Trust Registration in India is the legal process of creating a charitable or private trust to manage assets or carry out activities for public welfare, education, healthcare, religion, or family purposes. A registered trust gains legal recognition, credibility, and eligibility for tax benefits.
In this Saving Mantra guide, we explain what a trust is and provide a step-by-step process for Trust Registration in India, including eligibility, documents, benefits, and post-registration compliance.
What is a Trust?
A Trust is a legal arrangement where the settlor transfers property or assets to trustees, who hold and manage them for the benefit of beneficiaries or for charitable objectives. Trusts in India are governed mainly by the Indian Trusts Act, 1882 (for private trusts) and relevant state laws (for public charitable trusts).
Types of Trusts in India
1. Public Charitable Trust
Formed for charitable purposes such as education, medical relief, poverty alleviation, or public welfare.
2. Private Trust
Formed for the benefit of specific individuals or families.
Who Can Form a Trust?
- Any Indian citizen or group of persons
- Minimum two trustees are required
- Trust can be formed with or without property (for charitable purposes)
Benefits of Trust Registration
- Legal recognition and credibility
- Eligibility for tax exemptions (12A, 80G – subject to approval)
- Ability to open bank accounts and receive donations
- Transparency and structured governance
- Long-term continuity and asset protection
Step-by-Step Process for Trust Registration in India
Step 1: Decide the Trust Name
Choose a unique name that does not infringe existing registered trusts or trademarks.
Step 2: Identify Settlor and Trustees
Appoint the settlor (creator of trust) and at least two trustees who will manage the trust.
Step 3: Draft the Trust Deed
Prepare the Trust Deed, which is the main legal document defining:
- Name and address of the trust
- Objectives of the trust
- Details of trustees and settlor
- Trust property and management rules
- Powers, duties, and tenure of trustees
Step 4: Stamp the Trust Deed
Pay the applicable stamp duty on the trust deed as per state stamp laws.
Step 5: Register the Trust Deed
Submit the trust deed to the Sub-Registrar of Assurances for registration along with required documents.
Step 6: Obtain Trust Registration Certificate
After verification, the trust deed is registered and the Trust Registration Certificate is issued.
Documents Required for Trust Registration
- Trust Deed (on stamp paper)
- PAN Card of settlor and trustees
- Identity & address proof of trustees
- Passport-size photographs
- Address proof of registered office
- NOC from property owner (if applicable)
(Document requirements may vary by state)
Time Required for Trust Registration
- Generally 7 to 15 working days, depending on state and documentation accuracy.
Post Trust Registration Compliance
- Apply for PAN Card of trust
- Open trust bank account
- Maintain books of accounts
- File income tax returns
- Apply for 12A and 80G (optional, for tax benefits)
- Conduct meetings as per trust deed
Difference Between Trust, Society & Section 8 Company
| Basis | Trust | Society | Section 8 Company |
|---|---|---|---|
| Governing Law | Trust Act | Societies Act | Companies Act |
| Registration Authority | Sub-Registrar | Registrar of Societies | ROC |
| Compliance | Low | Medium | High |
| Ideal For | Charitable & family trusts | Associations | Large NGOs |
Why Choose Saving Mantra for Trust Registration?
- Expert drafting of trust deed
- State-wise registration guidance
- Transparent and affordable pricing
- Quick and compliant registration
- End-to-end NGO and trust compliance support
Conclusion
Trust Registration in India is a foundational step for individuals and groups aiming to create a legally recognized structure for charitable or private purposes. By following the correct step-by-step trust registration process, you can ensure transparency, legal compliance, and long-term sustainability. Saving Mantra provides a smooth, professional, and hassle-free Trust Registration service across India.
Disclaimer
The information provided in this blog is for general informational purposes only and does not constitute legal, tax, or professional advice. Trust laws, stamp duty, and registration procedures vary by state and are subject to change. Readers are advised to consult qualified professionals before proceeding with Trust Registration in India.