Registration of Charitable Trust – Everything to Know

The Registration of Charitable Trust happens with some integrated steps. The incorporation of a charitable trust mainly takes place for the purpose of education for the unprivileged or to provide them with general facilities. The Indian Act defines a trust-based onto the reasonable set of words and actions carried out. 

What are Charitable Trusts?

Charitable trusts are various institutions which provide help people who need help. These type of institutions provide maximum benefit to society. 

The trust which forms is completely independent. The main of these trust is to provide public service and benefit as a whole. A Charitable Trust is for those people who are unable to survive on their own. On their own, these trust helps people to stand strong and on their feet. 

Charitable trusts are incorporated under another company or organisation for the purpose to offer education, general and basic needs. And sometimes these trusts have their individual identity as a completely legal person. 

This is the prime reason why they can make their own decisions. Based on the individuality they hold, these trusts can form their own network. 

By the means of community service, these trusts can engage themselves in various business. They can even provide affordable services to the person who is willing to accept the said. These trusts can be made to make sure that the old people, animal, orphans, homeless are all staying protected. 

Registration of Charitable Trust:

For the Registration of Charitable Trust in India, here are the steps which follow ardently. 

  1. The first step is to make sure that choosing a name for your trust is the prime thing. This is the basic step which requires in Registration of Charitable Trust. The proposed name should not suggest any kind of patronage related to the State Government of the place. Under the Emblems and Names Act, the name should not match the list. In case, the registrar refuses to register your company name, you can always file in for an official case.
  2. Determining the settler or the author for your trust. Registration of Charitable Trust in India depends on the trustee and their acceptance through legal means. But there is no defined activity that the trustee has to do. In most of the cases for the Registration of Charitable Trust, there is only just one person who acts as the trustee. It does not depend on the person’s capability and what they can do. Anyone can become a trustee or donate money to the trust.
  3. Preparing a memorandum and a list of rules and regulations for the trust. You have to create a trust deed and place some clause on the name of the trust.
  • Name clause of the trust. 
  • Settler and the trustee of the trust. 
  • Registered office clause. 
  • Object clause and beneficiary. 
  • General body member clause. 

The element present in the trust deed:

  • Name and the address of the settler or the author of the trust. 
  • Name and the address of the trustee. 
  • Purpose of the trust. 
  • The Objective of the trust. 
  • Rules and regulations of the trust. 
  • Tenure of the trustee which might need to be specified. 

Understanding everything before registration

Before the registration of the name, the trust deeds should be stamped and approved. The trust deed approves only when the deed is stamped by a local registrar. 

Signature of the trust and even the person who is undertaking is approved during the time of stamping. Signature of the two witnesses is needed when it comes to stamping as well. As said before, the registration takes under anyone. 

The settler doesn’t have to eligible under any circumstance. They can take the undertaking of the trust as a whole.