Overview of Trust Registration

What is the Trust Registration Procedure?

The following steps are involved in the Trust registration procedure–

Choose an Appropriate Name

The first step in registering the trust is to choose a suitable name for the trust. An applicant must consider whether the proposed name falls within the restricted list of names as defined by the Emblems and Names Act of 1950.

Creating a Trust Deed

The Trust deed must be drafted in order for the Trust to be registered. A trust deed is a document that contains all of the important registration information, and it must be presented to the Registrar at the time of registration.

Choosing Trust Settlers and Trustees

The next step is to choose the Trust’s settlor and trustees. However, there is no stipulation regarding the number of settlers/authors. A Trust must also have a minimum of two trustees in order to be formed.

Preparing the Memorandum of Association

In order to register a trust, it is necessary to draught the Memorandum of Association, which serves as the Trust’s charter.

Payment of the Required Fees

The next step is to pay the Trust registration fee.

Obtaining a Copy of the Trust Deed

After submitting the paperwork, the applicant can pick up a certified copy of the Trust Deed from the registrar’s office within one week.

Trust Deed Submission to Registrar

Submit a certified copy of the Trust Deed to the local registrar after obtaining one. The Trust deed must be submitted with photocopies that have been properly attested.

Obtain a Certificate of Registration

After submitting the Trust Deed to the registrar, the registrar preserves the photocopy and returns the original registered copy to the applicant within seven business days, together with the certificate.

What Penalties Can Be Imposed for Breach of Trust Registration Compliance?

Penalties, Both Civil and Criminal

In the event of a breach of trust, the Beneficiary may face legal and criminal penalties. The Indian Penal Code 1860, Sections 405 to 409, deals with the specific provisions surrounding criminal breach of trust.

Number of Tax Deduction Account Application

The Trust or Institution should apply for a tax deduction account number in form 49B of the Income-Tax Rules to the Assessing Officer or the prescribed authority as soon as the trust or institution is registered, and quote the number on all challans for payment of sums under section 200, on all TDS certificates, and on all returns delivered under section 206. In the event that this is not done, section 272BB imposes a penalty of Rs. 10,000/-.

Failure To Provide an Income Return

The Act imposes a penalty for failure to file an income tax return. If the certificate for the tax deducted at source is not provided with the return of income due to the payer’s failure to provide such certificate, the return of income will not be considered defective. However, the certificate must be delivered within two years of the conclusion of the evaluation year.

BIZ Advisors Process for Trust Registration

Please follow the steps outlined above to legally and securely incorporate a Trust Registration and reap the rewards of higher-quality charitable work. Our business specialists will be at your disposal to provide advice on Trust Registration and its compliance in order to ensure the smooth operation of your NGO in India. Professionals in the business world will help you plan smoothly and efficiently at the lowest possible cost, ensuring that the process is completed successfully.

To avoid many of the potential problems that lurk within Trust Registration and to fully comprehend the requirement, it is recommended that an attorney with “NGO experience” be hired. To begin the process, you will need to provide some basic information. Once all of the information is submitted and money is received, the Attorney will begin working on your request.