What is the minimum number of trustees required for a Trust?
A minimum of two trustees is required to register a Trust. However, there is no upper limit on the number of trustees.
How long does the Trust registration process take?
The Trust registration process typically takes 7 to 10 working days, provided all required documents are in order and submitted correctly.
What do you mean by a Trust Deed?
A Trust Deed is a legal document that serves as the foundation of a Trust. It outlines the objectives, governance structure, roles, and responsibilities of the trustees. The Trust Deed must be executed on stamp paper of appropriate value and registered with the local Registrar.
How is a Trust formed?
The process of forming a Trust involves:
- Drafting the Trust Deed, which includes the name, objectives, and details of the trustees and beneficiaries.
- Execution of the Trust Deed on stamp paper with signatures of the settlor, trustees, and witnesses.
- Submitting the executed deed to the local Registrar for registration.
- Optionally, applying for 12A and 80G certifications for tax exemptions (in the case of Public Trusts).
What are the different types of Trusts?
Trusts are broadly classified into:
- Private Trusts: Created for the benefit of specific individuals or a defined group of beneficiaries.
- Public Trusts: Established for the welfare of the general public, often for charitable, religious, or educational purposes.
Can you help in choosing the right legal entity for my requirements?
Yes, we can! Based on your objectives and specific requirements, we assist in identifying the most suitable legal structure, whether it’s a private trust, public trust, or another legal entity, to ensure alignment with your goals and compliance with applicable laws.
What is the governing law for Trust registration in India?
Trusts in India are governed by the Indian Trusts Act, 1882 for private trusts and by relevant state laws for public trusts.
Who can create a Trust in India?
Any individual who is competent to contract (above 18 years, of sound mind) or an organization can create a Trust.
Is registration of a Trust mandatory?
Registration of a Public Trust is mandatory under state laws for claiming tax exemptions and legal recognition. For Private Trusts, registration is necessary if immovable property is involved.
What are the key components of a Trust Deed?
- Name and address of the Trust
- Objectives of the Trust
- Details of the Trustees and Settlors
- Beneficiaries
- Mode of management and operation of the Trust
- Rules for amendment or dissolution
What documents are required for Trust registration?
- Trust Deed
- ID and address proofs of the Settlor and Trustees
- Proof of address of the Trust’s registered office
- Passport-sized photographs
Where can a Trust be registered?
A Trust can be registered with the local Sub-Registrar Office in the jurisdiction where the Trust’s registered office is located.
What are the fees for Trust registration?
The registration fee varies depending on the state and the value of the Trust’s property.
Can a Trust be formed without a Trust Deed?
No, a Trust Deed is essential for the registration of a Trust.
What is the role of a Trustee?
A Trustee manages the Trust’s assets and ensures the Trust’s objectives are fulfilled as per the Trust Deed.
Can a Trust own property in India?
Yes, a registered Trust can own and manage property in its name.
What are the benefits of registering a Trust?
Legal recognition
Tax benefits
Credibility and trust among stakeholders
Is PAN mandatory for Trust registration?
Yes, obtaining a Permanent Account Number (PAN) is mandatory for a registered Trust.
What tax benefits are available for registered Trusts?
Public Charitable Trusts can avail of tax exemptions under Sections 11, 12, and 80G of the Income Tax Act, 1961.
Can a registered Trust be dissolved?
Yes, a Trust can be dissolved as per the provisions laid out in its Trust Deed or by court order.
Can a Trust operate outside India?
Yes, with the appropriate permissions and Foreign Contribution Regulation Act (FCRA) compliance, a Trust can operate internationally.