Trust Registration

Trust Registration in India – An Overview

Trust registration in India is the legal process of formally establishing a trust under the Indian Trusts Act. A trust is a fiduciary arrangement where the settlor (the creator of the trust) transfers assets or property to trustees, who manage it for the benefit of specified beneficiaries.

Although registering a trust is not mandatory under Indian law, doing so provides legal recognition, enhances credibility, and allows eligibility for tax exemptions, donations, and government grants under the Income Tax Act.

With A2Z Registration, the entire process — from drafting the trust deed to documentation, submission, and obtaining the trust registration certificate — is handled efficiently by professionals, ensuring a smooth and compliant experience.

What is Trust Registration in India?

Trust registration is the formal legal recognition of a trust under Indian law. It ensures proper governance and provides a legal structure for managing assets and fulfilling the objectives for which the trust is created.

A trust can be formed for various purposes such as:

Charitable trusts – for education, healthcare, or relief of the poor.
Private trusts – for family wealth management and succession planning.
Religious trusts – to manage temples, mosques, or religious institutions.
Public trusts – to serve the general public or a section of it.

Governing Laws for Trusts in India

Indian Trusts Act, 1882 – Governs private trusts.
Charitable and Religious Trusts Act, 1920 – Covers charitable and religious trusts.
Income Tax Act, 1961 – Regulates tax exemptions (Sections 12A & 80G).
Registration Act, 1908 – Governs trust deed registration.
Societies Registration Act, 1860 – Alternative route for NGOs or societies.

Types of Trusts in India

Charitable Trusts – Created for public welfare (education, health, relief, etc.) and eligible for tax exemptions.
Private Trusts – Established for individuals or families; not eligible for public tax benefits.
Public Trusts – Serve the general public, funded by donations.
Religious Trusts – For managing religious activities and institutions.
Revocable/Irrevocable Trusts – Revocable trusts can be modified; irrevocable ones cannot.
Testamentary Trusts – Created through a will, effective after the settlor’s death.

Why Register a Trust?

Registering a trust offers several key advantages:

✅ Legal Protection: Safeguards ownership and avoids future disputes.
✅ Tax Benefits: Eligibility for 80G and 12A exemptions.
✅ Public Credibility: Increases donor and stakeholder confidence.
✅ Access to Schemes: Enables participation in government grants and CSR funding.
✅ Administrative Clarity: Defines trustee roles and responsibilities.
✅ Financial Access: Facilitates bank account setup and donation management.

Who Should Register a Trust?

NGOs planning to work on social projects.
Families managing ancestral wealth through private trusts.
Religious institutions managing temples or spiritual programs.
Philanthropists creating charitable organisations.
Trustees or individuals wanting legal and financial structure.

Trust Deed in India: Key Details

A Trust Deed is a legal document that defines the objectives, structure, and duties of all involved parties. It must be executed on non-judicial stamp paper and registered with the Registrar of Trusts.

Main Components:

Name of Trust
Details of Settlor & Trustees
Objectives of the Trust
Beneficiary Details
Trust Property Information

Essential Clauses:

Name Clause
Objective Clause
Trustees Clause
Beneficiaries Clause
Property Clause
Dissolution Clause

Documents Required for Trust Registration Online

Trust deed on non-judicial stamp paper
PAN/Aadhaar/Passport of settlor & trustees
Address proof of all parties
PAN of the trust
Passport-size photographs
NOC from property owner (if rented)
Latest utility bill of registered address
Signatures of settlor & trustees

Key Parties in Trust Registration

Settlor: Creates and funds the trust.
Trustees: Manage the trust per the deed. (Minimum two required)
Beneficiaries: Individuals or entities receiving benefits.
Registrar: Approves and certifies the registration.
Charity Commissioner: Monitors charitable and religious trusts.

Step-by-Step Process for Trust Registration

Choose a Unique Name (must comply with Emblems & Names Act).
Select Settlor and Trustees (minimum two Indian residents).
Draft the Memorandum of Association (MOA) detailing objectives.
Prepare the Trust Deed with all key clauses.
Submit Documents to the Registrar with proofs and declarations.
Obtain the Trust Registration Certificate upon approval.
Open a Bank Account in the trust’s name for financial transactions.