(1) A person
who intends to establish a trust shall make an application, setting
out the following matters, to the Registrar:
(a) Value and details of the property held for the trust,
(b) Beneficiary, and benefit and facility to the beneficiary,
the terms and limitation thereof,
(c) If the trust is to be established for any particular
period, matter relating thereto,
(d) Other necessary details.
(2) In making an application pursuant to sub-section (1),
the following documents shall also be submitted with the
application:
(a) Memorandum of incorporation of the trust,
(b) Trustee's name and photocopy of the deed relating to
his or her consent,
(c) Photocopy of the deed, if any, executed for the
establishment of the trust,
(d) Photocopy of a reliable deed relating to the trust
settler's identity, and, in the case of the trust settler
being a body corporate, certified copies of the
documents relating to the incorporation of the body
corporate and of the decision by such a body corporate
in relation to the establishment of trust,
(e) Receipt of payment of the fees chargeable by law for
the registration of trust.
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Explanation: For the purposes of this Chapter:
(1) 'Registrar' means the authority provided for by
law for the registration, supervision and
liquidation of trusts, and this term also includes
the Land Revenue Officer in the concerned
district if such authority is not so provided for.
(2) 'Trustee' means the person who is responsible
for the operation and management of a trust
property.
(3) Notwithstanding anything contained in sub-section (1),
if any person has, by way of his or her oral behavior, conduct or a
testamentary gift or will, provided for the operation and
management of a property in which he or she has right, ownership
and possession as a trust, the trust shall be deemed to have been
established by such behavior, conduct or will.
Provided that in the case of a property requiring registration
for the transfer of its title in accordance with law, a deed pertaining
to such transfer has to be registered.
(4) If a foreign person intends to establish a trust, the
person shall make an application, upon fulfilling the procedures as
referred to in sub-sections (1) and (2). A foreign person may be the
founder of the trust to be so established.
Provided that a foreign person is not allowed to establish a
trust for the accomplishment of the object referred to in clause (l) of
sub-section (2) of Section 315.
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(5) At least one-thirds of the trustees of a trust established
pursuant to sub-section (4) shall be Nepali citizens having
permanent residence in Nepal.