Advantages of Trust Registration

The purpose behind starting any trust is to work on charitable activities and at the same point, you can enjoy the advantage of tax exemption. These charitable trusts are otherwise known as a non-profit organization.
Trust gains the legal entity and it can avail all the benefits offered of the trust by the government. Trust Act and Federal laws make it essential for such companies to get registered as per Charitable Trust.

The Departments of Federal and State Law in India provide an assortment of assets to handle and regulate the charitable associations and the common public. This procedure greatly helps those donators who are willing to donate their property and assets to the trusts, by making them trustees which helps in tax benefits.

During the charitable trust registration, it is mandatory that you have to understand and know some fundamental knowledge which is related to trust company registration and the amount of fee at the time of the enrollment process. Explicit laws such as the Trust Act 1882 have been announced, and application form has been certified and endorsed to recommend the procedure of registration.

Trust Registration process in India

For the trust registration under  ‘The Indian Trust Act, 1882”, the following documents are mandatory:

• A bill of water or electricity mentioning the address which needs to be registered.
• The identity proof of minimum of two members of the entity. The identify proof can be:
• Driving License
• Voter ID
• Aadhaar Card
• Passport
• After paying the fee for the registration process, it takes around 8 to 10 days for online trust registration as per the norms of the Indian Trust Act – 1882.
• Before the legal document becomes valid all around the country, the applicant has to submit a presentation at the corresponding registrar’s office.

Stepwise Registration Process for NGO Trust registration

• Step 1:

  Fill the NGO Registration Form, the applicant has to fill all the needed details in the simple application form.

• Step 2:

  Assemble the Prerequisites details, here you have to collect all the required documents as per the specifications. And it takes around 2 working days

• Step 3:

  Compile a trust deed, as per the documents provided by you for the registration process, a Trust deed will be compiled. This process will take around  4 to 5 working days

• Step 4:

  Trust Deed Registration process, the trust deed so compiled will be presented to the concerned local registrar for registration. It takes around 12-13 working days to complete this process.

• Step 5:

  Trust NGO registration certificate is granted. Once your Trust NGO Registration process got completed, you will receive the registered Trust Deed through courier.

Income Tax Formalities

After completing a valid trust registration, the very next step is to follow the 12A and 80G registration which make you eligible to avail the benefit of tax exemption. To file an application for the registration, Form 10A is used.
The total payment fee of the trust or establishment without providing impact to the provisions of Section 11 and 12 exceeds 50,000/ – every year, the report and statement or records of the trust or foundation for that respective year must be examined by a well qualified chartered accountant or some other qualified bookkeeper selected as an evaluator of companies. The report and the records of the audit should be filled in Form No. 10B as per Income-charge Rules, 1962 and said review records and report must be equipped along with the return of income.

Must know things before going for Trust Registration

Private Vs Public Trust

In India, Private Trusts are determined and governed by Indian Trusts Act, 1882, whereas public trust controls all its operations and functions by themselves exclude in the state of Maharashtra as Bombay Public Trusts Act, 1950 regulates and governs the functioning and operation of public trusts.

Number of Trustees

There is no definite maximum limit for the number of trustees but at least two trustees are mandatory to file the trust foundation registration. The trust deed should mention all the details and  arrangement regarding the administration of the trust along with the strategy and method or procedure which has to be followed for delegating or removing the members

Trust Deed

Trust registration cannot be complete without drafting this important document called a trust deed. It mentions the purpose of the formation of the trust. The document also comprises all the details of its beneficiary and describes the power and rights of trustees. Minimum two witnesses are needed during the trust deed signing process.

Tax Benefit

After completing the registration process, public trusts can avail the exclusive right and benefits offered by the government. Public trusts can also avail the advantage of tax exemption.

Step 5:

Online charitable trust registration certificate is granted. Once your Trust NGO is registration process got completed, you will receive the registered Trust Deed through courier.