Trust Registration in Delhi

Are you thinking about setting up a trust in Delhi? Trust registration is an essential step that can provide numerous benefits and legal protections. Trusts can be used for a variety of purposes, including charitable, religious, educational, and personal reasons. Register your NGO as trust in Delhi with Trust Deed, PAN Card and TAN Number. Trust Registration in Delhi easy online process. Start your NGO Registration Process

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Trust Registration in Delhi - Overview

The Indian Trusts Act, 1882 governs the legal foundation for trust registration in Delhi. This law governs the establishment, operation, and dissolution of trusts in India. Trusts are permitted to be established under this law for a number of objectives, including charitable, religious, educational, and social activities.

What is Trust Registration?

Trust registration is the legal process of creating a trust, a legal entity that holds property or assets for the benefit of a specific individual, group, or purpose. Trusts are commonly used for estate planning, charitable purposes, and asset protection.The trust registration process involves the following parties:

  • Settlor/Author: The trustor is the person who establishes the trust. They are typically the owner of the assets or property being placed in the trust.
  • Trustee: The trustee is an individual or entity entrusted with the responsibility of managing and overseeing the trust. They hold and administer the trust property on behalf of the trustor and for the benefit of the beneficiary.
  • Beneficiary: The beneficiary is the person for whom the trust is created. They are the intended recipient of the benefits, assets, or property held within the trust. The beneficiary can be a third party, known to both the trustor and trustee, and they are entitled to receive the benefits according to the terms and conditions of the trust.

Type of Trust Registration

1. Public Trust :

Generally, public trusts are established to benefit the general public. They often established for charitable, educational, or religious purposes. The most popular types of public trusts in India are charitable and religious trusts.

2. Private Trust :

A private trust is one that is created primarily for the benefit and welfare of certain individuals or members of a family. A private Trust can be established for the benefit and welfare of a family member or individuals and for the administration and preservation of property

Requirements for Trust Registration

To register a trust in Delhi, you must fulfill certain requirements set by the authorities. Here are the key requirements for trust registration in the capital city:

  • Minimum of Two Trustees: A trust must have a minimum of two trustees who will manage the trust and its assets.
  • Registered Office Address: The trust must have a registered office address in Delhi where all official communications will be sent.
  • Trust Deed: A trust deed must be drafted, outlining the objectives, beneficiaries, and rules of the trust.
  • Notarized Trust Deed: The trust deed must be notarized by a public notary to authenticate its contents

Fees for Trust Registration

5,999
  • Trust Deed Drafting
  • Appointment fixing at Registrar office for Registration of Trust
  • PAN card of Trust
  • TAN number of Trust

Documents Required for Trust Registration

Documents of the Trustee & Settlers of the Trust

  1. PAN card of all Trustees & Trustors
  2. ID Proofs of all Trustees & Trustors
  3. Address Proofs of all Trustees &Trustors
  4. Coloured Photographs of all Trustees & Trustors

Documents of the Trust Premises

  1. Rent Agreement with Name of Trust or Electricity bill
  2. NOC from owner of Premises

Trust Registration Process

Step 1: Choosing a Name for the Trust:

The first step in trust registration is to choose a unique and meaningful name for the trust. The name should not be similar to any existing trust or company name or trademark. Trust name would not be like that its creating confusion between govt body and private body.

Step 2: Drafting the Trust Deed:

The trust deed is a legal document that outlines the trust’s objectives, beneficiaries, trustees, and rules for managing the trust. The trust deed must be drafted by a legal expert and must comply with the Indian Trusts Act, 1882, and other state-specific laws.

Step 3: Presentation of Trust Deed to Sub-Registrar office

Once Trust Deed drafting work get completed, please get your e-stamp paper of correct value and to take appointment for visit to Sub-Registrar office and to  submit the application for trust registration to the Registrar in Delhi. The application must be accompanied by the following documents:

  • Copy of the trust deed
  • Proof of address of the registered office
  • ID Proof of Trustee, Author and witness
  • Affidavit by the Author/ settlor and the trustees

Step 4: Verification and Approval

After submitting the application, Sub-Registrar will verify the documents and may conduct a physical verification of the registered office if needed. Once the verification is complete, the Registrar will issue a certificate of registration to the trust.

Step 5: PAN and TAN Application:

After receiving the certificate of registration, the trust must apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) from the Income Tax Department.

