, welfare of weaker section of society, and for fulfillment of Corporate Social Responsibilities (CSR) by companies under section 135 of the Companies Act, 2013
Private Trust Registration
- The existence of the author/settlor of the Trust or someone at whose instance the Trust comes into existence and the settlor to make an unequivocal declaration which is binding on him.
- There must be a transfer of the ownership by the author of the trust in favour of the trustee, where the beneficiary gains.
- A Trust property.
- The objects of the Trust must be precise and clearly specified.
- The beneficiary of the Trust may be a particular person or persons.
Public Trust Registration
- A declaration of Trust which is binding on settlor.
- Setting apart definite property and the settlor relinquishing himself of the ownership thereof.
- A statement of the objects for which the property is hereon held.
- The settlor or the author of the Trust, and the Trustees must be competent to contract.
- After formation of the Trust, the Trust shall not be revoked, barring a few exemptions where the Trust contract contains any clause.
FAQs on Trust Registration
1.What is Trust Deed?
A Trust is an obligation attached to the ownership of the property out of confidence reposed in and accepted by the owner or declared and accepted by him for the benefit of another (Section 3 of Indian Trust Act).Although every person capable of holding property can be a trustee but not the Government of India. A Government servant cannot be the trustee of a mosque, temple or other religious institution.
2.What is PRIVATE VS PUBLIC TRUST?
Indian Trusts Act, 1882 regulates and administers the private trusts in India, whereas the public trusts direct the functioning of public trusts except in the state of Maharashtra and Gujarat where public trusts are governed by Bombay Public Trusts Act, 1950.
3.How many members required to form a trust?
There is no upper limit for the trustees, but minimum two trustees are always required for registration. The trust deed should have provision concerning the management of the trust along with the procedure of appointing or removing the members.
lic limited company.Author of Trust – The person who reposes or declares the confidence is called “the author of the trust”Trustee– The person who accepts the confidence is called the “trustee”.