Introduction to Trust Creation & Society Registration
Starting a non-profit organization in India usually begins with Trust Creation or Society Registration. These structures are commonly used for charitable, educational, religious, cultural, and social welfare activities.
Choosing the right structure is essential for smooth compliance, fundraising, tax benefits, and long-term governance. This Saving Mantra guide explains the step-by-step process for Trust Creation & Society Registration in India, covering eligibility, documentation, registration steps, and post-registration compliance.
Difference Between Trust and Society
| Particulars | Trust | Society |
|---|---|---|
| Governing Law | Indian Trusts Act, 1882 | Societies Registration Act, 1860 |
| Minimum Members | 2 Trustees | 7 Members |
| Governing Body | Trustees | Managing Committee |
| Area of Operation | Usually State-specific | State or National |
| Registration Authority | Sub-Registrar | Registrar of Societies |
When to Choose a Trust or Society?
- Trust: Suitable for long-term asset holding, family-managed charities, religious institutions
- Society: Suitable for member-driven organizations, educational and social initiatives
Step-by-Step Process for Trust Creation in India
Step 1: Decide Trust Name & Objectives
- Select a unique name
- Define clear charitable objectives
- Ensure objectives are non-profit in nature
Step 2: Draft Trust Deed
The trust deed should include:
- Name and address of trust
- Objects and activities
- Details of trustees
- Powers and duties of trustees
- Utilization of funds
- Dissolution clause
Step 3: Arrange Trustees & Property
- Minimum two trustees required
- Identify trust property (movable or immovable)
- Decide registered office address
Step 4: Stamp Duty & Execution
- Pay applicable stamp duty (varies by state)
- Execute trust deed on non-judicial stamp paper
- Sign by settlor and trustees in presence of witnesses
Step 5: Trust Registration
- Submit trust deed to local Sub-Registrar
- Complete biometric verification
- Obtain registered trust deed
Step-by-Step Process for Society Registration in India
Step 1: Select Society Name
- Choose a unique name
- Avoid names prohibited under Emblems & Names Act
- Confirm name availability with Registrar
Step 2: Form Governing Body
- Minimum 7 members required
- Appoint President, Secretary, Treasurer
- Decide registered office address
Step 3: Draft MOA & Bye-laws
Documents must include:
- Name and objectives of society
- Member details
- Governing body structure
- Meeting procedures
- Fund utilization
- Dissolution clause
Step 4: Prepare Registration Documents
- Address proof of registered office
- ID proof of members
- Affidavits and declarations
- Covering letter and application form
Step 5: File Application with Registrar
- Submit application to Registrar of Societies
- Pay government registration fees
- Respond to queries, if any
Step 6: Certificate of Registration
Once approved:
- Society Registration Certificate issued
- Society becomes a legal entity
Time Required for Registration
- Trust Registration: 7–15 working days
- Society Registration: 15–30 working days
Timelines may vary by state.
Post-Registration Compliances
After registration:
- Apply for PAN
- Open bank account
- Maintain books of accounts
- Apply for 12AB and 80G (if required)
- File annual returns as applicable
How Saving Mantra Helps
Saving Mantra offers end-to-end services for Trust Creation & Society Registration, including:
- Structure selection advisory
- Drafting deeds, MOA & bye-laws
- Registration filing & follow-ups
- Post-registration compliance support
- Tax and NGO advisory services
Disclaimer
This article is for informational purposes only and does not constitute legal or professional advice. Registration requirements, stamp duty, and procedures vary by state. Readers are advised to consult qualified professionals before proceeding. Saving Mantra shall not be responsible for decisions taken based on this information.