Trust Registration
Trust Registration in India
a Trust can be form in India –
- as a Public (Charitable) or Private Trust
- with Jurisdictional Registrar or Charity Commissioner
- under Indian Trusts Act, 1882 with minimum 2 members
Our Pricing Starts @ Rs 25,000/- + 18% GST | 20-25 days Processing time
Trust formation in India at a glance
A Trust is registered and governed by Indian Trust Act, 1882. Income Tax Act, 1961, defines a Trust as “An arrangement by which property is handed over to or vested in a person, to use and dispose off for the benefit of another person”. Creation of a Trust can be broadly classified into two methods namely
- Public Trust (Charitable Trust); and
- Private Trust formation.
Simply, a trust is legally created body, wherein property is transferred from its owner to the trust for lawful purpose. Usually we hear the word trust for religion or charitable purpose; however, there is no such restriction. There are even sports academies also can be registered as trusts.
In India, even many societies are registered as a public charitable trust. Often, you’ll even hear of the wealthy creating private trusts; this is done because of the tax-efficient nature of the trust (because dividend distribution tax or minimum alternate tax do not apply). It is the easiest way to transfer than making a will.
However, it does much involve more effort to register a trust than to write a will. Take the help of FinTax Consultants to form your Trust. Our FinTax Service is convenient and hasslefree.
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Applicability of Professional Tax in India
Prepare Documents
Prepare all the required documents as per guidelines of Trust Registration issued by Registrar or Charity Commissioner under the Trust Act. Decide the name of the Trust.
Draft Trust Deed
Prepare a Trust Deed. Here professional's help is required.
File Application with Documents
File application along with required documents and Trust Deed with jurisdictional Registrar or Charity Commissioner.
Filing process is Party Online in few states, other wise the whole process is offline and need to visit Authority.
Pay fee and Stamp duty
Make the payment of Govt. fees by Online/Cash/any other mode as the Registering authority accepts.
A Stamp duty as per rate prescribed in the state shall be payable on assets value vested with the Trust.
Registration Certificate
Once the name and Trust Deed approved, the Authority - Registrar or Charity Commissioner, issues Registration Certificate. This complete process takes atleast 25 to 90 days by the authority in normal course.
