Trust Registration in Bangalore
A trust is an agreement between people which are referred as trustees to manage the property and control them to benefit other people called as beneficiaries or for charitable purposes. A public trust is usually floated when the property involved, specifically in terms of land and building. Trust can be either a private trust or a public trust. Private trusts are governed by the Indian trust act and it is used for private purposes such as running the private institution or private estate. It could not be enjoyed any tax benefits from the Government of India. If you want to do some charitable work for the public, you can setup a public charitable trust.
Trusts are usually registered using an important document called “Trust Deed”. The main instrument is trust deed, the main objectives, mode of management should be enshrined. Trust deed should be very appropriate and clear about the aims and objectives of the trust, how the trustees should be appointed or removed, how the trust should be managed or controlled, etc. The trust deed should be signed by both the trustees and settlors in the presence of two witnesses. The value of trust deed depends upon the valuation of the trust property; it should be executed on non-judicial stamp paper.
Common characteristics and the process of trust registration:
- A trust needs a minimum number of two trustees; there is no upper limit to the number of trustees.
- Maximum number of trustees can be decided and that number must be mentioned in the trust deed. Collective of trustees are referred as board members. Board members govern the trust.
- Board of trustees have various designation for trustees, the very common designations are managing trustee and chairperson.
- A trust must have a charitable purposes;
- Trustees make the major decisions.
- It is setup under a trust deed which outlines how it operates;
- When compared to incorporated societies, it often has more limited community or the member involvement.
- Trustees are generally not accountable unless the deed specifically set the ways out.
- It can be legally wound up at any time unless the specific terms are stipulated about the existence in the trust deed.
- To exempt from the payment of tax, trusts need to be registeredseparately with the IRD.
- All the sites are allowed to work on all India level.
- Trustees are the lifelong members; their tenure is clearly specified in the deed. Electoral process is not involved in the appointment of trustees.
- Trustees cannot be allowed to draw any remuneration from the common fund but they may take the reasonable compensation as per the professional services they do for the trust.
- The profits which are earned by the bank i.e. interest gained from the bank cannot be distributed among the trustees.
- Amendment can be made to a trust deed through a supplementary trust deed.
- The most significant thing in the trust deed is you should pay the very special attention to its objectives and have a thorough knowledge about the objectives which had been written in the deed. Then only you can function very smoothly without any problems.
- There is no difference between the foundation and the trust.
- Settlor and the two witnesses are required to be present before the sub-registrar at the time of registration process. Sub-registrar will check the identity of these people.
Things to be mentioned in the trust deed:
- Name of the trust.
- Name of the trustees along with their addresses.
- Name and address of the settler. Settler is the one who is setting up the trust.
- Address of the registered office of the trust.
- Rules and regulations of the trust.
- Objectives of the trust.
Application for trust registration:
The application has to be made to the official having jurisdiction over the region in which the trust to be registered. Name of the trustees, mode of succession etc. need to be mentioned by the applicant. In the application form, the applicant should sign before the registrar, sub-registrar, superintendent or the regional officer of the regional office of the authorised registrar or the charity commissioner. This form has to be submitted along with the trust deed.
At the time of making an application for registration, two other documents also need to be attached they are consent letter and the affidavit
Documents required for trust registration:
- Identity proof of trustees, witnesses and settlor has to be produced.
- Certified charitable trust deed.
- Application which is for the incorporation of trustees as a board. Majority of trustees need to be signed in the application.
- Statutory declaration, states that any property which are hold by the trustees for other trusts, a resolution need to be passed for the approval of incorporation and the declaration for that person has to be approved by the trustees).
- Registered company address.
- House tax receipt or the water bill can be produced as a proof of evidence for the registered office of the trust.
- Signed authority letter.