A trust is a legal entity that allows individuals or organizations to transfer their assets or property to a trustee, who manages and distributes them for the benefit of designated beneficiaries. In Pakistan, trusts are governed by the Trusts Act, 1882, and are registered with the Registrar of Trusts in the relevant province. Here is a step-by-step guide on how to register a trust in Pakistan:
Choose a name for your trust:
The first step in registering a trust in Pakistan is to choose a unique name for your trust. The name should not be similar to any existing trusts or entities, and should not violate any trademarks or copyrights.
Define the objectives of the trust:
The next step is to define the objectives of the trust. The objectives should be specific and clearly stated, and should be in accordance with the Trusts Act, 1882. For example, the objectives of a charitable trust may include providing education, healthcare, or relief to the poor.
Identify the settlor and trustee(s):
The settlor is the person who creates the trust by transferring their assets or property to the trustee(s). The trustee(s) are responsible for managing the assets or property of the trust and distributing them for the benefit of the beneficiaries. The settlor and trustee(s) can be the same person or different individuals or organizations.
Prepare the trust deed:
The trust deed is a legal document that outlines the terms and conditions of the trust, including the objectives, powers and duties of the trustee(s), and the rights and obligations of the beneficiaries. The trust deed should be prepared by a qualified lawyer and should be stamped and signed by the settlor and trustee(s) in the presence of two witnesses.
Obtain a non-objection certificate (NOC):
In some cases, the relevant government authority may require a NOC from the local district government or the concerned department before registering the trust. This is to ensure that the trust is not involved in any illegal or unethical activities.
Submit the application for registration:
The final step is to submit the application for registration of the trust along with the following documents:
Original and copy of the trust deed
Non-objection certificate (if required)
Two passport-sized photographs of the settlor and trustee(s)
Proof of identity and address of the settlor and trustee(s)
The application should be submitted to the Registrar of Trusts in the relevant province along with the prescribed fee. The Registrar will verify the documents and issue a certificate of registration if everything is in order.
It is important to note that once a trust is registered, it must file annual tax returns and comply with other legal and regulatory requirements. Failure to do so can result in penalties and legal action.
In conclusion, registering a trust in Pakistan involves several steps, including choosing a name, defining the objectives, identifying the settlor and trustee(s), preparing the trust deed, obtaining a non-objection certificate (if required), and submitting the application for registration to the Registrar of Trusts. It is important to consult a qualified lawyer and comply with all legal and regulatory requirements to ensure that the trust is legally valid and protected.