Trust Registration in Delhi

A trust is a legal entity that is created to hold assets for the benefit of others. 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. To Start the process chat with our experts. 

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Trust Registration- 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.

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

Trusts can be classified into various categories based on the activities they undertake. Here are the different types of trusts:

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

The following requirements must be completed in order to be eligible for trust registration:

  • A trust must be formed by at least two or more individuals.
  • The trust must be formed in conformity with the rules of the Indian Trusts Act of 1882.
  • The trust’s objectives must not violate any existing Indian laws.
  • The trustee must conduct their activities in a fair and just manner.
  • The formation of the trust should not be contrary to public interest or any other applicable laws.
  • The trust activities should align with the objectives stated in the trust deed.
  • The trust deed must be drafted appropriately, reflecting the genuine interests of the parties involved in forming the trust.
  • The trust has more than two purposes, both purposes must be valid. If one goal is reasonable and the other is invalid, the trust cannot be formed.

Fees for Trust Registration

  • 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.

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Benefits of Trust Registration in India

Asset Protection

Trust registration safeguards your assets from risks like lawsuits, creditor claims, and financial downturns. Placing your assets in a trust can help reduce loss in unforeseen circumstances.

Tax Benefits

Trusts being non-profit entities are subject to many tax exemptions under the Income Tax Act. The exact provisions may vary based on the type of trust and jurisdiction of registration

Privacy and Confidentiality

Registering a trust provides a level of privacy and confidentiality. Unlike public entities, trusts are not required to disclose beneficiaries or details about the trust’s activities publicly.

Charitable Endeavors

Charitable trusts promote philanthropic endeavors to make a positive impact on society. You can enjoy tax benefits on your personal contributions to registered trust

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

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.