Trust Registration – Benefits, Process, Documents

Indian Trust Act 1882 defines the Trust as an organization where the owner (trustor) decides to transfer the right of his property to a second person called trustee so that the third person (beneficiary) can take the benefit out of it.

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What is a Trust?

Parties in a Trust – Trustor, Trustees, Beneficiary

Eligibility Criteria for Trust Registration

Process of Trust Registration

Documents Required for Trust Registration

Overview of Private Limited Company Registration

A Private Limited Company is a privately maintained small business existence, which is one of the highly recommended means to start a business in India. The Companies Act 2013 governs private limited company registration in India.

While, minimum 2 shareholders are required to start a private company, while the higher limit of members are 200 as per the Companies Act, 2013. If a private limited company faces financial risk, its shareholders are not subject to sell their personal assets, i.e. they ought to have limited liability.

  • A registered private limited company increases the credibility of your business. A registered private limited company increases the credibility of your business. A registered private limited company increases the credibility of your business.
  • Help owners from personal liability and protects from other risks and losses.
  • Draws more customers
  • Ease in obtaining bank credits
  • Offers limited liability to preserve your company’s assets
  • Greater funds supplement and more attractive stability
  • Enhance the potential to grow big and expand

Starting a private limited company offers many advantages. Some of them are as follows:

Limited Liability
The responsibility of the members of a private limited company is restricted to their share only as the private limited company is a separate legal entity.
Separate Legal entity
A private limited company is a separate legal entity which posses all the rights to sue or to be sued. It acts an artificial person which can buy a property on its own name.
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NGOs are non-government organizations that are only engaged in carrying out philanthropic activities. An organization carrying out a trust will also carry out similar activities.
A trust cannot be closed if the operations are carried according to trust management. However, if there are any forms of disqualification on the shareholders, trust can be closed. An application for closing the trust must be made.
Yes, it is mandatory to register a trust. The trust must be registered with the registrar of trust. While registering religious trusts is not compulsory, it is advisable to register all forms of trust to avoid any legal issues.
Trustor is a person/ individual who creates the trust. The trust is created for another person known as the beneficiary. The trustee has the responsibility of managing the trust for the beneficiary.
Civil and Criminal remedies can be taken against the beneficiary for the breach of trust. These actions can be taken by the trustor as well as the beneficiary himself.

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