Trust Registration In Bihar

Trust Registration In Bihar - An Overview

In Bihar, the process of trust registration follows guidelines set by the Indian Trusts Act, 1882. A trust is a legal arrangement where a trustee holds and manages assets for the benefit of beneficiaries. To register a trust in Bihar, interested parties need to prepare a trust deed that outlines the objectives, names of trustees and beneficiaries, and the properties/assets involved. The deed should be signed by the settlor (the person creating the trust) and the trustees. Once the trust deed is drafted, it needs to be submitted to the local Sub-Registrar's Office, along with the necessary documents and fees. The registration process provides legal recognition to the trust and its objectives, facilitating transparent and legitimate operations within the state.

Bihar encourages and supports various charitable and philanthropic activities through trust registration. By formalising trusts, the state aims to promote the welfare of its residents and facilitate initiatives in education, healthcare, social services, and more. It is essential to adhere to the legal procedures and requirements to ensure that trusts operate with integrity, transparency, and effectiveness in serving the community and achieving their stated goals.

Benefits of Trust Registration in Bihar

• Legal Recognition

  By registering a trust in Bihar, the trust gains legal recognition as a separate legal entity. It becomes a distinct organisation with its own legal rights and obligations. It enhances its credibility and authenticity.

• Trustee Protection

  Registration provides protection to the trustees by limiting their personal liability. As a registered entity, the trust is responsible for its debts and obligations. This minimising the personal liability of individual trustees.

• Tax Exemptions

  Registered trusts in Bihar are eligible for various tax exemptions and benefits. One can enjoy tax deductions for donations received for charitable purposes. Additionally, income earned by the trust through charity may be exempted from tax.

• Perpetual Existence

  A registered trust enjoys perpetual existence. It can continue its activities even in the event of the death or resignation of its trustees. The trust's activities and objectives can be carried forward seamlessly. It ensures the continuity of its social initiatives.

Documents Required for Trust Registration in Bihar

The following documents are required for Trust registration in Bihar:

• Trust deed
• Proof of identity and address for trustee
• Proof of address of the trust
• Bank account details of the trust
• A copy of the PAN card of the trust

Eligibility Criteria for Trust Registration in Bihar

• Seeking a competent and willing individual or entity for property transfer
• Minimum requirement of two individuals or corporate entities
• Activities must be lawful
• The trust should function within charitable, religious, educational, or social welfare domains
• Operation should be non-profit, utilising income and property solely for stated objectives
• Execution of a trust deed to define objectives, rules, and regulations
• Necessary to obtain relevant authority, submit documents, and pay fees
• Adherence to rules, regulations, and reporting obligations is expected.

Checklist for Trust Registration in Bihar

• Identify a competent settlor willing to transfer property
• Appoint a minimum of two trustees, individuals or corporate entities
• Determine lawful objectives falling under charitable, religious, educational, or social welfare activities
• Prepare a trust deed clearly defining objectives, rules, and regulations
• Execute the trust deed with proper signatures and witnesses
• Prepare the application for trust registration with required details
• Gather necessary documents, including identity proofs, address proofs, and property details
• Arrange for the payment of the registration fee
• Submit the application and supporting documents to the Registrar of Trusts
• Ensure compliance with all applicable rules and regulations.

Process for Trust Registration in Bihar

The process of trust registration in Bihar is as follows:

• Step 1: Consultation and Document Collection

  Get expert consultation to understand your requirements. Avail help in choosing a unique trust name and the details of the trust you want to register. Submit the required documents for registration.

• Step 2: Trust Deed Drafting

  Vakilsearch's legal experts would draft the trust deed according to your specifications. We ensure it complies with the Indian Trusts Act and relevant state laws. We will tailor the trust deed to reflect your intentions and objectives.

• Step 3: Submit the Application

  With the trust deed and documents in hand, our team will file for registration. We make sure that all the information is accurate

• Step 4: Follow-Up and Verification

  Our team will address any queries or requirements arising during the process.

• Step 5: Registration and Documentation

  Post approval you will get a registration certificate from the Sub-Registrar's office. On request, we might also assist you in obtaining a PAN and open a bank account for the trust

Why Vakilsearch?

Opting for Vakilsearch for trust registration in Bihar brings unique benefits. Our team has a deep understanding of Bihar's regulatory environment. We ensure that trust registration adheres to all the legal requirements. Our team's local expertise and knowledge of Bihar's administrative processes help expedite documentation and approvals. By choosing Vakilsearch, you gain a partner who is well-versed in Bihar's legal intricacies, making the trust registration journey in Bihar efficient, compliant, and successful.