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Trust Registration India

Register your company at just ₹3000 in Tirunelveli

(govt fees + tax extra)

Within 10 working days

A Trust is a legal arrangement where property or assets are entrusted to a group of individuals or an entity (trustees) to manage and utilize for the benefit of specific beneficiaries or the public at large. Trusts play a crucial role in advancing charitable, educational, religious, and other philanthropic objectives.

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Trust Registration with Targolegal

1
Step 1

Drafting the Trust Deed

2
Step 2

Execution of the Trust Deed

3
Step 3

Registration of the Trust MOA & AOA

4
Step 4

Tax Certifications (if applicable)

Types of Trusts

Trusts can be broadly classified into two categories:

  • Private Trusts: Created for the benefit of specific individuals or a defined group of people.
  • Public Trusts: Established for the benefit of the general public, often with charitable, religious, or social welfare objectives.

Key Features of a Trust

  • Settlor: The person who creates the trust and transfers property or assets to the trustees.
  • Trustees: Individuals or entities responsible for managing the trust property in accordance with the trust’s objectives.
  • Beneficiaries: The individuals or groups for whose benefit the trust is created.
  • Trust Deed: A formal legal document that defines the purpose, structure, and operational rules of the trust.
  • Steps in Trust Formation and Registration

    1. Drafting the Trust Deed:

  • Includes the name of the trust, its objectives, details of trustees, beneficiaries, and governance structure.
  • Specifies roles, responsibilities, and the scope of authority of trustees.
  • 2. Execution of the Trust Deed:

  • The Trust Deed must be prepared on appropriate stamp paper and signed by the settlor, trustees, and witnesses.
  • 3. Registration of the Trust:

  • The executed Trust Deed is submitted to the relevant local authority for registration, along with required documentation.
  • Once verified, the authority registers the trust and returns the registered Trust Deed.
  • 4. Tax Certifications (if applicable):

  • Public trusts may apply for tax exemptions under relevant provisions to enhance their operational capacity.
  • Key Considerations for Trust Registration

  • Minimum Number of Trustees: A trust typically requires a minimum of two trustees, though there is no upper limit.
  • Objectives: Clearly defining the purpose and scope of the trust in the Trust Deed is essential for operational clarity.
  • Tax Exemptions: Public trusts can apply for certifications to avail of tax benefits, enhancing their capacity to fulfill their objectives.
  • Compliance: Trusts must adhere to applicable laws and file necessary returns to maintain good standing.
  • Documents Required for Trust Registration

  • PAN card and government-issued identity proof of the settlor and trustees.
  • Address proof of the registered office of the trust (e.g., electricity bill, rent agreement, or ownership deed).
  • Passport-sized photographs of all parties involved.
  • Details of the trust’s objectives and the initial contribution, if any.
  • A draft of the Trust Deed with complete details.
  • Why Choose Us

      We provide end-to-end support for trust formation and registration, ensuring compliance with all applicable legal requirements. Our services include:

    • Drafting precise and customized Trust Deeds.​
    • Guiding through the registration process with local authorities.
    • Assisting with tax exemption certifications for public trusts.
    • Identifying the most suitable legal entity type based on your specific requirements, as trusts can sometimes be registered under different acts or structures.
    • Offering continued advisory services to ensure smooth trust operations.

    Whether you wish to create a private trust for family purposes or a public trust for societal benefit, we are here to provide expert guidance every step of the way.

    PRIVATE LIMITED COMPANY

    LIMITED LIABILITY PARTNERSHIP

    PARTNERSHIP

    ONE PERSON COMPANY (OPC)

