Trust Registration in Bangladesh
A complete guide toTrust Registration in Bangladesh in 2025
Our firm provides professional advice and legal solutions pertaining to the establishment and management of trusts, guaranteeing that your goals are fulfilled in complete accordance with Bangladeshi legislation. An outline of the main components of trusts as defined under Bangladesh’s Trusts Act, 1882, is provided below, along with information on how we may help you navigate these complicated legal issues.
A Trust: What Is It?
A trust is a formal agreement in which one or more people, referred to as trustees, keep and administer assets on behalf of other people, referred to as beneficiaries. A formal transfer of property from the Trust’s originator, known as the Author, to the Trustees establishes a trust, with particular duties associated with the ownership of the property. A trust is defined as an obligation attached to property ownership that results from confidence placed in and accepted by the owner for the benefit of another under Section 3 of the Trusts Act, 1882. In order to safeguard the interests of both Trustees and Beneficiaries, our company makes sure that this procedure is carried out properly and in accordance with the law.
Important Elements of a Trust
A few key words in every trust must be understood:
• Author: The person who establishes the Trust and has faith in the Trustees.
• Trustee: The individual or organization charged with overseeing the Trust Property in line with the terms of the Trust Deed.
• Beneficiary: The person or organization that the trust was created for.
The assets kept in trust are referred to as trust property.
• Instrument of Trust: The formal agreement defining the terms, obligations, and conditions of the Trust.
In order to protect the interests of both Authors and Beneficiaries, our business carefully writes and constructs each Trust, guaranteeing clarity on the duties and responsibilities of all parties.
Section 6 of the Act states that a trust is created when its creator states, with reasonable assurance, in words or deeds:
(a) a desire to establish a trust,
(b) the trust’s objective,
(c) the recipient and
(c) The property held in trust.
Trust Types
There are two primary categories of trusts:
Private trusts are established to benefit a particular person or group of people. They may unintentionally help the public, even when their primary purpose is to serve private interests.
population or Charitable Trusts: These are set up to serve larger social goals like welfare or education, benefiting the general population.
Our knowledge of both public and private trusts allows us to provide solutions that are specifically designed to satisfy our clients’ needs, whether they be charitable, family, or personal.
The goal and establishment of a trust
A trust needs to have a clear and legal goal, such supporting charity activities, medical care, or education, among other things. A trust may be void due to unclear or illegal goals. We help our clients clearly define the goals of their trust and make sure that all legal requirements are met, including the execution and registration of the trust deed. The legal basis is provided by the Trust Deed, which describes the goals, assets, and duties of the Trustees. To finish the procedure, we also make sure that the Trust Property is transferred in accordance with applicable legislation.
Establishing and registering a trust:
It is not necessary to get approval from any governmental or regulatory body in order to establish a trust. The main prerequisite is that the trust deed be registered with the relevant sub-registrar’s office.
The sort of property involved determines the registration process for a trust. Section 5 of the Trust Act of 1882 states that a trust involving movable property does not need to be registered. On the other hand, a trust involving real estate must be registered. Consequently, the following procedures need to be taken in order to register a trust deed:
Step 1: Choose the Correct Authority to Register a Trust Deed
Like a land document, a trust deed needs to be registered at the Sub-Registrar’s office in the area. According to Section 28 of the Registration Act of 1908, the trust deed for immovable property must be registered in the Sub-Registrar’s office in the jurisdiction where the immovable property is located. On the other hand, a trust deed for moveable property can be recorded in the location of the trust’s registered office or where the trust’s operations will be conducted.
Step 2: Calculate the Registration Fees
The fees for registering a trust deed are listed in the Gazette under No.-S. R. O. No. 254-Law/2014, which was published by the Ministry of Law, Justice, and Parliamentary Affairs’ Law and Justice Division in compliance with Section 78 of the Registration Act, 1908. Article A (1) of the Gazette states that a 2% ad valorem fee, with a minimum charge of BDT 100, is applied if the trust’s worth is less than BDT 5,000. A registration fee equal to 2% of the trust’s worth is assessed for trusts with a value greater than BDT 5,000. The stamp duty that applies to trust deeds is specified in Schedule I of the Stamp Act of 1899. A trust deed’s stamp duty is 2% of the consideration, as stated in Schedule I, serial number 64.
Step 3: Put the Trust Deed in writing.
Both the trustee and the author/creator must sign the trust deed in front of the registering officer. Before the registration officer, the trust’s authors must also sign and put their fingerprints in the register book. In front of the registering officer, the final page of the trust deed must also be signed by two witnesses.
Step 4: Send in a Certified Copy Application
The author or originator of the trust must fill out and sign a certain form, which is then delivered to the Sub-Registrar’s office in order to receive a certified copy of the registered trust deed.
Section 52(1)(b) of the Registration Act, 1908 mandates that the registering officer provide a receipt to the individual presenting the document after they have fulfilled all the requirements and turned it in. On the day of the trust declaration, all pertinent officials must be in front of the sub-registry office.
Step 5: Functioning in Bangladesh as a Trust
A receipt and a copy of the trust deed will be provided by the registering office official upon receipt of the assembled trust documents. To get the original registered trust deed, this receipt needs to be brought to the relevant Sub-Registrar’s office.
The trust officials will be able to carry out the trust’s regular operations and open a bank account in the trust’s name at any bank in Bangladesh with these documents.
After everything is ready to be filed with the Land Registry Office, the registration procedure typically takes seven to ten working days. However, based on particular conditions, this time frame might change.
