Trust Registration – All you need to know about it

Last Updated at: January 18, 2020
1161
Trust Registration - All you need to know about it

Trusts play a key role in the Indian context as an important driver of intergovernmental negotiations. Such trusts undertake charitable activities related to public welfare such as providing medical help, education, and other basic needs for the underprivileged and so on.

What is a trust?

The Indian Trust Act of 1882 defines a ‘Trust’ to be an arrangement where the trustor the owner transfers property to somebody else (the trustee) to benefit a third person, called the beneficiary. Trusts are classified into two branches-

  • Public trust– In such a trust, the public is the prime beneficiary. These trusts can be classified further into Public Religious Trusts and Public Charitable Trusts.
  • Private Trust– The beneficiaries of such trust mainly include individuals or families.

Trust registration

In today’s world, social and rural entrepreneurship is on a rise and socio-economic disruptions are getting more attention. As a result, the entire NGO ecosystem prevailing in India is heading for a complete overhaul. Trusts are being seen as important catalysts to push sustainable development in India and various governmental and legal benefits are being provided to registered trusts. Therefore, you must register your trust so that you can unlock these benefits. Here, we will mention a few things you must know about the trust registration process in India. You can do your Trust registration online as well.

Before registering your trust, you should be clear about the following pointers-

  • The name of the trust– The name of your trust should comply with the provisions mentioned in the Emblems and Names Act of 1950
  • The objective of the trust– Whether religious or charitable
  • Formation of the trust– A minimum of two trustees are required to form a trust. No restriction is imposed on the maximum number of the trustees. However, the trustees should be over 18 years of age with valid ID proofs.
  • Formulate a Trust Deed or a Memorandum of Association (MOA) for your trust- The MOA defines the relationship between the Trustor and the Trustees and underlines the objectives for which the trust forms. The MOA should contain the names, occupations, addresses, and signatures of all the members.

On the other hand, the trust deed includes the rules and regulations of the trust and it is very much the legal evidence of the existence of the trust. This document also mentions information about the changes made to the laws and additions/deletions of the trustees, if any. Two witnesses must be present at the time of signing of the Deed.

register your trust

A trust deed should also contain the below-mentioned information –
  • Specific clauses related to the Trustees and the Settlers, Object and beneficiaries, General Body Members and the Registered Office
  • Details of the bank account associated with your trust
  • Date of execution of the Deed
  • Organize several meetings every year.

Documents required for Trust Registration

  • Trust Deed on stamp paper– The value of the stamp paper is a certain percentage of the total property value belonging to the trust. The percentage differs from one state to another.
  • Proof of Identity– Self-attested copies of ID proofs of the Trustor and the Trustees ( passport/voter ID/Aadhar Card/Driving license )
  • Address Proof of Registered office– Property Registration certificate or utility bill copy ( water bill/electricity bill)
  • No Objection Certificate (NOC) from the property owner – For rented property
  • Passport-sized photographs of the Trustor, the Trustees and the witnesses present while signing of the Deed.

Documents-required-for-Trust-Registration

Additionally, you need to pay Rs 1100 at the time of registration. Out of this, Rs 1000 is the charge of keeping your Trust Deed copy with the sub-registrar and Rs 100 is the official registration fee. After submission of the papers, you may collect the certified copy of your Trust Deed from the Office of the Registrar within a week. You can submit the same, along with the attested photocopies, to the local registrar. The registrar will then retain the copies and will return the registered Trust Deed (in original) to you. After a minimum of seven working days, subject to completion of formalities, the formal trust registration certificate would be handed over to you. Please note that there may be an undeclared visit by authorized Government officials within these 7 days to verify your office address.

The footnote:

The process of Trust Registration in India is a fairly easy one and requires less documentation as compared to other countries. Trust registration has become a useful channel when it comes to succession and property planning.

Frequently Asked Questions

Can geographical names be used as trademarks?

The geographical names cannot be used just like that. But the name can be coined with another word to create a new brand. For instance, you can’t trademark ‘Chennai’ since it is a city’s name whereas you can trademark ‘Chennai Times’ as a brand.

