{"id":1813,"date":"2021-02-01T09:42:19","date_gmt":"2021-02-01T09:42:19","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=1813"},"modified":"2021-02-03T05:22:22","modified_gmt":"2021-02-03T05:22:22","slug":"trust-registration-process-under-the-indian-trust-act-1882","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/trust-registration-process-under-the-indian-trust-act-1882\/","title":{"rendered":"Trust Registration Process under the Indian Trust Act 1882 \u2013 An Overview"},"content":{"rendered":"\n<p>Trust\nRegistration under the Indian Trust Act, 1882 starts with the drafting of a\nTrust Deed, and this deed is the main requirement in the process of Trust\nRegistration in India. Trust Deed is formed on a non-judicial stamp paper, and\nevery state in India has fixed its stamp duty rate. A Trust can be either\npublic or private, where Private Trusts are governed according to the Indian\nTrust Act, 1882. As per the Indian Trust Act, 1882, the Trust is an\norganization where you or the Trustor can say the owner decides to transfer the\nright of his property to a trustee. The 3<sup>rd<\/sup> person or beneficiary\ncan benefit out of it. Scroll down to check more information regarding the\nTrust Registration under the Indian Trust Act, 1882.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3b62e97dcd6\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3b62e97dcd6\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/trust-registration-process-under-the-indian-trust-act-1882\/#Types_of_Trust\" title=\"Types of Trust\">Types of Trust<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/trust-registration-process-under-the-indian-trust-act-1882\/#Types_of_Parties_in_a_Trust\" title=\"Types of Parties in a Trust\">Types of Parties in a Trust<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/trust-registration-process-under-the-indian-trust-act-1882\/#What_is_a_Trust_Deed\" title=\"What is a Trust Deed?\">What is a Trust Deed?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/trust-registration-process-under-the-indian-trust-act-1882\/#Benefits_of_Trust_Registration_under_the_Indian_Trust_Act_1882\" title=\"Benefits of Trust Registration under the Indian Trust Act,\n1882\">Benefits of Trust Registration under the Indian Trust Act,\n1882<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/trust-registration-process-under-the-indian-trust-act-1882\/#Eligibility_Criteria_for_Trust_Registration\" title=\"Eligibility Criteria for Trust Registration\">Eligibility Criteria for Trust Registration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/trust-registration-process-under-the-indian-trust-act-1882\/#Documents_Required_for_Trust_Registration_under_Indian_Trust_Act_1882\" title=\"Documents Required for Trust Registration under Indian Trust Act, 1882\">Documents Required for Trust Registration under Indian Trust Act, 1882<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/blog\/trust-registration-process-under-the-indian-trust-act-1882\/#What_is_the_process_of_Trust_Registration_under_the_Indian_Trust_Act_1882\" title=\"What is the process of Trust Registration under the Indian\nTrust Act, 1882?\">What is the process of Trust Registration under the Indian\nTrust Act, 1882?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/blog\/trust-registration-process-under-the-indian-trust-act-1882\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types_of_Trust\"><\/span>Types of Trust<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li><strong>Societies<\/strong>: It is primarily created for the advertising of arts, commerce, and science. Societies are controlled by the&nbsp;Societies Registration<strong>&nbsp;<\/strong>Act, 1860, and the society&#8217;s events are for only for non-profit purposes.<\/li><li><strong>Private Limited Trusts<\/strong>: Private limited Trusts are ruled under the Indian Trust Act, 1882. These trusts are formed for conducting various activities for the family, individuals, or close one relative.<\/li><li><strong>Public Limited Trusts<\/strong>: Public Limited Trusts are established for charity, education, and religious purposes. Charitable and Religious Trusts are the most common public trusts in India.<\/li><li><strong>Companies under Section 8 of the Companies Act, 2013<\/strong>: All the Private Limited Companies comes under Section 8 of the Companies Act, 2013. The primary objectives are for promoting arts, education, crafts, science, environmental activities, etc.