#CS KNOWLEDGE PLATFORM

Formation and Registration of a Non -Profit Organisations in India
1) Trust
2) Society
3) Section-8 Company (previous section 25)
Additional Licensing/ Registration

Hence in this article we shall learn and understand the Procedure for Registration of Trust.

CS Ravi Garg

Procedure for Registration of Trust under the Indian Trusts Act 1882

LEGAL TERMINOLOGIES

· Trust: Trust” is an obligation annexed to the ownership of property, & arising our of a confidence reposed in and accepted by the owner, or declared and accepted by him, for the benefit of another, or of another and the owner.

· Author of Trust – The person who reposes or declares the confidence is called “the author of the trust”

· Trustee– -Every person capable of holding property may be a trustee or a person who accepts the confidence is called the “trustee”. (Section 10)

· Beneficiaries – The person for whose benefit the confidence is accepted is called the “Beneficiaries”

· Trust property – The subject matter of trust is called “Trust property” or “Trust Money”

· Instrument of Trust – The instrument, if any, by which the trust is declared is called the “Instrument of Trust”.

Details required for CREATION OF A TRUST

Name of the Author/ Settlor of the Trust
Name of Trustee
Name of the trust
Place/ Address of the trust
Main Objects of the trust (charitable or Religious)
Property of the trust which the settler gives
The rights & Duties of the beneficiary/ies (beneficiaries who will enjoy benefits out of that property.)
Person capable to enforce that obligation called cestuique trust;
intention of the author or founder to create a trust;
the purpose of the trust;

(Trustees : A trust needs a minimum of two trustees; there is no upper limit to the number of trustees. The Board of Management comprises the trustees.)

STEPS TO BE FOLLOWED

1. A trust deed is the main instrument of trust wherein the objects and mode of management should be enshrined, how the trust should be managed, how other trustees may be appointed or removed, etc. In every trust deed, the minimum and maximum number of trustees has to be specified.. The trust deed should be signed by both the settlor/s and trustee/s in the presence of two witnesses. The trust deed should be executed on non-judicial stamp paper, the value of which would depend on the valuation of the trust property.

2. Purchase a Stamp Paper of requisite value

(8 % of the value of property of the trust in Delhi. The rate varies from state to state)

3. Date is to be fixed for the registration of Trust Deed with the Sub Registrar Office under
the Indian Trusts Act, 1882:

4. Government Registration Fees is paid. (Trust Deed on stamp paper of requisite value)

One passport size photograph & copy of the proof of identity of the settler, two trustees, two witnesses is required.

5. All the Trustees and two witness visit the Local Sub Registrar Office in the fixed day for registration.

6. The Registrar retains the photocopy & returns the original registered copy of the Trust Deed.

(For any professional and legal help, ping me csravi2014@gmail.com and 7838204665)

Detailed Process Application for Registration :

The application for registration should be made to the official having jurisdiction over the region in which the trust is sought to be registered.

After providing details (in the form) regarding designation by which the public trust shall be known, names of trustees, mode of succession, etc., the applicant has to affix a court fee to the form and pay a registration fee which may range differently, depending on the location and value of the trust office and trust property.

The application form should be signed by the applicant before the registrar, sub-registrar, deputy registrar, regional officer or superintendent of the regional office of the charity commissioner or authorised registrar. The application form should be submitted, together with a copy of the trust deed.

Two other documents which should be submitted at the time of making an application for registration are affidavit and consent letter.

WHO MAY BE TRUSTEE?

Every person capable of holding property may be a trustee: but, where the trust involves the exercise if discretion, he cannot execute it unless he is competent to contract. No one is bound to accept a trust. Any number of persons may be appointed as trustees. However, no trust is defeated for want of a trustee. Where there is no trustee in existence, an official trustee may be appointed by the court and the trust can be administered.