Trust Registration is the legal process of formally establishing a trust as a recognized entity to carry out charitable, religious, or social welfare activities.
It provides legal identity, credibility, and a structured framework for managing assets and operations through appointed trustees. Registered trusts can open bank accounts, receive donations and grants, and apply for crucial tax exemptions such as 12A and 80G.
Key Roles in a Trust
Settlor
The person who establishes the trust and places their assets or property into it.
Trustee
The entity entrusted to manage and oversee the trust property on behalf of the settlor.
Beneficiary
The intended recipient of the benefits or assets held within the trust.
Types of Trust
Public Trust
Established to benefit the general public. They are often established for charitable, educational, or religious purposes. The most popular types of public trusts in India are charitable and religious trusts.
Private Trust
Created primarily for the benefit and welfare of specific individuals or family members. It is designed for the administration and preservation of property.
The Registration Process
- 1
Choose the Trust Name
Select a unique name that aligns with the objectives of the trust.
- 2
Draft the Trust Deed
Prepare the Trust Deed outlining the trust’s objectives, details of settlor and trustees, rules, and operational framework.
- 3
Prepare Required Documents
Collect identity proofs, address proofs, photographs of members, and registered office address proof.
- 4
Execution of Trust Deed
The Trust Deed is printed on appropriate stamp paper and signed by the Settlor and Trustees in the presence of witnesses.
- 5
Submission for Registration
Submit the Trust Deed and documents to the local Sub-Registrar Office having jurisdiction.
- 6
Issuance of Certificate
Upon verification by the authority, the registered Trust Deed is issued, legally establishing the trust.