29 Jul 2020, 14:20 — 3 min read
A Trust is a financial arrangement in which the founder of the trust transfers the trust property's legal title to a trustee to hold and manage for a third party in accord with the grantor’s intent. The beneficiary holds a beneficial title to the property. Trust can be of different types like private trust and public trust or charitable trust or religious trust etc. One or a team who would like to serve the people or who would like give to society can form a suitable Trust by registering the following procedure.
The person who would like to create/register a Trust is called Author or Settler, people who will be benefited by Trust are termed as Beneficiaries and the people who manage the day to day affairs named as Trustees.
Initially, the Author shall get the Trust Deed ready. There must be minimum 2 trustees and two witnesses with Aadhaar card photocopy. The Author can be one of the trustees. The Trust Deed shall be registered with the sub-registrar of the concerned jurisdictional Sub Registrar Office (SRO).
Once the registered Trust Deed is ready, we need to apply PAN Card, open a Bank Current Account, Apply for 80G Exemption, apply for registration under Foreign Exchange Management Act, 1999 (42 of 1999) for receiving Foreign Funds / Contributions etc.
Preparation of books of accounts Following all applicable Accounting & Tax Laws Need to file IT Returns within time every year filing returns under FEMA (Foreign Exchange Management Act) etc.
It is a standard format available with any draftsman, or you can also prepare it on your own.
Commonly, Trust Deed can be printed on 100 rupees non judicial stamp paper, or it can be franked. Stamp duty varies from state to state.
It can be anything, and you can start with even 1000 rupees.
Typically there are three types of charges. Like user charges, registration charges & document charges. These charges are nominal and may vary from state to state.
Also Read: New definition of MSMEs & Udyam registration
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Posted byAnil Kumar Ganga
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