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types_of_Parties_in_a_Trust\"><\/span>Types of Parties in a Trust<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Below\nare the three type of parties in a Trust:<\/p>\n\n\n\n<ul><li><strong>Trustor:<\/strong>\nAn individual who creates a trust is known as Trustor, which means a Trustor is\nthe Trust&#8217;s Owner. <\/li><li><strong>Trustee:<\/strong>\nIt is a person who holds the Trust&#8217;s property given by the Trustor.<\/li><li><strong>Beneficiary:<\/strong>\nIt is a person for whom the Trust is formed. It is a 3<sup>rd<\/sup> party who\nmay be recognized to the Trustee and Trustor.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_Trust_Deed\"><\/span>What is a Trust Deed?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>For the <span style=\"color: #0000ff;\"><strong><a style=\"color: #0000ff;\" href=\"https:\/\/swaritadvisors.com\/trust-registration\">Trust Registration<\/a><\/strong><\/span> under the Indian Trust Act, 1882, a Trust Deed is required. It is like a tool of Trust by which Trust is declared. A trust deed has several clauses like the registered office clause, name clause, settler, trustee clause general body member clause and other rules &amp; regulations.<\/p>\n\n\n\n<p>Following\nare all the requirements for the Registration for Trust Deed:<\/p>\n\n\n\n<ul><li>Trust Deed on stamp paper with\nmandatory stamp duty.<\/li><li>Latest passport size photograph\nand identity proof of settlor.<\/li><li>Latest passport size photograph\nand identity proof of settlor.<\/li><li>Latest passport size photograph\nand identity proof of 2 trustees.<\/li><li>Latest passport size photograph\nand identity proof of 2 witnesses.<\/li><li>Signature of the settlor is required\non each page of Trust Deed.<\/li><li>Two witnesses on the Trust\nDeed.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_of_Trust_Registration_under_the_Indian_Trust_Act_1882\"><\/span>Benefits of Trust Registration under the Indian Trust Act,\n1882<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following\nare some benefits of Trust Registration under the Indian Trust Act, 1882:<\/p>\n\n\n\n<ul><li>All the Trusts in India get\nland from the Government.<\/li><li>The benefit of 80g Certificate.<\/li><li>Tax Benefits.<\/li><li>White money for the\nconstriction of building.<\/li><li>Benefits on Income Tax\/Service.<\/li><li>Registered Trust under the\nTrust Act uses Government Registered Name.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_Criteria_for_Trust_Registration\"><\/span>Eligibility Criteria for Trust Registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following\nis the eligibility criteria for Trust Registration under the Indian Trust Act,\n1882:<\/p>\n\n\n\n<ul><li>Minimum two or more individual\nare required for the Trust Registration under the Indian Trust Act.<\/li><li>All the parties must not be\nqualified under the law in force in India.<\/li><li>The goal of the Trust must not\ngo against any law in India. <\/li><li>All the practices are conducted\nby the Trustee must be reasonable. <\/li><li>Ensure that any activities must\nnot harm any individual.<\/li><li>The aim of forming the Trust\nmust be valid if any object is invalid then the Trust cannot be created.<\/li><li>The formation of Trust should\nnot go against any public interest or any other law in force in India.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_Required_for_Trust_Registration_under_Indian_Trust_Act_1882\"><\/span>Documents Required for Trust Registration under Indian Trust Act, 1882<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following are some vital documents required for trust registration under the India Trust Act, 1882:<\/p>\n\n\n\n<ul><li>Submit a Trust Deed. A Trust\nDeed must contain the following information<strong>:<\/strong><\/li><li>Trust motive.<\/li><li>Information of the settler and\ntrustees like name, age, address, father\u2019s name. Occupation, e-mail id, designation,\nand mobile number.<\/li><li>Total number of Trustees.<\/li><li>Address of registered office of\nthe Trust.<\/li><li>Rules &amp; Regulations which\nmust be followed by the Trust.<\/li><li>Proposed name of the Trust.<\/li><li>Submit a copy of Id proof of\nthe settlor and Trustee.<\/li><li>Submit the recent passport size\nphotograph of the settlor and Trustee.<\/li><li>Settler presence with their\noriginal id proof and two witnesses at the time of Trust Registration in India.