How long is a trademark valid in India?
2+

Trust Registration – All you need to know about it

1161

Trusts play a key role in the Indian context as an important driver of intergovernmental negotiations. Such trusts undertake charitable activities related to public welfare such as providing medical help, education, and other basic needs for the underprivileged and so on.

What is a trust?

The Indian Trust Act of 1882 defines a ‘Trust’ to be an arrangement where the trustor the owner transfers property to somebody else (the trustee) to benefit a third person, called the beneficiary. Trusts are classified into two branches-

  • Public trust– In such a trust, the public is the prime beneficiary. These trusts can be classified further into Public Religious Trusts and Public Charitable Trusts.
  • Private Trust– The beneficiaries of such trust mainly include individuals or families.

Trust registration

In today’s world, social and rural entrepreneurship is on a rise and socio-economic disruptions are getting more attention. As a result, the entire NGO ecosystem prevailing in India is heading for a complete overhaul. Trusts are being seen as important catalysts to push sustainable development in India and various governmental and legal benefits are being provided to registered trusts. Therefore, you must register your trust so that you can unlock these benefits. Here, we will mention a few things you must know about the trust registration process in India. You can do your Trust registration online as well.

Before registering your trust, you should be clear about the following pointers-

  • The name of the trust– The name of your trust should comply with the provisions mentioned in the Emblems and Names Act of 1950
  • The objective of the trust– Whether religious or charitable
  • Formation of the trust– A minimum of two trustees are required to form a trust. No restriction is imposed on the maximum number of the trustees. However, the trustees should be over 18 years of age with valid ID proofs.
  • Formulate a Trust Deed or a Memorandum of Association (MOA) for your trust- The MOA defines the relationship between the Trustor and the Trustees and underlines the objectives for which the trust forms. The MOA should contain the names, occupations, addresses, and signatures of all the members.

On the other hand, the trust deed includes the rules and regulations of the trust and it is very much the legal evidence of the existence of the trust. This document also mentions information about the changes made to the laws and additions/deletions of the trustees, if any. Two witnesses must be present at the time of signing of the Deed.

register your trust

A trust deed should also contain the below-mentioned information –
  • Specific clauses related to the Trustees and the Settlers, Object and beneficiaries, General Body Members and the Registered Office
  • Details of the bank account associated with your trust
  • Date of execution of the Deed
  • Organize several meetings every year.

Documents required for Trust Registration

  • Trust Deed on stamp paper– The value of the stamp paper is a certain percentage of the total property value belonging to the trust. The percentage differs from one state to another.
  • Proof of Identity– Self-attested copies of ID proofs of the Trustor and the Trustees ( passport/voter ID/Aadhar Card/Driving license )
  • Address Proof of Registered office– Property Registration certificate or utility bill copy ( water bill/electricity bill)
  • No Objection Certificate (NOC) from the property owner – For rented property
  • Passport-sized photographs of the Trustor, the Trustees and the witnesses present while signing of the Deed.

Documents-required-for-Trust-Registration

Additionally, you need to pay Rs 1100 at the time of registration. Out of this, Rs 1000 is the charge of keeping your Trust Deed copy with the sub-registrar and Rs 100 is the official registration fee. After submission of the papers, you may collect the certified copy of your Trust Deed from the Office of the Registrar within a week. You can submit the same, along with the attested photocopies, to the local registrar. The registrar will then retain the copies and will return the registered Trust Deed (in original) to you. After a minimum of seven working days, subject to completion of formalities, the formal trust registration certificate would be handed over to you. Please note that there may be an undeclared visit by authorized Government officials within these 7 days to verify your office address.

The footnote:

The process of Trust Registration in India is a fairly easy one and requires less documentation as compared to other countries. Trust registration has become a useful channel when it comes to succession and property planning.

Frequently Asked Questions

Can geographical names be used as trademarks?

The geographical names cannot be used just like that. But the name can be coined with another word to create a new brand. For instance, you can’t trademark ‘Chennai’ since it is a city’s name whereas you can trademark ‘Chennai Times’ as a brand.

How long is a trademark valid in India?
2+

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