Trust Registration
Trust Registration in India
A trust is a legal entity established to serve noble causes such as education, healthcare, poverty alleviation, and social welfare. Trusts play a crucial role in promoting the development of science, literature, and other charitable activities.
Trust registration is governed under the Indian Trusts Act, 1882, ensuring legal recognition and compliance with the law. A registered trust enjoys legal validity, making it eligible for tax benefits, government grants, and increased credibility in public and private sectors.
Why Register a Trust?
✅ Provides legal recognition and protection
✅ Increases credibility and eligibility for grants and donations
✅ Helps obtain tax exemptions under Section 12A & 80G of the Income Tax Act
✅ Ensures transparency in fund management and operations
Process for Applying for Trust Registration
1. Choose a Name for the Trust
- The name must comply with the Trademark Act, Copyright Act, Intellectual Property Rights Act, and Emblems and Names Act, 1950.
- The chosen name should be unique and not infringe on existing trademarks or copyrights.
2. Identify the Settlers & Trustees
- The settler is the person who creates the trust.
- A minimum of two trustees is required, but there is no upper limit.
- The settler cannot be a trustee.
- All trustees must be residents of India.
3. Prepare a Memorandum of Association (MOA)
- The MOA must define the objectives and purpose of the trust.
- The goals should align with legally permissible activities such as charity, education, social welfare, healthcare, etc.
4. Draft the Trust Deed
- The trust deed is the legal document that defines the structure, objectives, powers, and responsibilities of the trust.
- The trust deed must include:
- Name and address of the trust
- Objectives of the trust
- Details of trustees and their roles
- Rules for adding or removing trustees
- Management and decision-making processes
5. Submit the Trust Deed to the Registrar
- Submit the trust deed along with supporting documents to the local sub-registrar office.
- Required documents include:
📌 Identity proof of settler and trustees (Aadhaar, PAN, Passport, Voter ID)
📌 Address proof of registered office (Electricity Bill, Rent Agreement, Property Documents)
📌 Two passport-size photographs of trustees
6. Obtain Trust Registration Certificate
- After verification, if the registrar is satisfied, the trust will be officially registered.
- A trust registration certificate will be issued, legally recognizing the trust.
- The trust can then open a bank account and begin operations.
Documents required:
- Trust Deed with the respective stamp value.
- Two photographs of the parties involved in the trust.
- PAN cards of the individuals associated with the trust.
- Address proof of the individuals.
- Identity proof of the individuals.
- Authentication from the partners (if applicable).
- No Objection Certificate for using the premises (if applicable).
- Any form of a utility bill as proof of address.
- Address proof of the trust registered office.
- 12A Registration and 80G Certificates from the respective income tax authorities to claim deductions (if applicable).
