How to Register a Trust in Rajasthan: A Complete Step-by-Step Guide (2024)

Registering a trust in Rajasthan is a significant legal step for those looking to manage family assets, charitable initiatives, or religious endeavours. Whether you are setting up a private trust to safeguard family wealth or establishing a public charitable trust, understanding the process, legal requirements, and associated costs is crucial. This detailed guide will walk you through the process of trust registration in Rajasthan, including the fees for trust registration in Rajasthan, trust registration cost in Rajasthan, and the documents required for trust registration in Rajasthan.

Also Read: NGO Registration in Rajasthan

What is a Trust and Why Should You Register One?

A trust is a legal arrangement where one party (the settlor) transfers assets to a trustee, who then manages those assets for the benefit of another party (the beneficiary). Trusts can be categorized into private trusts and public trusts.

Private Trust:

This type of trust is usually created for family welfare or to manage family estates. The Indian Trusts Act, 1882 governs private trusts in India.

Public Trust:

Public trusts, such as charitable trusts, religious trusts, or educational trusts, are created to benefit the public or a specific community. These are regulated under the Rajasthan Public Trusts Act, 1959.

While private trusts are not always required by law to be registered, public trusts must be registered to ensure transparency, accountability, and legal recognition. Registering a trust grants it the ability to hold property, gain tax exemptions, and ensures its credibility with donors and authorities.

Trust Registration in Rajasthan- A step by Step Guide

Drafting the Trust Deed: Essential Legal Elements

A Trust Deed is the foundation document for creating a trust. It outlines the terms and conditions of the trust, its purpose, and how it will be managed. A trust must be created by a written instrument—this could either be a formal Trust Deed or a public declaration.

Here’s what a well-drafted Trust Deed must include:

1. Name of the Trust: The trust must have a unique name that reflects its purpose. It should not conflict with other registered organizations, trademarks, or business names.
2. Settlor: The person who establishes the trust and transfers assets to the trustee. The settlor must clearly express their intentions in the Trust Deed.
3. Trustees: At least two trustees are required for a valid trust under the Indian Trusts Act. The deed should define the role and powers of trustees.
4. Beneficiaries: These are the individuals or entities that benefit from the trust. In the case of a public trust, beneficiaries could include a broad section of the public.
5. Trust Fund: The Trust Deed should define the assets or property being transferred to the trust, also known as the corpus.
6. Purpose of the Trust: The objectives of the trust should be clearly stated. These could be for charitable, religious, or educational purposes in the case of public trusts.
7. Powers of Trustees: Trustees need to have specific powers, such as managing the funds, investing in assets, and distributing income.
8. Duration of the Trust: Define whether the trust is intended to operate perpetually or for a specified duration.

Notarization and Execution of the Trust Deed

Once the Trust Deed is drafted, it needs to be executed properly to be legally binding.

1. Signatures of the Settlor and Trustees: The Trust Deed must be signed by the settlor and trustees in the presence of at least two witnesses.
2. Notarization: The document must be notarized by a Notary Public to authenticate the signatures and ensure the trust’s validity.
3. Stamp Duty: The Trust Deed must be executed on non-judicial stamp paper of appropriate stamp duty and a trust registration fee Rs. 100. Other Charges Rs. 1,000 for keeping a certified copy of trust deed with the sub-registrar.

Trust Registration Process: Sub-Registrar or Charity Commissioner

The process of trust registration in Rajasthan differs based on the type of trust—private or public.

Private Trust Registration (Sub-Registrar):

For private trusts that involve immovable property, registration must be done at the local Sub-Registrar office. The steps include:

1. Submission of the Trust Deed: Present the signed and notarized Trust Deed along with necessary documents (identity and address proofs of the settlor and trustees).
2. Verification: The Sub-Registrar verifies the documents to ensure everything is in order.
3. Registration: Once verified, the trust will be officially registered, and the Sub-Registrar will issue a certified copy of trust deed as a token of registration.

