What is Trust Registration in India?

What is a Trust?

A Trust refers to an arrangement in which a property is handed over to or vested in a person to be used and disposed off for the benefit of another person. But that is just a legal definition of Trust in India. Let us not understand what Trust is within an Indian context.

What is Trust Registration?

A Welfare Trust Registration, or simply, a Trust Registration, is an entity that exists and is governed with registration under the Indian Trust Act, 1882. mistakenly known as the Trust Registration Act, 1882). A registered trust is referred to as a legal arrangement within two parties. One party is the beneficiary, and the other is the benefactor. The benefactor holds the power to transfer his assets to the beneficiary as per the contract of a registered trust in India.

Within the legal context of trust deed registration, the benefactor is known as the Trustor, and the beneficiary is known as the Trustee. But why does one opt for establishing a Trust? Is it only to earn the benefits that come with Trust Registration under the Income Tax Act? The answer is both yes and no.

Benefits of Trust Registration in India

Establishment of Charitable Undertakings

Starting a charitable trust in Delhi by getting the registration of charitable Trust in India will have to start various charitable endeavours. You can specify in the bylaws the reasons behind the registration of a trust in India, and you will be able to help a lot of people.

Children Aid

If you want a secure future for your children, private trust registration in India is something you can work towards. Unlike a public charitable trust registration, it will allow you to become a trustor and carefully manage your assets so your Trustee – your children – can have a secure financial future.

Tax Exemptions

Getting Online trust registration, whether it is a public trust registration or a new trust registration online that is private, leads to several tax exemptions. A Trust, in most cases, is considered akin to an NGO. Therefore, public trusts in India can enjoy tax exemptions by registering as Charitable Trusts under the Income Tax Act with registration under section 12A of the Income Tax Act and registration under section 12AA. Furthermore, under special provisions, setting up a trust online and getting Section 12AB registration is also beneficial as far as taxation is concerned.

Helping Aggrieved Individuals

A Trust registered under Section 12A helps with Trust Online Registration but also helps the consolidation of a society whose sole purpose is to help the most people.

Easy Incorporation

The trust registration process in Delhi doesn't have any hindrances. The procedure is easy to follow and easier to implement. One merely needs to fill out the trust registration form via the appropriate trust registration format, Go to the Trust registration office in Delhi, and get the registration certificate on time.

Familial Wealth Coverage

Registration of a private Trust is considered of utmost importance for those who wish to protect their personal assets in India.

Establishing Temples

If you are a devout individual, registration of religious Trust is something you can get into. You can tap into the Temple Trust Registration procedure and establish a society that can consolidate a temple in the future.

Types of Trust Registration in India

Trust Registrations are comprised of two of the following categories:

Public Trust Formation

Public Trust is referred to as the Non-Profit Charitable Organization or a Non-Governmental Organization. The objectives of a public trust are as follows:

To set up a school or educational institute to provide education to the children
To set up a hospital or nursing home the providing medical facilities to the poor
To take care of the old aged, senior citizens, widows, children and the disabled.
To promote child and women's health and women's empowerment.
To provide social welfare to the society
To provide spiritual and other forms of cultural activities
To provide training for the people belonging to backward or poor classes.
To set up temples and other religious activities.
To set up associations to protect the environment.
To provide the poor with food, shelter, drinking water and other basic amenities
Ultimately, Public Registration of Trust in India aims to provide charitable services.

Private Trust Formation

In this type of Trust, the beneficiaries are individuals or families. The objects of this type of Trust are as follows:

To provide benefits and welfare to a particular member of the family
To manage and preserve a particular property

Public-cum-Private Trust

A Public-cum-Private Trust is an entity that serves two purposes. The income they generate can be used for public or for private reasons. A trust registered of this type is considered the most versatile in India.

Trust Deed

The registration of a Trust involves the Trust Deed Registration. A Trust Deed is a document in which the Trust's aims, objects and management modes are defined.

If you are looking for Trust registration in Delhi or trust deed registration in Delhi, then you should get in touch with Registrationwala. We can provide you with all the assistance pertaining to the registration of this entity. Our professionals will ensure that your Trust gets registered at the proper time.

However, just incorporating the Trust is not enough. Once you obtain the trust deed registration certificate, You have to take care of the compliances. If you don't, you will face a lot of penalties that you cannot escape from:

Penalties for running an unregistered Trust in India

Civil and Criminal Penalties

Not following the rules mentioned in the trust deed is considered a contravention of the provisions of the Trust Registration Act. And thus, you will become liable for civil and criminal penalties.

Default in acquiring Tax Deduction Account Number

A Trust must obtain the Tax Deduction Account Number. Not doing so is considered a criminal offence per Section 27BB of the Indian Trust Act, 1882.

Default in filing Income Tax Returns

Not every Trust is considered to be a Non-Profit Organization. Unless the Trust has the registration under Section 12A of the income tax act, it cannot avail of tax benefits. It means that the Trust is required to furnish the tax returns on time. Not complying with the rules will cause issues for your company.

