Guide to Registration of a Trust in India

Registering a trust in India involves a specific process that differs from registering a company. Here is a general guide to help you understand the process of trust registration in India:

Determine the Type of Trust

Decide on the type of trust you want to register. In India, you can register either a public charitable trust or a private charitable trust. Public charitable trusts are intended for the benefit of the general public, while private charitable trusts are for the benefit of specific individuals or families.

Settle the Trust Deed

Prepare a trust deed, which is a legal document that outlines the objectives, rules, and regulations of the trust. The trust deed should include details such as the name of the trust, its objectives, the names and addresses of trustees, and the rules for the management of the trust. Consult with a legal expert to draft the trust deed, ensuring it complies with applicable laws.

Select Trustees

Choose suitable individuals to serve as trustees of the trust. Trustees are responsible for managing the affairs of the trust and ensuring its objectives are fulfilled. The trust deed should mention the number of trustees required and their roles and responsibilities.

Prepare required Documents for trust registration

Gather the necessary documents for trust registration, including:

  • Trust deed on stamp paper with the appropriate value (varies by state)
  • Identity proofs (such as an Aadhaar card, or PAN card) and photographs of the trustees
  • Address proof of the registered office of the trust
  • NOC (No Objection Certificate) from the property owner (if the office is rented)

Visit the Sub-registrar’s Office

Visit the local sub-registrar’s Office responsible for the area where the trust’s registered office is located. Submit the trust deed and all supporting documents to the Sub-Registrar’s Office for registration.

Pay Stamp Duty and Registration Fees

Pay the applicable stamp duty and registration fees for the trust deed at the Sub-Registrar’s Office. The stamp duty amount varies from state to state, so check the specific rates applicable in your region.

Obtain Registered Trust Deed

Once the trust deed is registered, the Sub-Registrar’s Office will provide a copy of the registered trust deed. This document serves as proof of the trust’s existence and can be used for various purposes, including opening a bank account in the trust’s name.

Apply for PAN and Bank Account:

Apply for a Permanent Account Number (PAN) for the trust from the Income Tax Department. PAN is required for all tax-related transactions. Use the registered trust deed, along with other required documents, to open a bank account in the name of the trust.

Tax Exemptions for Trust (Optional):

If the trust intends to seek tax exemptions under Section 12A and 80G of the Income Tax Act, you can apply to the Income Tax Department for these exemptions. This allows donors to the trust to claim tax benefits for their contributions.

It is recommended to consult with a legal expert or a professional who specializes in trust registrations to ensure compliance with all legal requirements and procedures specific to your state or region in India.