Step 6: Applying for registration under the 1860 Societies Registration Act:
The Societies Registration Act of 1860 permits the registration of a trust with a benevolent purpose. To register as a society, submit an application to the Registrar of Joint Stock Companies and Firms (RJSC) along with the draft articles and memorandum of association. According to the Societies Registration Act of 1860, a minimum of seven (seven) individuals must be members or trustees in order to be registered. A trust establishes a legal body if it is registered under the Societies Registration Act of 1860.
The Trust must be charitable and registered with RJSC Bangladesh in accordance with the Societies Registration Act, 1860, in order to apply to the NGO Affairs Bureau (NGOAB) or Micro Credit Regulatory Authority.
The following are involved in this process:
Step 1: RJSC issues a name clearance.
Step 2: Apply to RJSC with the deed of trust, registration clearance letter, and all other necessary paperwork.
Step 3: Government fee payment
Step 4: The law enforcement organization, such as the National Security Intelligence and Special Branch of Police, does a security check.
Step 5: The relevant authorities inspect, monitor, and review the NGO. (if necessary)
Step 6: The authority will issue a registration if you are pleased.
Depending on how complicated the situation is, this process could take one to two months.
Demise of a Trust
When a trust’s goal has been accomplished, it is no longer legal, or it is otherwise unachievable—for example, when the beneficiaries are no longer alive—it is terminated. We ensure compliance with all legal requirements by providing legal monitoring during the Trust’s existence and helping to properly dissolve it when needed.
Benefits of Creating a Trust
Among the many benefits of a trust are its freedom in administration and management, as well as its capacity to set social or charitable goals free from onerous legal obligations. In order to guarantee that assets are used for their intended purposes, trusts also provide efficient asset management and protection.
Obstacles and Legal Aspects
Trusts have specific restrictions even though they provide flexibility. Board members cannot receive dividends from trust profits, and trustees are held personally accountable for any breaches of trust. Trusts must also register with the NGO Affairs Bureau in order to accept donations from overseas. To overcome these obstacles, our firm offers full legal services and strategic assistance, making sure that all legal and regulatory needs are fulfilled.
(i) Beneficiaries: The trust can be set up to benefit certain, identified people (fixed beneficiaries) or it can be discretionary, meaning the trustee has the power to choose the beneficiaries whenever they see appropriate.
The beneficiaries are the ones who ultimately gain from the Trust. To guarantee that their rights are upheld, they must be named explicitly in the Trust Deed. A trust may be declared void if its beneficiaries are not specified. In order to enable Beneficiaries to fully benefit from the Trust, we make sure that its structure precisely outlines and protects their rights.
(ii) The Trustee’s Role and Responsibilities: The trustee is legally the owner of the trust property and is required to manage it with the same care and caution that a normally prudent person would use over their own property. The trustee is required to maintain accurate and transparent records of the trust assets and is personally liable for any breaches of the trust.
Legally speaking, trustees must administer trust property in line with the author’s instructions or, in some cases, with the beneficiaries’ approval. Their responsibilities include protecting the Trust’s assets, making sure they are managed properly, and with reasonable care, just like they would if they were their own. Our company offers trustees continuous assistance, making sure they fulfill their responsibilities while shielding them from possible legal risks, particularly with regard to property management and fiduciary duties.
(iii) Trustee Compensation: A trustee can only receive compensation if it is specifically included in the trust deed.
(iv) Character of Trust Property: The assets that make up the trust property may be movable (personal property) or immovable (real estate).
(v) Foreign Donations: In accordance with the Foreign Donations (Voluntary Activities) Regulations Act, 2016 (FDRA), the trust must obtain approval from the NGO Affairs Bureau (NGOAB) through a procedure called Foreign Donation Registration (FD Registration) before it can accept or use foreign donations.
(vi) Accountability and Transparency: Trustees must keep accurate and thorough records of the assets under trust. The right to request and get access to these accounts belongs to the beneficiaries.
(vii) Liability for Breach of Trust: If the trustee violates the trust, he is responsible for compensating the beneficiary or the trust property for any losses incurred. This is unless the beneficiary deceived the trustee into breaking the trust, or the beneficiary, who is capable of entering into contracts, consented to the breach or later acquiesced in it after being fully informed of the case’s facts and his rights against the trustee. A civil lawsuit may be filed against a trustee who violates the terms of the Limitation Act of 1908 in order to recover damages.
How TRW law firm Can Assist Bangladesh in Registering Trusts
We at TRW are ready to assist you with the establishment, management, and dissolution of trusts, making sure that your interests are completely safeguarded and that your trust effectively fulfills its intended function. We provide custom legal solutions that are suited to your unique requirements, ensuring that every facet of your trust complies completely with all applicable laws and rules.
Why should you hire TRW law firm to open your trust:
Expert Consultation: We evaluate your company’s needs and help you meet the requirements specified by the many regulatory organizations involved in the trust registration procedure.
Document Preparation: In order to guarantee adherence to the relevant regulations, our staff helps to gather and prepare all required documentation.
Application Management: From submission to approval, we manage the complete application process, making sure every step is carefully completed.
Constant Follow-up: To monitor the status of your application and quickly respond to any questions or extra needs, we keep in close contact with the regulatory agencies.
Inspection Preparation: To make sure your activities and infrastructure adhere to all legal requirements, we assist you in getting ready for any regulatory inspections.
Lobbying with officials: To expedite the registration procedure, we help government officials communicate effectively.
By selecting TRW law firm, you can concentrate on growing your trust operations while confidently navigating the intricate regulatory landscape.
It takes several processes and strict regulatory compliance to secure a trust registration and operation in Bangladesh. The TRW legal office is dedicated to helping you at every stage, making sure that your application procedure runs smoothly and successfully.
