What is a Trust?

A Trust is a legal arrangement where the owner of a property (the Settlor) transfers the ownership of that property to another person or group of persons (the Trustees) for the benefit of a third person or the general public (the Beneficiaries).

In India, Trusts are generally classified into two types:

1. Private Trust: Created for the benefit of specific individuals or families.
2. Public Charitable Trust: Created for the benefit of the general public (Education, Medical Relief, Relief of Poverty, etc.).

Advantages of Registering a Trust

• Legal Recognition: Registration provides the Trust with a legal existence, allowing it to open bank accounts and enter into contracts.
• Tax Exemptions: Registered Public Trusts are eligible for tax benefits under Section 11, 12A, and 80G of the Income Tax Act, which encourages donors to contribute more.
• Minimal Compliance: Compared to Section 8 Companies, Trusts generally have fewer annual filing requirements with the government.
• Control & Continuity: The Settlor can define the rules of management in the Trust Deed, ensuring that the mission of the Trust continues even after the original founder is gone.
• Protection of Assets: Assets held under a Trust are legally protected and must be used strictly for the objects mentioned in the Deed.

Key Components of a Trust

To form a Trust, three essential elements are required:

1. The Settlor: The person who creates the trust and provides the initial property/fund.
2. The Trustees: The individuals responsible for managing the Trust. (Minimum 2 Trustees required).
3. The Trust Deed: The “Constitution” of the Trust, which contains all the rules, objectives, and power of the Trustees.

Document Checklist for Trust Registration

To prepare a strong Trust Deed and complete the registration at the Sub-Registrar’s office, we need:

From the Settlor & Trustees:

• Identity Proof: PAN Card and Aadhaar Card.
• Address Proof: Voter ID or Passport.
• Photographs: Recent passport-size digital photos.

For the Registered Office:

• Proof of Address: Electricity Bill or Water Bill of the office premises.
• NOC: A No Objection Certificate from the property owner if the office is not owned by the Settlor.

Trust Details:

• Proposed Name: A unique name for the Trust.
• Objects: A clear list of the charitable activities the Trust intends to perform.

Our Step-by-Step Registration Process

Unlike companies, Trust registration usually involves a physical visit to the Local Sub-Registrar’s Office.

1. Drafting the Trust Deed: Our legal experts draft a comprehensive Trust Deed on stamp paper, customized to your specific charitable goals.
2. Appointment for Registration: We schedule a date for the formal registration at the Sub-Registrar’s office.
3. Execution of Deed: The Settlor and two witnesses must sign the Deed in the presence of the Registrar.
4. Obtaining the Certificate: Once the Registrar approves, the registered Trust Deed is issued, serving as the official proof of existence.
5. PAN & TAN Application: We apply for a separate PAN card for the Trust to enable financial transactions.

Why Samyuta Tax Consultancy?

• In-Depth Legal Knowledge: Our group of experts is well-versed in both Central and State-specific Trust laws.
• End-to-End Service: From drafting the first line of your Deed to obtaining 12A & 80G tax-exempt status, we handle it all.
• Personalized Guidance: We help you choose the right Trustees and structure your objects to ensure maximum social impact and zero legal hurdles.
• Affordable & Ethical: We provide transparent pricing, ensuring your charitable funds are spent on your mission, not on hidden consultancy fees.