Public Trust Registration (Charity Commissioner):

Public trusts established for charitable, religious, or educational purposes must be registered with the Charity Commissioner of Rajasthan (Devsthan Vibhag) under the Rajasthan Public Trusts Act, 1959 in addition to registering trust deed with sub-registrar.

1. Application: Submit an application along with the Trust Deed, identity proofs, and details of the trust’s objectives.
2. Inspection and Verification: The Charity Commissioner may conduct an inspection to verify the charitable nature of the trust and its assets and may require the trust to publish a public notice with regard to trust registration.
3. Registration Certificate: Upon successful verification, the Charity Commissioner issues a Certificate of Registration, granting the trust legal recognition.

Fees for Trust Registration in Rajasthan

The fees for trust registration in Rajasthan can vary depending on the type of trust being registered. Here’s an overview of common costs associated with the process:

For Example, Trust Registration Costs in Jaipur costs:

A trust while applying for registration of trust deed with sub-registrar has to execute the trust deed on a non-judicial stamp paper. The value of the stamp paper is of a certain percentage of the total value of the property of the Trust. The percentage of value for the purpose of stamp duty varies from state to state. In addition, Rs. 100 is payable as Trust registration fee and other charges applicable Rs. 1100 for keeping a certified copy of Trust Deed with the Sub-Registrar.

Documents Required for Trust Registration in Rajasthan

To ensure a smooth registration process, make sure to have the following documents required for trust registration in Rajasthan:

1. Trust Deed: The finalized and notarized Trust Deed.
2. Identity Proof: Copies of PAN, Aadhaar cards, voter IDs or passports of the settlor and trustees.
3. Address Proof: Utility bills, bank statements, or property documents confirming the address of the settlor and trustees.
4. Photographs: Passport-size photographs of all trustees.
5. Registered Office Proof: Documents proving the trust’s office location (lease/rent agreement or property papers) along with utility bill like electricity bill.

Post-Registration Steps

Once the trust is registered, you must complete a few additional steps:

1. Apply for PAN: Apply for a Permanent Account Number (PAN) for the trust for tax purposes.
2. Open a Bank Account: Open a bank account in the name of the trust, with the Certificate of Registration and Trust Deed.
3. Tax Exemptions: Charitable and religious trusts can apply for tax exemptions under Section 12A and 80G of the Income Tax Act, 1961 once PAN is received.
4. Apply for Darpan Registration: After getting PAN, Trust can apply for Niti Aayog Registration on the Darpan Portal of the Government of India.
5. Annual Return Filing: Public trusts must file annual returns with the Charity Commissioner, detailing their income, expenses, and activities.

Taxwink: Your Trusted Partner for NGO Taxation and Compliance Services

At Taxwink, we specialize in providing expert taxation and compliance services for NGOs. Whether you're setting up a new trust or already managing an established one, we ensure that your organization meets all legal requirements and maintains full compliance with Indian tax laws.

Our team of legal and taxation experts assists NGOs with a wide range of services, including:

• Trust Registration: Helping you navigate the complex process of trust registration in Rajasthan and across India.
• Tax Exemptions: Guiding you through the application process for Section 12A and 80G exemptions, helping you minimize tax liabilities.
• Annual Filings: Ensuring your trust complies with annual return filings and stays up-to-date with regulatory changes.
• Financial Management: Offering advice on effective financial management, governance, and compliance for NGOs.

By choosing Taxwink, you can ensure your trust runs smoothly, stays compliant with the law, and fulfills its charitable objectives without unnecessary tax hurdles. Reach out to us today for expert support with trust registration and ongoing taxation compliance. 

Conclusion

Registering a trust in Rajasthan requires careful attention to legal details, from drafting the Trust Deed to following the required steps for trust registration with the Sub-Registrar or Charity Commissioner. Understanding the documents required for trust registration in Rajasthan, fees for trust registration in Rajasthan, and compliance with the Indian Trusts Act, 1882 and the Rajasthan Public Trusts Act, 1959 will ensure that your trust is set up correctly and operates smoothly.

Whether you are looking to establish a private trust or a public trust in Rajasthan, following these steps will help you achieve legal recognition and enable the trust to fulfil its intended purpose.

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