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Trust Registration
Trust Registration

Trust Registration In Srinagar

WHAT IS A TRUST IN SRINAGAR?


In Srinagar, a trust is a corporation that acts as a trustee or agent of trusts and agencies. A trust company may be independently owned or owned by an entity which specializes in being a trustee of several kinds of trusts.

A trust is a legal agreement where owner of trust transfer the property to a trustee along with the declaration of that the property should be held by the trustee for the beneficiaries of the trust.

The object of the trust is to ensure the flawless transfer of the trustor’s assets among the beneficiaries as per the clauses mentioned in the trust deed.

A trustee, selected by the owner, is liable for administering the Trust & finally distributing his/her assets to the designated beneficiaries selected by the owner when the Trust is set up. Heir, family members, or charity are some common beneficiaries of the Trust in India.

Trusts can be promoted to reduce taxes, simplify or avert the probate process & safeguard assets.

Some common characteristics of trusts incorporated in Srinagar under the Charitable Trust Act 1957 are:

  • Has a board of at least two trustees;

  • Must have charitable purposes;

  • Have its trustees make the major decisions;

  • Is set up under a trust deed which outlines how it operates;

  • Has more limited entities or member involvement than incorporated societies;

  • Its assets can be used to pay its debts, but if it is incorporated and trustees have acted responsibly, they are not to be personally liable;

TYPES OF TRUSTS IN SRINAGAR, INDIA

  1. PRIVATE TRUST IN SRINAGAR: Private Trust refers to a legal organization created for the benefit of its members or individuals other than a public or charitable purpose. It is formed for the financial benefit of one or more beneficiaries who are known to the Trustor. Private Trust does not have a charitable purpose, and its benefits are available to designated beneficiaries only.

  2. PUBLIC TRUST IN SRINAGAR: A Public Trust essentially benefits the common public at large. Unlike private trusts, public trusts do not regulated by the Indian Trusts Act and are formed to serve a charitable or religious purpose. Such Trust follows the general law, which is in effect for the time being.

DOCUMENTS REQUIRED FOR THE REGISTRATION OF TRUST IN SRINAGAR INDIA


Following are the necessary documents to register a trust in Srinagar, India:

  • Identity proof of Trustor and Trustee (Aadhar Card, Passport, Voter Card, Driving License)

  • PAN Card

  • Passport Size Photo of Trustor and Trustee

  • Address proof of the registered office of the trust (electricity bill, water bill)

  • No Objection Certificate (NOC) signed by the owner

  • Trust deed containing the following details:

    • The object of the trust

    • Details of the Trustee and Trustor (Id Proof, Address Proof, Occupation, Email Address, Mobile Number and Designation)

    • Total number of the trustees

    • Proposed name of the trust

    • Trust’s registered office address

PROCESS OF TRUST REGISTRATION IN SRINAGAR, INDIA

  1. SELECT AN APPROPRIATE NAME

    The first step in trust registration in Srinagar, is to select a name for the proposed trust. The names proposed should be unique and does not go against any provisions relating to intellectual property rights and also should not come under the restricted list of the names as per the provisions of the Emblems and Names Act, 1950.

  2. PREPARATION OF TRUST DEED

    In Srinagar for a Trust, the applicant is required to prepare the Trust Deed on a stamp paper. The value of the stamp paper is of a specific percentage of the total value of the property of the Trust. Furthermore, this percentage value of the Trust varies from state to state. A Trust Deed is a legal evidence of the existence of the Trust. It contains the rules and regulations of the Trust. This document also contains the laws regarding the removal, changes, or addition of the Trustees to the Trust.

    The trust deed contains the following clauses:

    • Memorandum of Association: In Srinagar, Memorandum of Association(MOA) states the relationship between the Trust or and the Trustees and also specifies the objectives for which a Trust is formed by the members. MOA of a Trust should contain the addresses, names, and occupations of all the members along with their signatures.

    • Funds: This clause validate the trust to accept donations, contributions and subscriptions from any person, government body or any charitable entity, in the form of cash, immovable assets in Srinagar.

    • Investments: This clause states the conditions for the lawful and effective administration of the Trust’s fund. This clause also mention conditions for effective allocation of the additional funds that are not in use and could help in generating extra income in the form of investment in Srinagar.

    • Power of the Trustees: This clause states the responsibilities of the trustees. Such as, opening the bank account in the trust’s name/ appointing, removal of the employee’s of trust/ investing additional funds in trust securities / accepting gifts, donations from individuals or sources on trusts’ behalf in Srinagar.

    • Accounts and Audit: This clause commands the trustees to administer the book of account on a regular basis. Further, it also states the requirement for account auditing that should be conducted by the certified professional chartered accountant in Srinagar.

  3. SUBMISSION OF TRUST DEED TO THE REGISTRAR IN SRINAGAR

    After the receipt of the copy of the Trust Deed, the members are required to submit the same along with attested photocopies of all the necessary documents with the office of the local registrar in Srinagar.
    Furthermore, the Trustor should sign on every page of the copy of the Trust Deed. Also, it is mandatory for all the Trustor as well as the two other witnesses to be physically present along with their identity proofs at the time of Trust Registration in Srinagar.

  4. CERTIFICATE OF REGISTRATION IN SRINAGAR

    After the completion of all the formalities, a Certificate of Registration will be issued to the Trust. Such a Certificate of Registration will be issued within a minimum of seven working days in Srinagar.

TAX BENEFITS FOR TRUST IN SRINAGAR, INDIA

12A REGISTRATION

Trusts that get itself registered with 12A, can avail the benefits of getting exemption from paying income tax on their surplus income or profit in Srinagar.

DOCUMENTS FOR 12A REGISTRATION:

  • Trust Deed, Registration Certificate of the Trust

  • Certificate of Incorporation and copies of MOA and AOA of Trust

  • Form 10A

  • PAN Card of the Organization

  • Bank Statement of previous three year.

BENEFITS OF 12A REGISTRATION IN SRINAGAR

  • The main benefit of 12A registration is the income tax exemption benefit concerning income utilization in Srinagar.

  • Organization registered under Section 12A, is eligible to receive grants from Government, Abroad and various private sectors in Srinagar.

  • Entities registered under 12A are also eligible for availing benefits under Section 80G in Srinagar.