Trust Registration in Bangalore

A trust is an agreement where trustees manage property for the benefit of beneficiaries or charitable causes. Public trusts usually involve properties like land and buildings. Trusts can be private or public: private trusts are governed by the Indian Trusts Act and used for private purposes, without tax benefits. Public charitable trusts, however, serve charitable purposes for the public.

Trusts are established through a vital document called a "Trust Deed." This deed outlines the main goals, management methods, and key details about trustees' appointment or removal, trust control, etc. It must be clear and precise about the trust's objectives. Signed by trustees and settlers in the presence of two witnesses, the deed's value corresponds to the property's worth and must be executed on non-judicial stamp paper.

Common characteristics and the process of trust registration:

  • A trust which needs Trust registration in Bangalore online typically requires at least two trustees, but there's no upper limit to their number. The maximum number is specified in the trust deed. The group of trustees is collectively called the board, overseeing the trust's operations.
  • The board members hold different roles, like managing trustee or chairperson, and manage the trust's charitable purposes. They are responsible for significant decisions and operations.
  • A trust is established and obtained online Trust registration in Bangalore, via a trust deed outlining its functioning. Compared to other organizations, trust involvement might be more limited.
  • Trustees usually aren't held accountable unless specified in the deed. The trust can be legally closed unless otherwise stated in the deed.
  • To avoid tax payments, trusts need separate registration with the IRD. Trustees are lifelong members, specified in the deed, and their appointment doesn't involve an electoral process.
  • Trustees can't draw remuneration from the trust's common fund but may receive reasonable compensation for professional services. Bank profits, like interest, can't be distributed among trustees.
  • Changes to the trust deed can be made via a supplementary trust deed. Focusing on and understanding the deed's objectives is crucial for smooth functioning. The trust deed is important for Trust registration in Bangalore.
  • No substantial difference exists between a foundation and a trust. During registration, the settlor and two witnesses need to be present before the sub-registrar, who verifies their identity.

Things to be mentioned in the trust deed:

  • Trust name.
  • Trustees' names and addresses.
  • Settler's name and address (the one establishing the trust).
  • Registered office address of the trust.
  • Trust's rules and regulations.
  • Trust objectives.

Application for trust registration:

To get online Trust registration in Bangalore, apply to the local authority overseeing that region. The application should mention trustees' names, succession methods, etc. It must be signed by the applicant before the registrar, sub-registrar, superintendent, or the regional officer at the authorized registrar or charity commissioner's office. This application is submitted along with the trust deed.

Two additional documents, a consent letter and an affidavit, must be attached when applying for registration.

Documents required for trust registration:

  • Identity proof of trustees, witnesses, and settlor.
  • Certified charitable trust deed.
  • Application for trustees' incorporation as a board, signed by a majority of trustees.
  • Statutory declaration: If trustees hold property for other trusts, a resolution is needed for approval, accompanied by a trustees' declaration.
  • Registered company address.
  • House tax receipt or water bill as proof of the trust's registered office.
  • Signed authority letter.