If you’re looking for a charitable trust registration, then congratulations. Firstly, for doing the good deed. Secondly, because this article will sort everything out for you. The sole purpose of a charitable trust is to help people. Furthermore, it can be to lift people out of poverty or empower women. Adding on, some charitable trusts also work to further religious practices. Thus, here’s how you can carry out the registration of a charitable trust in India:
Benefits Of A Charitable Trust
If you’re planning the registration for a charitable trust you’ll get the following benefits:
- Charitable trusts are entitled to perpetual existence and are exempted from laws against perpetuity.
- Partial or complete exemption from taxes is possible. The government has to approve such a move.
- Lastly, if the purpose of the trust is not possible to carry out there can be a change. The trustees with the help of a simple majority can choose to switch to another purpose. Although, the purpose must be as close as possible to the previous one.
Types Of Charitable Trusts
- Firstly, public charitable trust is a trust that serves a group of people mostly from a religious perspective. Furthermore, non-profit NGOs also come under this category. But, this category mostly consists of temples, churches and other holy places.
- Next, a private trust is where employees are paid and profits are made. The Indian Trusts Act 1882 governs such a trust.
- Firstly, for the registration of a charitable trust form a Trust deed. Although it’s not required everywhere it’s useful in the long run.
- Next, form a clear objective of the trust. It is very important to define the direction your trust is going to move in.
- Furthermore, draft clear ground rules to appoint the Author, Trustees and Beneficiaries.
- Also, gather address proofs of all the Author(s) and Trustees.
- If the trust has any property gather the documents to prove ownership.
- You’ll also need the address proof of the main office
- Lastly, apply for a Permanent Account Number (PAN) in the name of the trust.
Charitable Trust Registration Process (Private Trust)
- Firstly, form a document stating the type of trust you’re forming
- Further, submit the same document to a legal firm or a bank
- Moreover, make sure that the document consists of the names of the settlor, trustees and the beneficiaries. Also, it must have the list of properties the trust will hold.
- Most importantly, form the trust bye-laws. These will determine how your trust is going to be run.
- Next, open a separate bank account in the name of the trust.
- By this time you should get the PAN in the name of the trust.
- Lastly, the author of the trust has to indicate the following verbally or in writing:
- Firstly the intention behind starting the trust
- Followed by the purpose
- Mention the beneficiaries
- List any properties owned by the trust if they exist
- Lastly, if the author wants to transfer the trust property to the trustees or not.
- These activities will complete your registration for charitable trust (Private) under section 6 of the Indian Trusts Act 1882.
Registration For Charitable Trust (Public Trust)
- Firstly, the easiest way to form a public trust is through section 8 incorporation
- To start off, you’ll have to get the name of the trust approved.
- Also, you’ll have to get the DINs and DSCs for all the directors of the trust
- Next, you’ll have to apply for license and certificate of incorporation
- There’s no public trust registration application form. Thus, once incorporated you’ll have to apply for PAN and TAN
- Lastly, open a bank account in the name of the trust.
A lack of public trust registration application form makes things a tad bit difficult. But with Taxolawgy you can carry out charitable trust registration online.
Registration of a charitable trust is not easy. But, charitable trust registration online is really hassle-free. Legal registrations can be a headache at the least. No matter how good you want to do for the people you’ll always end up hitting some roadblocks. Be it the unexplainable legal terms or the lengthy procedures of government offices. But, you can make your life easy with just a few clicks. Taxolawgy offers to you the best experts on a wide array of matters. Connect with the best legal, financial and taxation experts online at Taxolawgy Online Services. Quick. Convenient. Online!