Benefits of Trust Registration in India

There are several benefits to registering a trust in Delhi, including:

  1. Legal Recognition: A registered trust is legally recognized and can enter into contracts and hold assets in its name.
  2. Tax Exemptions: Registered trusts are eligible for tax exemptions on income generated for charitable purposes.
  3. Credibility: Trust registration enhances the credibility and reputation of the trust in the eyes of donors, beneficiaries, and the public.
  4. Asset Protection: Registered trusts offer asset protection and ensure that the assets are used for the intended beneficiaries

Post-Registration Compliance For Trust

Once the trust is registered, it must comply with various post-registration requirements, including:

  • Filing of annual income tax returns
  • Maintaining proper books of accounts and records
  • Conducting annual general meetings
  • Submission of audit reports
  • Renewal of registration after a specific period
Annual Compliance for Private Limited Companies, trust registration in Delhi

FAQ's On Trust Registration

What is Trust?

A trust is an organization created for charitable or religious purposes. Trusts are governed by the Indian Trusts Act, 1882, and are registered with the Registrar of Trusts in the relevant state.

Who can create a trust?

Any person, including a non-resident Indian (NRI) or a foreign national, can create a trust in India.

What are the benefits of registering a trust in Delhi?

There are several benefits of registering a trust, including:

  • Legitimacy: Registration provides legal recognition to the trust and makes it a separate legal entity.
  • Tax exemption: Registered trusts are eligible for tax exemption under Section 12A and 80G of the Income Tax Act, 1961.
  • Transparency: Registration requires the trust to maintain proper books of accounts, which promotes transparency and accountability.
How can I check the status of my trust registration?

You can check the status of your trust registration by contacting the Registrar of Trusts in the relevant state.

Is it mandatory to register a trust in Delhi?

While it is not mandatory to register a trust in Delhi, registering a trust offers several advantages, such as legal recognition, tax benefits, and credibility. Registered trusts enjoy certain exemptions and benefits under the law, making it easier for them to raise funds, avail tax benefits, and gain the trust of donors and stakeholders.

What is the difference between a trust and a society?

A trust and a society are both legal entities that can be established for charitable or social welfare activities. The main difference lies in their legal structure and operational requirements. In a trust, the assets are held and managed by the trustees, while in a society, there is a governing body or managing committee comprising members who oversee the society’s affairs.

What are the tax benefits available to registered trusts in Delhi?

Registered trusts in Delhi are eligible for various tax benefits. They can avail of income tax exemptions under Section 11 and Section 12A of the Income Tax Act, 1961, for income earned from charitable activities. Additionally, donations made to registered trusts are eligible for tax deductions under Section 80G of the Income Tax Act, encouraging individuals and organizations to contribute to the trust’s cause.

What are the fees for trust registration in Delhi?

Our Trust Registration fee in Delhi is Rs.5999/- + Govt fee 

How many days will take to register a trust?

The duration of the trust registration process can vary depending on various factors, including the completeness of the documentation, the workload of the Registrar of Trusts, and any additional scrutiny required. On average, the trust registration process in Delhi can take anywhere from a few weeks to a few months.

What's the Difference between Revocable Trust vs. Irrevocable Trust?

A revocable trust, a trust in which the terms can be changed at any time. An irrevocable trust describes a trust that cannot be modified after it is created without the beneficiaries’ consent or court approval, and possibly both.

What is the difference between a charitable trust and a private trust?

Charitable trusts and private trusts are both legal entities established for specific purposes, but they differ in their objectives and how they operate:

  1. Purpose
    • Charitable Trust: A charitable trust is set up primarily for charitable purposes, such as providing relief to the poor, advancing education, promoting religion, or other activities beneficial to the community.
    • Private Trust: A private trust, on the other hand, is created for the benefit of specific individuals or families, rather than for charitable purposes. It may involve managing and distributing assets for the benefit of family members, including future generations.
  2. Beneficiaries:
    • Charitable Trust: The beneficiaries of a charitable trust are typically the general public or a specific charitable cause. They don’t have individual ownership rights over the assets held by the trust.
    • Private Trust: Private trusts have identifiable individual beneficiaries who have a vested interest in the trust’s assets. These beneficiaries may include family members, friends, or designated individuals.
  3. Tax Treatment:
    • Charitable Trust: Charitable trusts often enjoy favorable tax treatment because they are established for charitable purposes. Donors may receive tax deductions for contributions made to charitable trusts, and the trust itself may be exempt from certain taxes.
    • Private Trust: Private trusts may not enjoy the same tax benefits as charitable trusts. The tax treatment of private trusts varies depending on the jurisdiction and the specific circumstances of the trust and its beneficiaries.
  4. Public Benefit vs. Private Benefit:
    • Charitable Trust: The primary aim of a charitable trust is to benefit the public or a specific charitable cause. Any private benefit derived from a charitable trust must be incidental to its charitable purposes.
    • Private Trust: Private trusts primarily benefit the individuals or families named as beneficiaries. The trust’s assets are managed and distributed according to the terms of the trust deed for the benefit of these private beneficiaries.

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