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Trust Registration

    Trust Registration in Delhi, India

    A trust is a form of arrangement in which the asset is transferred by the owner (the settlor) to another person (trustee) for the benefit of the class of persons known as beneficiaries. The interested parties, i.e., the trustor, and the trustee, must obtain a trust deed to transform the Trust into a legal entity. Such agreements help to clarify the scope of authority to the trustee who will manage the assets of the settlor. They are supposed to be neutral bodies who help others.

    In our Constitution, the word trusts came into existence by the Indian Guests Act of 1892. This act also gives a legal definition of world trust. A trust can be Private or Public. In a public trust, the beneficiary is the general public; on the other hand, in Private trust the beneficiaries are individuals or families.

    In general, setting up a trust isn’t a daunting errand as only two members are required to lay its foundation. To serve this purpose, the members need to prepare a trust deed on a non- judicial stamp paper. The trust deeds incorporate avalanches of detail, such as the Trust’s objective, aim, role, and responsibilities of the active members.

    Such legal entities are set up via the Charitable Trust Registration process, a guideline prescribed under the Trust Act. Every charitable Trust needs a trust deed registration for the establishment purpose. Henceforth, the charitable trust registration is called a trust deed registration. At present, there are more than seven hundred thousand legally registered NGOs working in the country. However, the majority of them lack the official seal. The trustees need to refer to any documents other than a trust deed for cross-reference of actions within the Trust.

    Benefits of Trust Registration Online

    Autonomous and Executes Accurate Control

    By virtue of an agreement, the trustor and the trustee play a distinctive role in managing the Trust. The trustee must stay autonomous and executes accurate control over the Trust’s asset or property. A trust would not remain legally valid in the case if the settlors continue to rein the activities of the Trust even after signing the trust deed.

    Benefits for their Heirs and Successors

    Charitable trust registration is often set up by the people who wish to engage with charitable activities while reaping benefits for their heirs and successors. Other prominent reasons for which Trust is being set up are to avail tax exemptions. Non-profit organizations are a perfect example of charitable trusts. However, these benefits can only be availed in the situation when the charitable Trust acts as a legal entity.

    Legal Roadmap to Guide the Charitable Entities

    In India, the Federal and State Law Departments have paved down the legal roadmap to guide the charitable entities and the common people. This process is meant to aid those help seekers (especially donors) who wish to transfer their assets to the trusts for additional tax benefits. This way, these donors can save a large sum of money that can later transfer to the legal heirs.

    Long-Term Taxation Benefits

    This is the primary reason for such an investment where donors can reap long-term taxation benefits through continual donations in a reputable trust organization. Private trust registration requires the person to grab the essential information about setting up a new trust. Both state and federal authorities have their legal roadmap that serves as a purpose. The specific law, such as the Trusts Act 1882, has been established and proclaimed to encourage
    the process of registration.

    Statutory Rights

    Ordinarily, the authority that grants the NGO trust registration exercises the statutory rights and common regulations to enforce charitable trusts. But it should be noted that nearly all charitable NGOs are required to register under concerned authorities.

    Documents Required for Trust Registration in Delhi, India

    • Copy of identification proof (Passport, Driving license, Voter ID, and Aadhaar card) of trustors and trustees.
    • Copy of utility bills.
    • Trust deed on a Stamp paper
    • Copy of the property registration.
    • No objection certificate from the owner of a rented property.

    Society Trust Registration Procedure

    • The first and the most important of all is to get a Trust deed registration, which is usually prepared by a lawyer. A Trust deed is a synopsis or a summary of the objectives and the need for opening a particular Trust. In this, the concerned party has to clearly mention their intentions and aims to open a Trust. Also, in this document, the modes required for efficient management of the Trust are to be mentioned, along with details of the land it is built on. Minute information such as- the procedure for the appointment of volunteers to their removal process also needs to be mentioned in this deed.
    • Now, for the execution of this legal document, you need to purchase an e-Stamp paper.
    • The next step involves the fixation of a particular date (suitable to the registrar and the party involved in taking permission for opening the Trust), for the registration process in the Sub-registrar office. This forms the basis of the entire procedure as one tries to get permission from the government of India to open a Charitable Trust. The entire future of the Trust depends on this process.
    • In the above-mentioned process of registration, you have to pay the required fees set by the government. It is usually a reasonable amount.
    • You also need 2 witnesses as well at the time of the registration process with the sub- registrar. In fact, all the trustees are required to be present on that day to do complete the legal proceedings.
    • The Registration Trust Deed is then collected from the registrar’s office after a week. In that time, the authorities go through the entire details of the Trust mentioned in the deed and decide whether to grant the permission or not.

    Why Choose TaxOnTrack for Trust Registration?

    We have a team of experienced members who are experts at handling new trust registration. We will work with you and follow the 12ab registration process. TaxOnTrack team is just one call away in case you need to get your trust deed registration on time and at a budget- friendly price. Contact us for further information.