Eligibility Criteria for Trust Registration in India

To obtain the registration certificate for a Trust, you need to keep in mind the following points:

Your Trust should follow the rules of the bylaws.
All the members mentioned in your Trust should have a clean record.
Your Trust's purpose should not contravene the Indian Trust Act, 1882.
The applicant must follow the precise trust registration format.
You must agree never to contravene the rules and regulations of your bylaws.
You must specify the beneficiaries in the documents you submit for the Trust Registration application in India. For instance, when you submit an application for family trust registration in India, you must be explicit about the Trustor and the Trustee.

Documents Required for Trust Registration in India

Following are the Private Trust Registration in India

Details of the Trustee

Name
Occupation
Address
Age
Designation
Contact Information
Photographs

Address Proof of the Trustee

Voter ID
Driving License
Passport

Proof of Office's Ownership

Electricity Bill
House Tax receipt
NOC from the landlord in case of rented property

Witnesses and Settlers

Two witnesses are required at the time of registration.
The settler should also be present at the time of registration.

In the case of a Charitable Trust Registration, the details shall remain the same. However, the difference will be in the case of the details specified when it comes to the Trustor.

Additional Note: The Trust registration documents will remain the same for each state. For instance, the documents required for trust registration in Delhi will be the same everywhere else.

Process of obtaining the Trust Registration in India

Here is the step-by-step process to register a Trust online in India:

Choose a unique name for the Trust

Your first task is to give a proper name to your Trust. The online registration of Trust is only possible if the name you choose for your Trust is reliable and as per the standards of the government of India.

To form a Trust, your name should not contravene the Emblems act.
The name should not violate the trademark act
The name you choose should be unique

Drafting the Trust Deed

Formulate the bylaws of your Trust and put them inside the trust deed.

Documentation

Gather the documents required for Trust Registration. Make sure all the documents are signed from the get-go.

Online Application filing

To form a trust online, the applicant must file an online application. Go to the official website of Trust Registration in your state and start filling out the application form.

Application Submission

Submit the online application for Trust Registration to the appropriate authority with the requisite documents.

Obtain the Trust Registration Certificate

It is not only the documents and registration that the society registrar assesses. It is also the purpose of your Trust. After the analysis, if the registrar deems you worthy, you will obtain the trust registration certificate.

How can we help you?

Registrationwala is a team of leading business professionals who are well-versed in the matters of Trust registration. In addition to answering several questions about what is Trust registration certificate and its rules and regulations, we will provide you with the following services:

Document furnishing
Application filing
Department follow up
Aid in the removal of errors in the application form

We are India's leading Trust registration consultant with a Delhi base. We can thoroughly assist you with trust registration in a minimum time.

FAQs About Trust Registration

Q1. Where to register a Trust?

A Trust can be registered either online via the official Trust Registration portal or offline with the appropriate authorities.

Q2. What is the process of getting trust registration in Delhi?

The process of trust registration in Delhi is as follows:

1) Choose a trust name

2) Choose a cause

3) Furnish the documents

4) Fill out the application form

5) Get the application assessed

6) Form a Trust online by getting the trust registration certificate

Q3. How to get trust registration certificate online?

You can obtain trust registration certificate online by following the online trust registration process.

Q4. How to make a Trust in India?

To make a Trust in India, you need to first:

1) Find a worthy cause

2) Choose a worthy name

3) And apply for Trust registration certificate

Q5. How to register an education Trust?

For education trust registration, the process is generic. However, in the education Trust deed forma in Delhi, you need to specify precisely the reason behind the incorporation.

Q6. How to form a Charitable Trust in India?

To open a charitable trust, you need to follow Charitable Trust registration process is as follows:

1) Choose a trust name

2) Choose a cause

3) Furnish a Charitable Trust deed with all the requisite information

4) Furnish the documents

5) Fill out the application form

6) Get the application assessed

7) Form a Trust online by getting the Charitable trust registration certificate

Q7. How to check Trust registration online?

To Check Trust registration number online, you need to visit the official website and enter the name of the trust.

Q8. How to form a private trust in India?

The procedure for forming a private trust in India is same as a formation of a private trust. However, the only difference will be the nature of the trustee.

Q9. What is the Temple Trust Registration procedure?

The process to obtain temple trust registration online is a simple one and is as follows:

1) Choose a trust name

2) Furnish a Trust deed with all the requisite information about the temple

3) Furnish the documents

4) Fill out the application form

5) Get the application assessed

6) Form a Trust online by getting the Charitable trust registration certificate

Q10. How to verify a trust registration number?

To verify the trust registration number, you can go to the official website or visit the appropriate authorities.

Q11. How to check trust registration online?

Visit the official website, and enter the name or number of the registered trust. Or, if you wish to check whether your trust is registered, enter the details of your registered firm.