What is Trust Registration in India?

Trust Registration Online

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 a just a legal definition of Trust in India. Let us not understand what Trust is within an Indian context.

A Welfare Trust Registration, or simply, a trust registration is an entity that exists and is governed with registration under 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 being the beneficiary and other being the benefactor, the benefactor holds the power to transfer his own assets to the beneficiary as per the clause of a registered trust in India.

Within the legal context of trust deed registration, the benefactor is known as the Trustor and the beneficiary 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 getting Trust registration India

1.    Involving yourself with various 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 by-laws the reasons behind the registration of a trust in India and you will be able to help a lot of people.

2.    Helping the children: 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 that your trustee – your children – can have a secure financial future.

3.    Getting Tax exemptions: Getting Online trust registration, whether it is 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, by getting registration of charitable trust under income tax act. with registration under section 12An of income tax act and registration under section 12aa, public trusts in India can enjoy exemptions in their taxes. Furthermore, under special provisions, setting up a trust online and getting section 12AB registration is also beneficial as far as taxation is concerned.

4.    Helping aggrieved individuals: A trust registered under section 12A not only help with Trust online registration, it also helps the consolidation of a society whose sole purpose is to help the most number of people.

5.    Easy to incorporate in Delhi: The trust registration process is 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.

6.    Family wealth is covered under this registration: Registration of a private trust is considered utmost importance for the those who wish to protect their personal assets in India.

7.    Establishing Temples: If you are a devout individual, registration of religious trust is something you can get into. You can tap into temple trust registration procedure and establish a society that can consolidate a temple in the future.

What are the different types of Trust Registration in India?

Trust registrations are comprised into two of the following categories:

1. Public Trust Formation: A 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:
1. To setup a school or educational institute in order to provide education to the children
2. To setup an hospital or nursing home for the providing medical facilities to the poor
3. To take care of the old aged, senior citizens, widows, children and the handicapped.
4. To promote child and women health and women empowerment. 
5. To provide social welfare to the society
6. To provide spiritual and other forms of cultural activities
7. To provide training for the people belonging to backward or poor classes.
8. To setup temples and other religious activities.
9. To setup associations to protect the environment.
10. To provide food, shelter, drinking water and other basic amenities to the poor.
11. To get the gist, the goal of public registration of trust in India is to provide a charitable trust.

2. Private trust Formation: In this type of trust, the beneficiaries are individuals or families. The objects of this type of trust are as follows:
1. To provide benefits and welfare to a particular member of the family.
2. To manage and preserve a particular property.
3. 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 to be the most versatile in India.

The registration of s trust involves the trust deed registration. A Trust deed is a document in which the aims, objects and the modes of management of the trust 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 are going to make sure that your trust gets registered at 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 of Trust Registration in India:

1.    Civil and Criminal Penalties that you might face: 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.

2.    Application for Tax Deduction Account Number: It is imperative for a Trust to obtain the Tax Deduction Account Number. Not doing so is considered a criminal offence as per the Section 27BB of the Indian Trust Act, 1882.

3.    Not furnishing the 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 tax benefits. It means that  the Trust is required to furnish the tax returns on time. Not complying to 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 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
• The purpose of your Trust should not contravene with provisions of the Indian Trust Act, 1882.
• The application you must file should follow the precise trust registration format.
• You must agree to never contravene the rules and regulations of your by laws.
• You must specify the beneficiaries in the documents you submit for trust registration application in India. For instance, when you submit a 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

1. The details of the trustee:
1. Name
2. Occupation
3. Address
4. Age
5. Designation
6. Contact Information
7. Photographs
2. Address proof of the trustee:

1. Voter ID
2. Driving License
3. Passport
2. Electricity Bill or a House tax receipt in order to show that you are the in fact the owner of the property.
3. NOC from the landlord in case the property is rented.
4. Two witnesses are required at the time of registration.
5. The settler should also be present at the time of registration.

In 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 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 the same as 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 good name for your Trust: Your first task is to give a suitable 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

Creating the trust deed: Formulate the by-laws of your Trust and put them inside the trust deed.

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

File the online application: To form a trust online, an online application has to be filed. Go to the official website of Trust registration in your state and start filling out the application form .

Submit the online application for trust registration to the appropriate authority: Submit the application form with the requisite documents.

Obtain Trust Registration certificate after analysis: It is not only the documents and registration that the registrar of society in 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 you several questions about what is trust registration certificate and its rules and regulations, we will provide you the following services:

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

We are the leading Trust registration consultant in India with the base in Delhi. We can thoroughly assist you in the matter of trust registration in minimum time.

Frequently Asked Questions- 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.