Skip to main content

Trust Registration

 WHAT IS A TRUST?



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 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 INDIA

  1. PRIVATE TRUST: 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: 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.                       

Comments

Post a Comment

Popular posts from this blog

How much time does it take to a Section 8 company registration online?

How much time does it take to a Section 8 company registration online? Registering a Section 8 company online, also known as a not-for-profit company, involves several steps that can vary in duration depending on various factors. Section 8 companies are formed primarily for promoting art, science, commerce, social welfare, religion, charity, etc., without the intent to earn profits. The process for Section 8 company registration online in India is governed by the Companies Act, 2013, and administered by the Ministry of Corporate Affairs (MCA). Understanding Section 8 Companies Section 8 companies are characterized by their nonprofit objectives. They utilize their profits, if any, solely towards promoting their objectives and do not distribute dividends to their members. These companies must be registered under Section 8 of the Companies Act, 2013, and need to adhere to specific compliance requirements set forth by the MCA. Steps Involved in Section 8 Company Registration Online 1. Obt...
Read more

Section 8 Company Registration Online Process In India

  A company is alluded to as a “Section 8” company when it is enlisted as a non-profit organization (NPO)/NGO, i.e., when it has the thought process of advancing expressions, commerce, instruction, charity, security of the environment, sports, science, inquire about, social welfare, and religion. The pay of an NPO cannot be utilized for paying out profits to the company’s individuals and has to be for the advancement of charitable goals. Such companies get a joining certificate from the central government and are at risk to follow to the rules indicated by the government. Definition of Section 8 Company – Companies Act, 2013 A Section 8 company is one whose objectives are to advance the expressions, commerce, and science, investigate, instruction, sports, charity, social welfare, religion, natural security, or other comparable objectives, concurring to the Companies Act. These organizations so also give their benefits to assisting their mission and do not pay profits to their share...
Read more

WHAT IS SECTION 8 COMPANY?

  NGO (Non-Government Organization) works for non-profit/ charitable purposes. In India, there are 3 legal forms of NGO i.e. Trusts, Societies and Section 8 Companies. An NGO established as Section 8 companyunder the Companies Act, 2013 is governed by the Ministry of Corporate Affairs (MCA).A Section 8 Company is the same as the Section 25 Company under the old Companies Act, 1956. Section 8 Company is incorporated for the promotion of commerce, art, science, education, research, sports, charity, social welfare, religion, protection of environment or any such other object. It is formed for the welfare of the society and it intends to apply all its profits in promoting its objects. It forbids the payment of dividend or income to its members. Therefore, Section 8 Company is created by those who do not wish to earn profit from the business but rather they want to dedicate themselves to improve a certain segment of the society. What are the benefits of Section 8 Company? Tax benefits N...
Read more