Starting a non-profit or planning asset protection requires a robust legal framework and in India, this often means establishing a Trust. Navigating the legal formalities, from drafting a comprehensive Trust Deed to securing crucial tax exemptions, can be complex. Praman Advisors Private Limited is your expert partner, leveraging AI-driven efficiency and seasoned professional guidance to make your Trust Registration journey smooth, compliant and quick.
Overview:
A Trust is a legal arrangement where the founder (Settlor) transfers property or assets to a group of individuals (Trustees) to be managed for the benefit of specified beneficiaries or for a charitable purpose.In India, Trusts are broadly categorised as:-
- Public Charitable Trust: Formed for the benefit of the general public (e.g. for education, relief of the poor or religion). This is the primary vehicle for NGOs and is often governed by state-specific Public Trust Acts or the general law.
- Private Trust: Formed for the benefit of specific individuals (e.g. family members). These are governed by the Indian Trusts Act, 1882.
Trust Registration is the formal process of recording the Trust Deed with the local Sub-Registrar's Office, granting the Trust its legal identity and enforceability. For public trusts, this is the foundational step towards achieving key benefits like tax exemption.
Benefits:
Registering your Trust, especially with the strategic support of Praman Advisors, unlocks numerous advantages for your social or financial objectives:-
- Legal Recognition and Credibility: A registered trust is a legitimate legal entity. This significantly enhances its credibility with government bodies, donors and the general public, which is vital for securing grants and partnerships.
- Tax Exemptions (12A & 80G): For Public Charitable Trusts, registration is a prerequisite to apply for Section 12A (Exemption of Trust's income from income tax) and Section 80G (Allows donors to claim a deduction on their donations). Praman Advisors provides end-to-end support for these critical applications.
- Eligibility for Funding: Only a legally registered and compliant trust is eligible to receive grants, government funding and Corporate Social Responsibility (CSR) funds under the Companies Act, 2013.
- Asset Protection and Management: Assets placed under the Trust are legally separate, offering protection from personal liabilities and ensuring they are managed as per the Settlor's objectives for the long term.
- Perpetual Succession: The Trust's existence is independent of its founders or trustees, ensuring the continuity of its mission and asset management.
Documents Required:
While specific requirements may vary slightly by state, Praman Advisors ensures you have a comprehensive and accurate checklist:-
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Document Category
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Key Documents Required
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Trust Instrument
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Draft Trust Deed (on non-judicial stamp paper of prescribed value).
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Identity Proofs
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PAN Card and Aadhaar Card (or Passport/Driving License/Voter ID) of the Settlor and all Trustees.
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Address Proofs
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Proof of the Registered Office Address (e.g. utility bill not older than 02 months or rent agreement).
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Consent & Others
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Passport-size photographs of the Settlor and all Trustees. No-Objection Certificate (NOC) from the property owner, if the office is rented.
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Process to Apply:
Praman Advisors simplifies the complex multi-step legal process into an easy, digital-first experience:-
- Initial Consultation & Assessment: You connect with our expert team to discuss your goals (charitable or private). We guide you on the best structure and name clearance.
- Drafting the Trust Deed: Our legal experts draft the comprehensive Trust Deed, ensuring it is compliant with the Indian Trusts Act and respective state laws.
- Procuring Stamp Paper: We advise on and facilitate the process of getting the Deed printed on non-judicial stamp paper of the appropriate value as per your state's Stamp Act.
- Physical Submission & Registration: The Settlor and two witnesses physically visit the local Sub-Registrar's Office to sign and register the Trust Deed.
- Obtaining the Certificate: Upon successful submission and verification, the Sub-Registrar issues the Registered Trust Deed copy and the official Registration Certificate.
- Post-Registration Compliance: We immediately proceed with applying for the crucial PAN Card for the Trust and initiating the application process for 12A and 80G registration with the Income Tax Department.
Documents Required:
The total cost and time for Trust Registration are comprised of official government charges (which vary by state) and professional service fees.
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Component
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Nature of Cost
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Estimated Timeline
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Stamp Duty
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Government Fee (Varies by state, depends on the property value vested in the Trust).
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Included in the initial stage.
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Registration Fee
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Government Fee (Paid to the Sub-Registrar's Office, state-specific).
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Included in the initial stage.
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Professional Fee
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Praman Advisors’ transparent service charges. (Contact us for a personalised quote).
Manju Laur: 📞 +97119 94042
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N/A
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Overall Timeline
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Registration: Typically 05-10 working days from the date of final Deed drafting and stamp paper procurement.
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Post-Registration (12A/80G): Can take an additional 01-03 months due to Income Tax Department processing.
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Note: Timelines are indicative and subject to the workload and efficiency of the respective State Sub-Registrar's Office. Our experts constantly follow up to ensure the fastest possible processing.
