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TRUST REGISTRATION
Trust registration in India refers to the process of legally establishing a trust as a non-profit organization. A trust is a popular legal structure for entities engaged in charitable, educational, religious, or social activities. The primary objective of trust registration is to create a formal framework for the management of assets, funds, or properties for specific charitable or philanthropic purposes.
benefits of Registering a trust
Registering a trust in India has many advantages. Here are some important benefits.
Legal Recognition
Trust registration makes an organization official and gives it a special legal identity. This makes people see the organization as more trustworthy and allows it to follow the law.
Tax Exemptions
If a trust is registered, it can get tax benefits and exemptions. This means that if people or businesses donate money to the trust, they can get a tax deduction under Section 80G of the Income Tax Act. This is a way to encourage donations to the trust's cause. Also, if the trust makes money from doing charitable work, it might not have to pay income tax on it, as long as it meets certain requirements.
Funding and Grants
Trusts that are registered can get money from different places like the government, companies that want to do good things (corporate social responsibility funds), and groups that donate money from other countries. Some places that give money will only give it to trusts that are registered.
Easy Bank Account Opening
Banks want to see proof that the trust is registered before it can open a bank account for it. It's important to have a separate bank account for the trust because it keeps things clear and makes it easier to handle the money that the trust gets for its activities.
Publicity and Recognition
When you register a trust, it gets listed on government websites and directories. This makes it easier for people to find and support the trust. It can also help the trust get more recognition and support from the public.
Perpetual Existence
A registered trust can last forever, even if the people in charge change. This means the trust can keep doing what it's supposed to do without interruptions. It also allows the trust to plan and carry out its goals over a long period of time.
Enhanced Trust and Credibility
When a trust registers, it gains more trust from people who give money, people who get help, and other important people. This is because it shows that the trust is honest, responsible, and does things the right way. This can help the trust get more help and work with others more easily.
Legal Protection
Registered trusts have legal protection during any disagreements, which lets them stand up for their rights and interests if needed. They can make agreements, have possessions, and bring lawsuits in the name of the trust.
Greater Opportunities for Collaboration
Registered trusts have more chances to work with other organizations, both in India and globally. This working together can result in sharing knowledge, resources, and making a bigger difference in social issues.
Organizational Structure and Governance
To successfully register a trust, it is important to have effective procedures in place that ensure smooth operation. These procedures may include creating guidelines for decision-making and general management, which will benefit the trust in the long run.
How register a trust in India
You usually need to follow these steps to register a trust in India:
Drafting the Trust Deed
A trust deed is a legal document that outlines the trust's purpose, trustees, beneficiaries, and terms.
Identification of Trustees and Beneficiaries
Trustees are people or groups that control the trust, and beneficiaries are the ones who will benefit from it. You need to provide the names and identification information for both trustees and beneficiaries when registering.
Submitting an Application
Trustees are people or groups that control the trust, and beneficiaries are the ones who will benefit from it. You need to provide the names and identification information for both trustees and beneficiaries when registering.
Payment of Registration Fees
The government may charge you a fee for registering and processing your application.
Documents Required for trust registration
- Name of Trust.
- Aims and Objectives of trust.
- Minimum two member required.
- All members Aadhar card and pan card.
- Electricity bill of registered office of trust.
- Two passport size photographs of settler.
- Two witness with their Aadhar card and passport size photograph.