<\/li><li>Submit a self-attested copy of\nthe id proof of the settler like Voter\u2019s ID, Aadhar Card, Passport, Driving\nLicense or any photo ID.<\/li><li>Submit a self-attested copy of\nthe ID proof of each Trustee like Voter\u2019s ID, Aadhar Card, Passport, Driving\nLicense or any photo ID.<\/li><li>PAN Card.<\/li><li>Submit NOC or No Objection\nCertificate signed by the owner of the land.<\/li><li>Submit any address proof of the\nTrust&#8217;s registered office such as water bill, gas bill, phone, electricity\nbill, and make sure all the bill must be latest.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_process_of_Trust_Registration_under_the_Indian_Trust_Act_1882\"><\/span>What is the process of Trust Registration under the Indian\nTrust Act, 1882?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following is the procedure of Trust Registration under the Indian Trust Act:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/infographics-without-heading-2.png\" alt=\"process of Trust Registration under the Indian Trust Act, 1882\" class=\"wp-image-1837\" width=\"409\" height=\"275\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/infographics-without-heading-2.png 985w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/infographics-without-heading-2-300x202.png 300w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/infographics-without-heading-2-768x518.png 768w\" sizes=\"(max-width: 409px) 100vw, 409px\" \/><\/figure><\/div>\n\n\n\n<ul><li><strong>Step 1: Name Selection: <\/strong>The first step is to select a distinctive name for your Trust and such name must be new and must not lead to any violations.<\/li><li><strong>Step 2: Determine the number of Trustees:<\/strong> Once you choose the name of Trust, then the parties should choose the settlers of the Trust, and a minimum of two trustees are required for creating Trust, and the Trustees must be an Indian Resident.<\/li><li><strong>Step 3: Draft a Trust Deed:<\/strong> After that, you have to draft a Trust Deed. You can check all the requirement of drafting a Trust Deed from above.<\/li><li><strong>Step 4: Register with sub-registrar:<em> <\/em><\/strong>For the Registration of Trust Deed, trustees and Trust&#8217;s Author should be present with the sub-registrar office along with two witnesses. There must be properly attested copy of Trust Deed and registration fee must be paid.<\/li><li><strong>Step 5: Apply for PAN and TAN:<\/strong> On the Registration of Trust Deed, apply for PAN and TAN of the company afterwards apply for a bank account.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It could be a good idea to establish a trust in India for someone who wants to carry out charitable activities with some tax benefits, but for that, you need to obtain Trust Registration under the Indian Trust Act. The limitations for creating such a firm are considerably low compared to other registrations, but the things start becoming complicated for the Trust for regulations. If you want to establish a legally oriented trust in India, then you can contact <span style=\"color: #0000ff;\"><strong><a style=\"color: #0000ff;\" href=\"https:\/\/swaritadvisors.com\/\">Swarit Advisors<\/a><\/strong><\/span>.<\/p>\n\n\n\n<p><b>Also, Read:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/learning\/process-of-ngo-registration\/\">Process of NGO Registration in India\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Trust Registration under the Indian Trust Act, 1882 starts with the drafting of a Trust Deed, and this deed is the main requirement in the process of Trust Registration in India. Trust Deed is formed on a non-judicial stamp paper, and every state in India has fixed its stamp duty rate. A Trust can be [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":1815,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[73],"tags":[320],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1813"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=1813"}],"version-history":[{"count":7,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1813\/revisions"}],"predecessor-version":[{"id":1908,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1813\/revisions\/1908"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/1815"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=1813"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=1813"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=1813"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}