REQUIREMENTS FOR REGISTERING A TRUST

A trust can be created by execution of a trust deed; there are two types of trust. A public trust
(charitable trust) is created for the benefit of the general public whereas a private trust is created
for the benefit of a particular group of individuals known as the beneficiary.

1. The first thing is to select a unique name for the trust, the proposed name should not
suggest any kind of patronage by the government of india or any other state and it should
not be under the restricted list of names as per the provisions of the Emblems and Names
act ,1950. There is no restriction in using the names that are already registered as trust in
the registrar office
2. Determining the settler (author of the trust deed), the trustee and the beneficiary. There is
no upper limit for the trustees in a trust, but a minimum of two trustees are always
required for registration. The trust deed should have provision concerning the
management of the trust along with the procedure of appointing or removing the
members.
3. Next thing is to prepare a memorandum of Association and Rules and Regulations which
is known as trust deed. The trust deed is to be executed on appropriate stamp paper, the
rate of stamp duty differs from state to state. The trust deed is the most important
instrument in a trust, it prescribes the main objectives for which the trust is set up. Apart
from the main objects of the trust, it defines its beneficiary and the powers of the trustee.
The deed is signed in presence of two witnesses.

4. The next step is to seek an appointment with the sub-registrar office having jurisdiction
based on the registered office of the trust, and the government registration fee is to be
paid after that.
5. On the appointed date the trust deed is presented before the sub-registrar where all
trustees need to be present along with two witnesses. The registration process is then
undertaken by the office of the sub-registrar, and the registered deed can be collected
after a week time.
6. After registration of the trust, the next step is to apply for allotment of PAN Number and
TAN and thereafter opening of a bank A/c.
 REQUIREMENTS FOR REGISTERING A TRUST

BY LAWS OF THE TRUST

1. Should mention each and every rule applicable to the trust, this includes sections of
Income Tax applicable, Indian trust act and other laws applicable to run ,manage and
implement the working of the trust.
2. Clearly mention the procedures and conditions that should be followed to open and
operate a bank account . These By laws are mentioned in the Trust Deed.
3. Proper procedure regarding the changes,removal and addition of thetrustees must be
established.
4. Without inclusion of By laws, Trust Deed is use less and incomplete.
5. Without a proper Trust Deed one might face issues in future like proving their trust’s
legibility.