Prerequisites for Trust Registration

To qualify for trust registration, the following conditions must be fulfilled: Minimum Number of Founders: Trust must be established by at least two or more individuals. Compliance with the Indian Trusts Act of 1882: The trust must be formed in accordance with the provisions specified in the Indian Trusts Act of 1882. Disqualification Status: None of the parties involved should be disqualified under any prevailing law in India. Conformity with Legal Objectives: The objectives of the trust must not contravene any existing laws in India. Fair and Just Conduct: The trustee must conduct their activities in a fair and just manner. Alignment with Public Interest: The formation of the trust should not be contrary to public interest or any other applicable laws. Non-Harmful Activities: The activities carried out by the trust must not cause harm to any individual. Consistency with Stated Objectives: The trust activities should align with the objectives outlined in the trust deed. Appropriately Drafted Trust Deed: The trust deed must be drafted appropriately, reflecting the genuine interests of the parties involved in forming the trust. Validity of Multiple Objectives: If the trust has more than two purposes, both purposes must be valid. If one goal is reasonable and the other is invalid, trust cannot be formed. Components of a Trust Deed A trust deed stands as a pivotal document delineating essential details and provisions governing a trust. It encompasses the following key clauses: Operational Period: Specifies the duration or term for which the trust will remain in operation. Registered Office Address: Indicates the official address of the trust’s registered office. Geographical Scope: Defines the geographical area or region where the trust will conduct its activities. Goals and Objectives: Outlines the goals and objectives that the trust aims to achieve. Details of the Settlor: Provides information about the person establishing the trust (settlor) and details of the assets or property being transferred to the trust. Board of Trustees Information: Includes details about the board of trustees, encompassing their membership, qualifications, terms, and tenure. Roles, Responsibilities, and Powers of Trustees: Clearly defines the roles, responsibilities, and powers of the trustees. Amendment Procedures: Outlines procedures for amending the trust deed and provisions for the closure or termination of the trust. Legal Compliance Assurance: Ensures that the trust operates in accordance with relevant laws and regulations.