Characteristics of trust registration:
- The trust is governed by the relevant State Trust Act or the Public Trusts Act
- A trust is established by a trust deed on a non-judicial stamp paper of a certain percentage of the value of the trust's assets (stamp duty varies from state to state).
- Trust deeds include the goals and objectives of trust formation and the management position of the trust.
- The composition of the board changes not primarily by appointment but by election.
- It is difficult to change the budget of trust deed and only the conciliator can correct it.
- The Charity Commissioner has more power than the Society to interfere in the affairs of the Trust
- Dissolved of trust is not ease
Step 1: Name application:
An application is filed to be reserving the name of the company with the registrar of companies. Applicant is allowed to provide two names and one re-submission
Step 2: Name Approval / Rejection:
On receipt of the application, CRC (Central Registration Centre) may either approve or reject the application.
Step 3: settlers and trustees:
Selecting a trustees and settlers in the process of trust registration, there is a minimum requirement of two persons and there is no limit for maximum number of persons most importantly the settlers should be an Indian resident.
Step 4: draft a trust deed, MOA
In the deed should contain the rules and administration guidance will be mention on the trust deed, most importantly it will be prepared on the stamp paper.
Memorandum of association is mandatory to create a trust, it includes the details of the trust members and also it has its objectives.
Step 5: trust deed submission with registrar:
After obtained the certified copy of trust deed, should submit along with that copy of documents with the local registrar. The settler has to sign on every single page of the trust deeds photocopy
Step 6: receiving the registration certificate:
All the formalities have been fulfilled; the registration certificate will be issued by the registrar.
Proposed Trustees and settlers:
- PAN Card
- Aadhar Card.
- Passport Size Photo
- Proof for Address – Bank Statement or Telephone Bill or EB or Mobile Bill (Latest)
Register Office documents:
- If the Office is rental, rental agreement is inevitable
- Electricity bill (Not more than two months old required to be submitted)
- Occupant needs to provide a No Objection Certificate from landlord to operate the business (NOC) if not rented.
- Trust deed on stamp paper
- Proof of identity and address
- NOC from the landlord
- Registration copy of the property