WHAT IS TRUST REGISTRATION?

Registration of Trust is a process of legalizing the trust deed from the registrar. All registered Trusts in India are governed by the Indian Trust Act 1882 and it also facilitates the legal provisions for the same. In India, trust can be created by any individual who is competent to contract for purposes which include relief of poverty, education, medical relief, the advancement of any object of general public utility, etc. One can establish two types of trusts in India; (i) a public trust, which is formed for the benefit of the general public, (ii) a private trust, which is formed for the benefit of its beneficiaries. The non-profit organizations in India can also get register as Private Limited Company under section 8 of the Companies Act. The parties involved in the trust registration process are trustor, trustee, and beneficiary. For registration of trust, a non-governmental, non-profit entity, at least 2 Trustees, a lawful purpose for the creation of the Trust, a Stamped Trust Deed along with General public or private individuals as beneficiaries are required.

Eligibility

The following criteria would apply to trust registration:
At least two or more persons are required for forming the trusts.
The provisions of the Indian Trusts Act, 1882 should be followed while forming a trust
The parties must not be disqualified under any law in force in India.
The objectives of the trust must not go against any law in India.
The trustee must conduct fair practices
It must not go against public interest or any other law in force
Non trust activities must injure any person.
The activities conducted by the trust should be according to the memorandum.
Trust Deed must be properly drafted and intend the real interests of the parties
If there are two or more purposes of creating the trust, then those purposes must be valid. If one object is valid and another object is invalid, then the trust cannot be formed

Documents Required for Trust Registration

Proof related to Identity for Trustor & Trustee such as Aadhaar Card, Voter ID, Passport, DL Address Proof related to Registered Office such as Copy of Certificate of Property/Utility Bills No objection certification from the Landlord if the property is rented . Trust deed's objective Detail about the Trustee and settlor such as Self-attested copy Id & Address Proof and occupation Trust Deed on Proper Stamp Value Trustee and settlor Photos Trustee and settlor PAN Trust deed must reflect the following information: Number of trustees Trust registered address Proposed name of trust Proposed Rules that will govern the trust Presence of settlor as well as two witnesses at the time of registration of Trust

TRUST REGISTRATION PROCESS IN INDIA

STEP 1 : Pick a Perfect Name for the Trust

While registering a trust, the first and foremost step is picking an apt and decent name. While selecting a name you need to keep in mind that it should fit the provisions of the Emblems and Names Act, 1950. Also, when it comes to Trademark Act, there should be no violation of the said Act. And the name should be original.

STEP 2 : Trust Deed Drafting

Drafting of Trust Deed is a vital procedure it lays the foundation of Trust formation in India. It must be drafted with utmost carefulness, in the manner prescribed under law. After a Trust Deed is drafted, applicants can submit it to the office of the Registrar of Trusts, along with the required documents, and begin the process of Trust Registration.

STEP 3 : Application for Trust Registration

With the registration of the Trust Deed, the process for Trust Registration begins. After drafting the Trust Deed, it is submitted to the Office of the Registrar of Trust with the documents of the settlor, and the witnesses. After the successful submission, the registrar examines the deed and he may ask the settler to appear before him, with two witnesses, and sign the deed in his presence. Once the deed has been signed, the registrar begins the process of NGO Trust registration online.

STEP 4 : Issuance of Trust Registration Certificate

Once the Certificate of Trust Registration to registered Trust Is issued, the process of registration ends here. The Certificate of Registration is a document of conclusive proof that the Trust has been registered by the registrar. It nearly takes a week to complete the process of Trust Registration in India.