    SOLE PROPRIETORSHIP

    Do I need a Registration?
    Yes, Ministry of Corporate Affairs registers Private limited company under the Companies Act, 2013
    Ministry of Corporate Affairs registers an LLP business under the Limited Liability Partnership Act, 2008.
    Yes, Register with Registration of Firms
    Yes, Ministry of Corporate Affairs registers One Person Companies under the Companies Act, 2013
    No legal requirement to do so.
    What type of business names can I keep?
    Firstly, submit a set of names to Registrar of Companies, wait for approval from Registrar. Best practice is that the names submitted must be inoffensive, legal and not similar to any registered LLPs or companies
    Firstly, submit a set of names to Registrar of Companies, wait for approval from Registrar. Best practice is that the names submitted must be inoffensive, legal and not similar to any registered LLPs or companies
    Firm can use any name that he likes, but avoiding names already trademarked is advisable
    Firstly, submit a set of names to Registrar of Companies, wait for approval from Registrar. Best practice is that the names submitted must be inoffensive, legal and not similar to any registered LLPs or companies
    Promoter can use any name that he likes, but avoiding names already trademarked is advisable
    How risky is it for me?
    Private Limited Company is a separate legal person in the eyes of law, registered under Companies Act 2013. So, the shareholders are not responsible for business liabilities.
    "LLP" is a separate legal person in the eyes of law, registered under LLP Act 2008. So, the partners are not responsible for business liabilities.
    Partners will stand liable for the liabilities of the business
    OPC is a separate legal person in the eyes of law. So, the share holder is not responsible for business liabilities.
    Promoter will stand liable for the liabilities of the business. Because the business is not considered as a separate legal person/entity
    To what extent is each member of the business liable?
    Liability is limited to his/her share capital contribution.
    Liable to the extent of their contribution (in money, in kind or in services extended) to the LLP
    Unlimited liability
    Liability is limited to his/her share capital contribution
    Unlimited liability.
    Tell me the minimum membership limit
    2 People
    2 People
    2 People
    1 Person
    1 Person
    Is foreign ownership allowed?
    Yes
    Yes
    No
    NA
    NA
    How much will I get taxed
    Profits get taxed at 25% plus cess and surcharge. Is applicable if profit exceeds 1 Cr
    Profits get taxed at 30% plus cess and surcharge. Is applicable if profit exceeds 1 Cr
    Profits get taxed at 30% plus cess and surcharge. Is applicable if profit exceeds 1 Cr
    Profits get taxed at 25% plus cess and surcharge. Is applicable if profit exceeds 1 Cr.
    Individual income tax slab of the proprietor is the basis of taxation.
    What are my annual tax filing norms?
    Every financial year Private Limited Company must file Annual Accounts and Annual Return with the Registrar of Companies. Plus, Income Tax must be filed separately.
    Every financial year Annual Statement of Accounts & Solvency and Annual Return with the Registrar Plus, Income Tax must be filed separately.
    Only Income Tax must be filed for the income of firm and partners.
    Every financial year OPC must file Annual Accounts and Annual Return with the Registrar of Companies. Plus, Income Tax must be filed separately
    Only Income Tax must be filed on the basis on proprietor's income.
    Is Annual Audit Required?
    Statutory audit is to be conducted irrespective of business transaction and turnover. Income tax audit is applicable if turnover exceeds 2 Crs
    Statutory audit is to be conducted if partners contribution exceeds 25 lakhs or turnover exceeds 40 lakhs. Income tax audit is applicable if turnover exceeds 2 Crs
    Only income tax audit is applicable if the turnover exceeds limit of 2 Cr
    Statutory audit is to be conducted irrespective of business transaction and turnover. Income tax audit is applicable if turnover exceeds 2 Crs.
    Only income tax audit is applicable if the turnover exceeds limit of 2 Cr.
    Can I convert my business into any other legal form?
    Yes, Private Limited Company can be converted into a Public Company or LLP. Even, Public Limited Company can be converted into a Private Limited Company.
    Yes, Private Limited Company can be converted into a Public Company or LLP. Even, Public Limited Company can be converted into a Private Limited Company.
    Yes, Partnership can be converted into a Private Limited Company or LLP
    OPC could be converted into any legal form. But, it depends on the number of promoters, business operations, funding requirements and other factors. Limited Liability Partnership or Private Company is preferred by promoters when seeking expansion of their OPC
    No
    Compulsory Conversion to Private Limited Company Applicable?
    NO
    NO
    NO
    NO
    Yes, if turnover exceeds 2 cr

    FAQ

    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.

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