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Trust Registration In India

Trust Registration is regulated by the Trust Act, 1882. The Trust Act, 1882 defines a Trust as “an obligation annexed to the ownership of property and arising out of a belief reposed in and accepted by the owner or declared and accepted by him, for the benefit of another or of another and the owner. In simple words an arrangement in which someone’s property or money is legally held or managed by someone else or by an organization (such as a bank) for usually a set period In India, most of the Trusts are registered as public charitable trusts in a form of a not-for-profit entity.


    Trust Registration

    A Trust can be formulated by any person in India who is competent to contract, having in his/her power any property with is transferable. Trust Registration

    Parties Involved in Trust

    1. The person formulating the Trust is called the Settlor
    2. The person to whom the property is transferred on trust is called a Trustee.
    3. The person for whose benefit the property is transferred is called the beneficiary.
    1. If the property to be transferred to the Trust is immovable, then the Trust must be created by the enactment of a Trust Deed that is duly registered. In case the Trust is created by the transfer of movable property, then the Trust can be created by the property owner himself orally or in writing declaring that he would hold the property, not as owner, but as a Trustee for the benefit of some other person.


    The Trust Deed must be executed on Stamp Paper of suitable value and singed by the settlor and two witnesses. Once the Trust Deed is executed, it can be registered with the Local Registrar. The Registrar would then register the Trust, retain a photocopy of the Trust deed and return the original registered Trust Deed to the settlor.


    Types of Trust

    Public Trust

    A Public Trust is one whose beneficiaries include the common public at large. Furthermore, Public Trust in India can be further subdivided into Public Religious Trust and Public Charitable Trust.

    Private Trust

    In India, a Private Trust is one whose beneficiaries include individuals or families.

    Documents for Trust Registration

    Below-mentioned documents are required for Trust Registration-

    1. Proof of Identity for Trustor & Trustee-Aadhaar Card, Voter ID, Passport, Driving License
    2. Address Proof of Registered Office- Copy of Certificate of Property/Utility Bills (Telephone, Water, Electricity Bill)
    3. In the case of rented property, NOC from the Landlord is required.
    4. the objective of the Trust Deed.
    5. Particulars of the Trustee and settlor (Self-attested copy Id and Address Proof along with the information related to occupation).
    6. Trust Deed on Proper Stamp Value.
    7. Photographs of Trustee and settlor.
    8. PAN Card of Trustee and settlor.

    In addition to that, the Trust deed contains the following information:-

    1. Name of the Trust
    2. Place of office of the Trust
    3. Objects of the Trust
    4. Number of Trustees
    5. Term of the Trustees
    6. Trust Management
    7. Appointment or Resignation or Termination of Trustees
    8. Power, Function and Duties of the Trustees
    9. Application of Trust Property
    10. Other important matters

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