Trust Registration

Complete guide to Trust Registration assistance

What is a Trust?

A Trust is a legal arrangement where a person (Settlor) transfers property to another person or group (Trustee) to be used for the benefit of third parties (Beneficiaries).

Trusts can be classified into:

Private Trusts

Created for the benefit of specific individuals.

Public Trusts

Established for charitable or religious purposes.

Process for Trust Registration

1
Define the Trust Objectives
Clearly outline the purpose of the trust (charitable, educational, medical, etc.).
Decide on the type of trust (Private or Public).
2
Select the Trustees and Settlor
The Settlor is the person who creates the trust.
Trustees are responsible for managing the trust's activities.
A minimum of two trustees is required for a public trust.
3
Choose a Trust Name
The trust name should be unique and should not conflict with existing entities.
4
Draft the Trust Deed
The Trust Deed is a legal document that outlines the objectives, powers, and rules of the trust.
Key components include:
- Objectives and Activities of the Trust
- Powers and Duties of Trustees
- Procedure for Addition/Removal of Trustees
- Trust Property Details
5
Register the Trust Deed
The Trust Deed must be signed by the Settlor and Trustees in the presence of two witnesses.
Submit the deed to the Sub-Registrar Office in the relevant jurisdiction.
Pay the applicable stamp duty (varies by state).
6
Authority Review & Outcome
If the application is verified and approved, the relevant Sub-Registrar may issue the Trust Registration Certificate through its authority process.
7
PAN & Bank Account Follow-up
A Permanent Account Number (PAN) is required for tax filing.
Open a bank account in the name of the trust.
8
12A & 80G Application Support (For Tax Exemptions)
12A Registration allows the trust to be exempt from income tax.
80G Registration allows donors to claim tax deductions on their donations.

Documents Required for Trust Registration

Trust Deed

Stamped and Notarized

ID Proof of Settlor & Trustees

PAN Card, Aadhaar Card, Passport, etc.

Address Proof of Settlor & Trustees

Utility Bill, Bank Statement, etc.

Address Proof of Registered Office

Electricity Bill, Rent Agreement, or Ownership Document

Photographs

Of Settlor & Trustees

NOC from Property Owner

If registered office is in rented premises

Timeline for Trust Registration

Complete Registration Process

10-15 working days

(Depending on document verification and the state's processing time)

Frequently Asked Questions

What is the difference between a Private Trust and a Public Trust?

A Private Trust is formed for the benefit of specific individuals or a closed group (like family members), while a Public Trust is established for public charitable purposes that benefit the general public or a significant segment of it. Public Trusts are eligible for tax exemptions under Sections 12A and 80G of the Income Tax Act, whereas Private Trusts generally don't qualify for these exemptions.

How many trustees are required to form a Trust in India?

For a Private Trust, even a single trustee is sufficient. However, for a Public Trust, most states require a minimum of two trustees. It's advisable to have multiple trustees to ensure continuity and proper management of the trust's affairs, regardless of the type of trust.

What are the tax benefits available for a registered Trust?

Public Charitable Trusts may submit applications for tax exemptions under Section 12A of the Income Tax Act, which can exempt qualifying trust income from taxation. Additionally, registration under Section 80G can allow donors to claim tax deductions on their donations to the trust. Private Trusts generally do not enjoy these tax benefits unless they serve qualifying charitable purposes.

Can a Trust own property in its name?

Yes, a registered Trust can own property in its name. The Trust Deed should clearly specify the initial trust property and the powers of trustees regarding acquisition and disposal of property. All property owned by the trust must be used in accordance with the objectives specified in the Trust Deed.

What is the validity period of a Trust in India?

A Trust can be established for a definite period or in perpetuity (forever). The duration must be clearly mentioned in the Trust Deed. Public Charitable Trusts are typically created in perpetuity, while Private Trusts may have specific duration clauses. The Indian Trusts Act, 1882, governs Private Trusts, while Public Trusts are governed by state-specific laws.