A Trust is the easiest way to start a non-governmental organization or NGO. A Trust works with the objective of the eradication of poverty, to provide education to the underprivileged, and offer medical relief to the general public. The trust also works in the areas of the promotion of the fine arts, scientific and literary activities. A trust is considered irrevocable, which means it cannot be amended or terminated without the permission of the court. Our team at ACE ALLIANCE can help you create a deed of trust, rental agreement, which will help you obtain your trust registration certificate. In India, there are no specific laws to govern a public Trust, however, some states like Maharashtra and Tamil Nadu have their own Public trust Act.
ONLINE TRUST REGISTRATION PROCESS
Our team of tax and legal experts at ACE ALLIANCE will help make your trust registration online process a simple exercise. For the first step towards registering the trust, the founder of the trust/or the Author of the Trust/or the Settlor of the Trust must draft a document that outline the following
- The objectives of the trust
- Guidelines the trustees must follow to achieve the objectives and goals of the Trust
The document that contains all these details is called a Trust Deed. It is also called a Deed of Trust. Then an application for registration of the trust must be moved before the Registrar of Trust along with the Trust Deed. The jurisdiction for registration of the Trust is the area in which the registered office of the Trust is located.
CONTENTS OF THE TRUST DEED
The trust deed is the primary and the most important document of the trust which contains the following points
- The name of the trust
- The registered office of the trust
- The area of operation of the trust
- The objectives of the trust
- The details of the Author of the Trust
- The Corpus and Assets of the Trust
- The details of the Board of Trustees
- The quorum of the Board with their qualification, terms and tenure
- The powers and functions of the Managing Trustee and other Trustees
- The closure and amendment of the trust deed and the applicability of the Act
DOCUMENTS REQUIRED FOR TRUST REGISTRATION
- The completed drafted trust deed
- The proof of registered office documents such as the rental agreement or ownership document
- The identity proof of the Founder of the Trust
- Two witnesses
- The constitution of the Trust
- The Trust is made up of the Board of Trustees which is made up of the Author/Founder/Settlor of the trust, Managing trustees and other Trustees
- The quorum of the Board of Trustees must not exceed a maximum of 21 members
REASONS TO REGISTER A TRUST
As per the Public Trust Act of all the states in India, the registration of a Trust is mandatory if it involves a charitable purpose, or when there is a transfer of immovable property, in the name of the said trust. Only a registered trust is eligible for tax exemptions that are provided under Section 12 A and 80G of the Income Tax Act. The registration of a trust also adds more credibility to the trust since it takes public money in the form of donations.
TRUST COMPLIANCE REQUIREMENTS
After a trust is registered it must do the following:
- Obtain a PAN card
- The Book Keeping and Accounts
- File the annual IT returns
- Obtain a Shops and Establishment License in the case of employment
- Obtain a Professional Tax Registration, if applicable
- Obtain a GST registration, if applicable
APPLICABILITY OF TAX EXEMPTION
There is a general belief that a Trust does not need to pay tax as they work towards the welfare of the common public at large. That is not true. A Trust, like any other legal entity, has to pay tax. In order for a Trust to be exempted from Tax, it must obtain certification for the said exemptions, such as Section 12 A, 80G etc. from the Income Tax Authorities in India.
Once you get in touch with us at ACE ALLIANCE with your request to register a Trust we will start the process. After our team receives all the details, our expert team of lawyers and attorney will create the Trust agreement sample and send it across for your reference within 2- 3 business days. The price you pay for these services will includes three rounds of iterations. Therefore, if you need any changes done to the Trust agreement, our team of lawyers at ACE ALLIANCE will do the needful and then help you with the online Trust registration process.