As per the Public Trust Act of all states, registration of Trust is mandatory if it involves charitable
purpose or when there is a transfer of immovable property in the name of the trust.
Public Trust is the most convenient way of starting an 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.
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.
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.
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. The appropriate jurisdiction for registration of the trust is usually where the registered office of the trust is located.
The trust deed is the primary and the most essential document of the trust which states the reason for forming a trust, its functions, to its working, and until its closure. Following are the important clauses in the Trust Deed:
The following documents are required during the registration of the Trust:
The Trust constitutes the Board of Trustees. The Board constitutes the following:
The quorum of the Board of Trustees shall not exceed a maximum of 21 members.
A trust shall after its registration shall do the following
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.
Just tell us a little bit about your business and you'll have the registered trust deed in 20 working days (subject to government approval). It's that simple. In addition to yours, we'll be handling around 400 requests this month.
We make your interaction with the government as smooth as is possible by doing all the paperwork for you. We will also give you absolute clarity on the process to set realistic expectations.
Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we'll try to ensure that your doubts are cleared before they even arise.
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