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Formation of trust and registration of Trust as per Indian Trust Act. A easy way to understand how the trust is registered and operated. There is no complicated law words to drive your brain.
1. Trust is created with a document named Trust deed.
( Example Model Trust Deed which may be shaped to registered with a stamp duty paper in the Registrar office as per the Registration Act.)
2. Trust is created by the Founder (author or settler) with the trust of Trustees (who are the body of Trust)
3. Trust shall be created under irrevocable nature.
4. Trust deed consists of objects of the trust, Operation of Trust, Trustee information, Trustee powers, rights, duties and liabilities.
5. There are some procedures in creation of a trust deed. Charted accountants (Auditors) and Lawyers (Attorney) shall help you for creation of Trust deed. After creation of Trust deed, That organization TRUST shall be registered with the Registrar or Sub-registrar office as per the laws relevant to the specific states.
6. After the registration of trust, you shall get the copy of the registration from the Registrar and you shall apply for PAN card, and you have to apply for proper Income tax registration with Income tax department ( Here the 12 A plays the role).
7. After you have properly got the Income tax certificate for the Trust (12A), you can also apply for tax exemption certificates like 80g, 35ac and so many other forms of income tax exemption as per the objects of your trust and as per the applicable rules.
8. A trust shall be a public charitable trust or Private trust. Public charitable trust is able to raise funds from public to serve the social causes of the nation.
9. A trust must be registered whether with movable or immovable properties.
10. Trust should be registered with a "Registered office address of the trust" with proper landmarks.
11. A Trust shall be registered by the founder only with the minimum of 2 members.
So in this way you can understand how to form a trust.
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