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What is Trust?

A trust is created by the Author, owner, settlor or trustor in the name of another person called trustee by transfer of movable or immovable property for the benefit of a third party or beneficiary.

Trusts are created either for the benefit of some individuals connected or related to the author or are created for the benefit for the public.

Private Trust

When trust is created for the benefit of some individuals connected or related to the author the Trust is called Private Trust. The profits of the activities of private trust goes for the benefit of the beneficiaries mentioned in the trust.

Public Trust

When the Trust is created for the benefit of general public then the Trust is called Public Trust or Charitable trust where it can receive donations after registration of 12 A and 80 G.

Thus, a Public trust works similar to an NGO with an objective of the service of general public or deity.

Work area of a public Trust

The work area of a public trust is all over India and a public trust may enter in to contract, buy or transfer any kind of property or perform any activity anywhere in India.

What are Benefits of Trust Registration

Easy Registration and less compliances.

Exemption from taxes for Public Trusts

Trust may work in all the states of India.

A Public trust works like an NGO.

Effective management and control.

Can receive donations after registration of 12 A and 80 G.

Procedure of Trust Registration

Drafting of constitution of the trust.

Application for Trust Registration.

Presence of Settlor, trustee along with 2 witnesses before the Registrar.

Issue of the Registered document.

Time Required for Trust Registration

A trust is registered generally within 5-15 days of application.

Documents Required for Trust Registration

• Constitution of Trust
• ID and Address proof of the Settlor and Trustee.
• Photographs
• Address proof of Registered address of Trust- Rent agreement and NOC with Address proof required if the registered address of Trust is at rented premises.