Charitable Trust registration service

Myths and Facts: A Trustee  Need to Know About Trusts


How to start trust? What is trust? Trust registration process, check out the full details here!



There are some questions in our thinking about trust. If someone wants to start a trust, what they do, how to get started, so here is the solution we share about the trust.

Let’s basically get started. A trust is a legal relationship in which the legal ownership of a property is entrusted to an individual or legal entity with a fiduciary duty to hold and use it for the benefit of others. Throughout this article, we provide complete information about the “trust registration process”. You need to know about trusts and charitable trusts, what trusts are, how they work, the trust registration process, and more.

What is trust?

According to Article 3 of the Indian Trust Act of 1882, a trust is one person (pioneer) who is another person (trustee) (third party beneficiary) when the property is accompanied by / owned by an obligation. It means putting a trust in your hand. ). In other words, a trust is a legal means that allows a third-party trustee to manage and manage the assets of the trust fund on behalf of the beneficiary. Trusts dramatically increase your options for managing your assets, whether you’re trying to protect them from taxes or transfer them to your child.


Non-governmental organizations are registered as trusts in accordance with the Indian Trust Act of 1882. It rarely takes 3-7 days to register a trust from the date the application is submitted. A minimum of 3 members are required to form a trust. One of the main advantages of forming a trust is that it is easy to register with simple regulations.

The purpose of trust is social benefit and charity. Sai Ngo & Business Consultancy helps build trust in the most feasible and effective way. Our team will help you to approve all your mandatory legal obligations and carry out all the required documents.

Trust  works viablely

• Social issues

  • • Education,
  • • Medical remedies
  • • Advances in other objects in utilities.
  • •Health
  • Minority awareness
  • • Tribal development
  • Women’s empowerment
  • • Road safety
  • • Consumer awareness program
  • • Art & Culture


Type of trust

Trusts fall into two categories.

1. Public

2. Private


Public trust means that the beneficiaries include the general public or a significant portion. Public trust is further categorized as follows:

• Public interest trust

• Public religious trust

Public Trust is known as Non-Profit Charitable Organization or Non-Governmental Organization (NGO).


However, since the laws of public trusts in India are described for charitable and religious trusts, “Charity and Religious Trusts Act, 1920, Religious Funds Act, 1863, Charitable Funds Act, 1890, Duke of Bombay. It falls under the rules of the Trust Law, 1950.

Note: Central law does not apply to public trusts. However, various states have passed that requirement and management function.

Why create a public trust?

The main reasons for building public trust from two types of trust are:

• Public trusts are relatively popular because they are easy to register and manage.

• Public trusts can take advantage of government exemptions under the Income Tax Act.

In addition, charity trusts have three requirements.

1. A declaration of trust by the settlers, which detains the settlers,

2. Separation of certain property by settlers, resulting in deprivation of ownership, and

3. Item description, what is the beneficiary’s property?

The property is considered after it has been transferred to the trust.

In addition, if you violate public trust, you may file a proceeding against either the Proponent President or two or more persons who are interested in trust.

1. Dismissal of trustee,

2. Appointment of a new trustee,

3. To keep the property in the trustee

4. Instruct the exiled trustee to occupy the property of the trust.

5. Also direct the audit report annualy



Private trust

An individual trust is a trust in which the beneficiary is an individual or a family member. Private trusts are further categorized as follows: – –

  1. Private Special Trust / Private Discretionary Trust: In this case, both the beneficiary and the share are determined.
  2. When the share with either of the two beneficiaries is uncertain.
  3. But faith can be a mixture of both. Such trusts are called public-private trusts.
  4. Valid private trust content

Here are some guidelines for creating a private trust:

1. Real estate pioneers need to declare some real estate set aside for the benefit of the beneficiaries.

2. According to the trust deed, you need a trustee to manage the property for the benefit of the beneficiary. Settlers may also be trustees of the same trust.

3. There must be a beneficiary or beneficiary who will benefit from the property of the colonist (trust).

4. Properly separated trust properties.

5. In addition, you need to clearly specify what you trust.



What is an NGOS?

The NGO represents a Non-Governmental Organization. The word NGO comes from the United Nations (UN) and is often used to refer to non-governmental and non-profit organizations. Today, we need to develop the poorest sections of society. This requirement can be met through a non-profit organization.

 What are the types of NGOS?

 There are two types of non-profit NGOs. One is trustworthy and the other is community. The third type of NGO is a for-profit NGO that is usually registered under the Companies Act.

 Do I need to register a trust or community?

Both public trust can do social work as an NGO. The social work you do does not really affect whether you register an NGO as a community or as a trust. The main difference between trust and society lies in the governing bodies of these two types of organizations.

 Where should I go to register for an NGO?

Trusts are usually registered at the local registrar’s office in your area. It is the office that registers the sale and purchase of land. The education community is registered with the local education community registration office. If you do not know where you are registered, it is a good idea to go to an office such as a sub-registrar / tesilder and ask for an NGO registration place.

 How can you build a “Trust”?

Trustees may be established for official purposes in terms of Section 4 of the Indian Trust Act 1882. The fund must have a written document and signed by a trustee or trustee. Trust can also be built on will. There is no clear form of trust. The purpose of the trust must be clear and concise.

What is the purpose of building trust?

It is not possible to build trust for the following purposes under Article 4 of the Act. Illegal purpose. Contrary to the provisions of the Indian Trust Act of 1882 and the laws made under it; if the trust has provisions such as fraud. If the trust intends to cause loss or damage to assets Q3. Who can build trust? Answer: -The following may establish a trust under Article 7 of the Indian Trust Act 1882. Anyone who can enter into a contract may form a trust. With the permission of the community court, you can build trust on behalf of minors

 Do I need to have office equipment to start an NGO?

No, you can also start an NGO in a rental area. A certificate of contention (NOC) from the owner of the rental property is required.

 Can a public servant be a trustee?

Yes, government employees can be trustees of Indian trustees.

 Can an NRI be an Indian trustee?

There are no clear boundaries for the NRI to be the basis of Indian confidence.

 Can a trustee get a salary from a trust fund?

You cannot get compensation just because you are a trustee. However, if you have a trusted professional career, you can get the right compensation in the trust fund. Here are some common sense words. That means that if you withdraw from rewards above market value, it is illegal and inappropriate.

 How can an NGO register?

There are three ways to register an NGO, each with different registration procedures and regulatory obligations.

Trust under the Indian Trust Act of 1882

Organization under the Public Registration Act, 1860

 How do NGOs make money?

NGOs are primarily non-profit organizations that work to achieve specific goals. NGOs tend to raise money from a variety of sources, including foreign funding, large corporations, government debt and HNI.

 How can I check the status of a trust registration online?

• Use the NGO DARPAN website to check the status of online NGO registration.


Thanks & Enjoy

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