A Trust is a legally recognized entity that is established to manage assets for a specific purpose, such as charity, education, medical relief, or religious activities. In India, trusts are primarily governed by the Indian Trusts Act, 1882 (for private trusts) and state-specific laws (for public charitable trusts).

This guide provides a detailed step-by-step process for Trust registration in India, covering legal requirements, documentation, and compliance.

1. Types of Trusts in India

Trusts in India are categorized into two broad types:

✅ Private Trusts: Created for the benefit of specific individuals or groups. Governed by the Indian Trusts Act, 1882.
✅ Public Trusts: Established for charitable or religious purposes and open to the public. Governed by state-specific Public Trust Acts.

📌 Key Differences:

• Private Trusts benefit a specific person or family (e.g., property inheritance).
• Public Trusts work for the welfare of society, like education, healthcare, or social service.

2. Eligibility Criteria for Trust Registration

Before registering a trust, ensure it meets the following criteria:

✔️ Minimum Members: Requires at least two trustees (no upper limit).
✔️ Purpose: Must be created for legal and charitable purposes such as education, health, or religious work.
✔️ Trust Property: A trust must have some assets or property to manage.
✔️ Legality: The objectives must be legal and not against public policy.

3. Step-by-Step Process to Register a Trust in India

The registration process involves drafting a Trust Deed, getting it notarized, and submitting it to the Sub-Registrar of Trusts.

Step 1: Drafting the Trust Deed

• A Trust Deed is the founding document that defines the trust’s objectives, rules, and management structure.
• It should include:
  • Name of the Trust
  • Address of the Trust
  • Objectives of the Trust
  • Details of Trustees & Settlor
  • Rules and Regulations
  • Trustee Appointment and Removal Process

Step 2: Choose the Trustees and Settlor

• Settlor: The person who creates the trust.
• Trustees: Individuals who manage and run the trust.
• Trustees should be reliable and capable of managing the trust’s operations.

Step 3: Registering the Trust Deed

• The Trust Deed must be registered with the Sub-Registrar of Trusts in the respective state.
• 📌 Documents Required:
  ✔️ Trust Deed (signed by all trustees and settlor).
  ✔️ PAN & Aadhaar of trustees.
  ✔️ Address proof of trust’s registered office.
  ✔️ Passport-size photos of trustees.
  ✔️ Stamp paper (varies by state).

Step 4: Obtain a PAN and Bank Account for the Trust

• After registration, the trust must apply for a PAN (Permanent Account Number).
• A separate bank account must be opened in the trust’s name.

Step 5: Apply for 12A and 80G Certificates (Tax Exemptions)

• 12A Registration: Exempts the trust from income tax.
• 80G Registration: Allows donors to claim tax deductions for donations made to the trust.

📌 Processing Time for Registration: 10–20 days, depending on state regulations.

4. Documents Required for Trust Registration

📂 For Trustees and Settlor:
✔️ PAN Card
✔️ Aadhaar Card
✔️ Passport-size Photos

📂 For Trust Property (if applicable):
✔️ Ownership Document or Rent Agreement
✔️ Electricity Bill (Address Proof)

📂 For Trust Deed Registration:
✔️ Stamp Paper (Value depends on state rules)
✔️ Signed Trust Deed

5. Costs Involved in Trust Registration

📌 Government Registration Fees: ₹2,000 – ₹10,000 (varies by state)
📌 Stamp Duty on Trust Deed: ₹500 – ₹2,000
📌 Professional Fees (CA/CS Assistance): ₹10,000 – ₹25,000

6. Post-Registration Compliance for Trusts

After registration, a Trust must comply with legal and tax regulations:

✅ Annual Filing & Audit

• Trusts must maintain financial records and submit audited reports.
  ✅ Income Tax Return (ITR-7 Filing)
• Public Trusts must file ITR-7 for tax exemptions.
  ✅ Renewal of 12A & 80G Certificates
• Must be renewed every 5 years.
  ✅ GST Registration (if applicable)
• Required if turnover exceeds ₹20 lakh.

7. Why Choose ASK ASSOCIATES for Trust Registration?

🔹 End-to-End Assistance: From Trust Deed drafting to registration and tax exemption approvals.
🔹 Legal Expertise: Our team ensures error-free documentation and compliance.
🔹 Faster Processing: Get your Trust registered hassle-free and quickly.

📞 Need assistance with Trust Registration? Contact ASK ASSOCIATES today!