Trust Registration
For charitable and religious purpose
Private and Public Trust
Simple and Secure Online Process
Dedicated Professional
Get your work done in 10-15 days
Introduction of Trust Registration
Trust Registration is governed by the Indian Trust Act, 1882 where the author (owner) assigns the rights of the property to a trustee so that the beneficiary i.e. the third person can take benefit out of it. The trust is carried out by way of an instrument called trust deed which is formed on a non-judicial stamp paper as per the stamp rates of the different states.
Trust Deed is the core document which defines the reason for formation of trust, details of the author, trustee and the beneficiary. It lays down all the working and functioning of the trust until its closure. The trust deed is registered with the sub-registrar of the concerned jurisdiction.
Sunil Sharma & Associates will provide you all the necessary services and legal advice related to Trust registration. You may get in touch with our team on +91 90797 59095 or email cssunil93@gmail.com for all charitable trust related compliance.
Advantages of Trust Registration
Litigation
Every Trust has its legal entity separate from its members it is capable of filing suits against any person or any member. The registered trust can file a suit anywhere in India and in any state even if it is not registered in that particular state
Legal status
Registration of trust gives it a legal status and that is very important because of various reasons like: for opening the bank accounts, Obtaining registrations and approvals under Income Tax Act, legally vesting properties.
Tax Benefits
The trust can take the tax benefit after applying for the 12AA/80G Certificate. Both the trust and the investor get tax exemptions.
Parties under Trust
- Trustee: Trustee is a person who accepts the confidence for the creation of the trust
- Author/Trustor: Trustor is a person who wants to transfer its property and reposes confidence on another for the creation of the trust.
- Beneficiary: Beneficiary is a person who will be benefited from the trust in the near future.
Types of Trust
- Private Trust : Private trust is for a closed group. In other words, the beneficiaries can be identified. For example: A trust created for the relatives and friends of the author.
- Public Trust : It is a trust formed for public, religious or charitable purpose or both and includes a temple, or any religious or charitable institution and formed either for a religious or charitable purpose or for both.
Documents Required for Trust Registration
Identity Proof
Self-attested copies of Identity Proof (Trustor, Trustee, Beneficiary)
PAN card
PAN Card of Trustor, Trustee, Beneficiary
Photograph
Photograph of Trustor, Trustee, Beneficiary
Address proof
Address Proof of Registered Office
Process of Registration of Society
12A and 80G Certificates
Income Tax Department issues 12A certificate to the trusts or NGOs that are involved in social welfare. Such certificate is issued for a period of 5 years and can be renewed after making an application and is not liable to pay Income tax for the entire lifetime on its surplus income. Additionally, an NGO can also apply for 80G certificate. This certification provides the donor benefit under Income Tax Act as deduction.
Comparison between Trust, Societies and Section 8 Company
| S. No. | Basis | Section-8 | Trust | Society |
| 1. | Governed by | Companies Act, 2013 | Indian Trust Act, 1882 | Societies Registration Act, 1860 |
| 2. | Registration Document | The charter documents are MOA and Articles of Association | The main document is the Trust Deed | The Primary instrument for Registration of society its Memorandum of Society. |
| 3. | Minimum Requirement | Section-8 Company requires at least two people. | At least two trustees are required. | At least seven members are required to form an society. |
| 4. | Revocable/Irrevocable | It can be dissolved in accordance with the provisions of the Companies Act, 2013 and rules made there under | Public Trust are generally irrevocable | Society can be dissolved which shall be approved by at least 3/4 of the Members of the society. |
| 5. | Control | It is managed by the Board of Directors and resolutions are passed in accordance with the Companies Act, 2013 | Single man may control and prevail in a trust. | Decisions are democratically taken in societies |
| 6. | Area of operation | It can operate all over India | It can operate all over India | It can operate in the specific state only. |
| 7. | Bank Account Operations | Here, a person can be authorized to operate a Bank Account. | In trust it is controlled by one person mostly trustee | In case of society Bank operations are operated generally by the President and the treasurer. |
| 8. | Annual Compliance | Annual Accounts and return of Company are filed with ROC. | There is no requirement of annual filing, but the data has to be provided to the concerned department as per prescribed formats. | Societies are required to file annually with the Registrar of societies, a list of containing name. address and occupation of the managing committee members. |
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