Trust Registration

Trust implies the transfer of a property (cash, shares or valuable asset) from the owner to another person. There are two types of trusts – Private and Public. A private trust is formed for the benefit of a group of people. Public trust is formed for the benefit of the general public.

  • Documents Required
  • Overview
  • Trust Compliances
  • Tax exemption

Documents required for Trust Registration

In India, Trust Registration cannot be done without proper identity and address proof. These documents will be needed for all the directors and the shareholders of the company to be incorporated. Listed below are the documents that are accepted by MCA for the online company registration process acceptable.

Identity And Address Proof

  • Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs)
  • Scanned copy of Voter’s ID/Passport/Driver’s License
  • Scanned copy of the latest bank statement/telephone or mobile bill/electricity or gas bill
  • Scanned passport-sized photograph specimen signature (blank document with signature [directors only])

For the foreign nationals, an apostilled or notarized copy of the passport has to be submitted mandatorily. All documents submitted should be valid. The residence proof documents like the bank statement or the electricity bill must be less than 2 months old.

Registered Office Proof

For online company registration in India, the company must have a registered office in India. To prove admittance to the registered office, a recent copy of an electricity bill or the property tax receipt or water bill must be submitted. Along with the rental agreement, utility bill or the sale deed and a letter from the landlord with her/his consent to use the office as a registered office of the company should be submitted.

  • Scanned copy of the latest bank statement/telephone or mobile bill/electricity or gas bill
  • Scanned copy of Notarized rental agreement in English
  • Scanned copy of No-objection certificate from the property owner
  • Scanned copy of sale deed/property deed in English (in case of owned property)

Note: Your registered office need not be a commercial space; it can be your residence too

Trust registration in India - An overview

Public Trust is the most convenient way of starting a non-governmental organization or NGO. A trust functions on the objective of eradicating poverty, providing education to the underprivileged and offering medical relief apart from the generalized aim of promoting arts, science and literature. It is to be noted that trusts are irrevocable which means they cannot be amended or terminated without the permission of the court. Vakilsearch helps in providing you with the trust registration certificate with a few documents like a deed of trust, rental agreement, etc.

In India, there are no specific laws to govern the public trust, however, some states like Maharashtra and Tamil Nadu have their own public trust Act.

Online Trust registration - A detailed process

Vakilsearch helps you in providing with the trust registration online through very simple steps. As an initial step in registering the trust, the founder of the trust or the “Author of the Trust” or the “Settlor of the Trust” has to figure out in a document the objectives of the trust and the manner in which the trustees have to work towards achieving the goals of the Trust. This document that contains all such details is called a Trust Deed, which is also called a deed of trust.

Once this is made, thereafter, an application for registration of the trust shall be moved before the Registrar of Trust along with the Trust Deed or a deed of trust. The appropriate jurisdiction for registration of the trust is usually where the registered office of the trust is located.

A trust shall after its registration shall do the following

  • Obtain PAN card
  • Book Keeping and Accounts
  • Annual IT filings
  • Shops and Establishment License - in case of employment
  • Professional Tax Registration - if applicable
  • GST registration - if applicable

Applicability of tax exemption

There is a general notion that trust need not have to pay tax as they work towards the welfare of the public at large. But this is not true. A trust, like any other legal entity, is liable to pay tax. In order to be exempted from tax, trust is required to obtain certification for the said exemptions such as Section 12 A, 80G etc. from the Income Tax authorities.

Trust registration in India - An overview

Public Trust is the most convenient way of starting a non-governmental organization or NGO. A trust functions on the objective of eradicating poverty, providing education to the underprivileged and offering medical relief apart from the generalized aim of promoting arts, science and literature. It is to be noted that trusts are irrevocable which means they cannot be amended or terminated without the permission of the court. Vakilsearch helps in providing you with the trust registration certificate with a few documents like a deed of trust, rental agreement, etc.

In India, there are no specific laws to govern the public trust, however, some states like Maharashtra and Tamil Nadu have their own public trust Act.

Online Trust registration - A detailed process

Vakilsearch helps you in providing with the trust registration online through very simple steps. As an initial step in registering the trust, the founder of the trust or the “Author of the Trust” or the “Settlor of the Trust” has to figure out in a document the objectives of the trust and the manner in which the trustees have to work towards achieving the goals of the Trust. This document that contains all such details is called a Trust Deed, which is also called a deed of trust.

Once this is made, thereafter, an application for registration of the trust shall be moved before the Registrar of Trust along with the Trust Deed or a deed of trust. The appropriate jurisdiction for registration of the trust is usually where the registered office of the trust is located.

A trust shall after its registration shall do the following

  • Obtain PAN card
  • Book Keeping and Accounts
  • Annual IT filings
  • Shops and Establishment License - in case of employment
  • Professional Tax Registration - if applicable
  • GST registration - if applicable

Applicability of tax exemption

There is a general notion that trust need not have to pay tax as they work towards the welfare of the public at large. But this is not true. A trust, like any other legal entity, is liable to pay tax. In order to be exempted from tax, trust is required to obtain certification for the said exemptions such as Section 12 A, 80G etc. from the Income Tax authorities.