Trust Registration in India begins with the drafting of a Trust Deed. Trust Deed is the primary requirement in the process of Trust Registration in India. Trust Registration is formed on a non-judicial stamp paper; every state in India has fixed its own rate on the stamp duty. The applicants are required to book an appointment with the office of sub-registrar once he/she is done with the preparation of Trust Deed.
It is essential for all the trustees of the Trust to appear before the sub-registrar on the date of appointment along with the Trust Deed and two witnesses.
What is a Trust?
A Trust is an arrangement where owner or trust or of Trust transfers the property to a trustee. Such transfer of property is done for the benefit of a third party. The property is transferred to the trustee by the trust or along with a proclamation that the property should be held by the trustee for the beneficiaries of the trust.
The Indian Trust Act 1882, provides for the provisions related to Trust in India. The Trust Registration in India is advisable for obtaining the benefits.
In India, Trust is classified into two categories:
Types of Trust in India
Public Trust
A Public Trust is the one whose beneficiaries include the common public at large. Furthermore, a Public Trust in India can be further subdivided into Public Religious Trust and Public Charitable Trust.
Private Trust
In India, a Private Trust is the one whose beneficiaries include individuals or families. Furthermore, a Private Trust in India can be subdivided into the following categories:
A Private Trusts whose beneficiaries and requisite shares both can be easily determined;
A Private Trusts whose both or either the beneficiaries or requisite shares cannot be easily determined.