The first step in the trust registration process is to choose a distinctive name for your trust that does not violate or infringe on another person’s identity or trademark.
Deed Preparation
The settlor (author of the trust deed), the trustee, and the beneficiary are the parties to the trust deed that must be drafted.
Registration of a Trust
A trust deed is a legal document that must be registered with the registrar of trusts in the jurisdiction.
PAN, TAN, and Bank Account Numbers
Following the trust’s registration, the next step is to apply for a PAN and TAN number, as well as to create a bank account.
Private trusts are governed by the Indian Trusts Act, 1882, whereas public trusts are governed by the Bombay Public Trusts Act, 1950, except in Maharashtra and Gujarat, where public trusts are administered by the Bombay Public Trusts Act, 1950
The number of trustees in a trust has no upper limit, however a minimum of two trustees is always required for registration. The trust deed should include provisions for the trust’s management as well as the method for nominating and removing members.
The trust deed is the most significant document in a trust since it specifies the key goals for which the trust was established. Aside from the trust’s principal objectives, it also specifies the trust’s beneficiary and trustee’s powers. In the presence of two witnesses, the deed is signed.
A private trust does not have access to government privileges or tax benefits, whereas public trusts can take use of certain tax exemptions after registering with the IRS. We have a lot of experience acquiring the appropriate income tax registration in order to qualify for a tax exemption or benefit.