How do I register a trust? And what is the process for registering a trust?
Registering of trust in India requires defining of its charitable objects such as education, healthcare, poor relief, conservation of environment, women empowerment or social welfare. Next step involves selection of trustees and deciding the registered office of the trust. Preparation of a trust deed that specifies name of the trust, its objects, details of the settlor and trustees, appointment of new trustees, powers and duties of the governing body, usage of funds, bank transactions and dissolution terms is the next step in the process. The trust deed is to be written on the right non-judicial stamp paper depending on the state laws and signed by the settlor, trustees and witnesses. In case of Delhi state trust registration the completed trust deed along with other necessary documents has to be sent to the sub-registrar of the jurisdiction of the office. Such documents include identity and address proofs of settlor and trustees, photographs, proof of the registered office, ownership proofs or a no objection certificate of the premises owner and registration fee. Upon verification of the documents and signing the trust deed before the registering authority, the trust gets registered and is issued with registration record or certified deed. Registration itself does not result in any tax exemption for charities. Having obtained the trust registration, the trustees must obtain the permanent account number and proceed further with applying for 12a or 12ab registration for income tax exemption of the eligible charitable income. The trust might apply for 80g approval to allow donors to get tax deductions for qualifying donations. In case depending on the activity and sources of funds, there might be needed other ngo compliance measures such as income tax filing, audits, donor reports, fcra registration for receiving foreign funds and charitable expenditure reports.