Trust Registration in India

A Trust is a legal entity created to manage property or assets for a charitable, religious, or public cause. In India, trust registration is governed primarily by the Indian Trusts Act, 1882 (for private trusts) and various state-level Public Trust Acts (for charitable/public trusts). Trusts are commonly formed for purposes like education, healthcare, poverty relief, religious promotion, and other welfare activities.

Parties Involved in Trust Registration

When forming a trust, several key individuals or entities are involved. Each plays a specific role in the creation, management, and operation of the trust.

 Settlor / Author of the Trust

• The person who creates the trust by executing the trust deed

• Transfers property or funds into the trust

• Defines the purpose, objectives, and terms of the trust

• Can also be a trustee or beneficiary (but not mandatory)

📝 Key Role: Initiator of the trust formation

 Trustees

• Individuals or a group appointed to manage the trust

• Responsible for carrying out the objectives of the trust

• Manage assets, raise funds, maintain records, and ensure legal compliance

• Must act in fiduciary capacity and without personal profit

📝 Key Role: Custodian and manager of trust assets and operations

 Beneficiaries

• The recipients of the trust’s benefits

• In public charitable trusts, these are the general public or a section of society (e.g., children, women, students, poor, etc.)

• In private trusts, beneficiaries are usually specific individuals or families

📝 Key Role: The ones for whom the trust is created

 Registrar/Sub-Registrar of Trusts

• Government authority where the trust deed is registered

• Usually the Sub-Registrar of Assurances in the district where the trust office is located

• Responsible for recording and certifying the registration of the trust

📝 Key Role: Legal authority to validate and register the trust

 Witnesses (2 Required)

• Two adult individuals who attest the signing of the trust deed

• They must not be trustees or beneficiaries

• Their signatures are required during registration before the Sub-Registrar

📝 Key Role: Provide legal authentication of the deed execution

Types of Trusts in India

Trusts in India are primarily classified based on purpose, beneficiaries, and regulatory laws. Understanding the types of trusts helps determine the right structure for charitable, private, or commercial objectives.

 1. Public Trust

A Public Trust is created for the benefit of the general public or a section of society. These are generally charitable in nature.

 Examples:

• Educational trusts

• Medical and health trusts

• Orphanages, old-age homes, and shelters

• Religious trusts (temples, mosques, churches)

 Governing Law:

• State Public Trust Acts (e.g., Bombay Public Trust Act in Maharashtra)

• Indian Trusts Act, 1882 (applicable in absence of state law)

 2. Private Trust

A Private Trust is created for the benefit of specific individuals or families and does not serve a public or charitable purpose.

 Examples:

• Family trusts

• Asset protection trusts

• Inheritance or estate planning trusts

 Governing Law:

• Indian Trusts Act, 1882

 3. Public-Cum-Private Trust

This is a hybrid trust created for both charitable (public) and specific private beneficiaries. The income or benefits may be split between public causes and private individuals.

 Example: A trust that supports public education but also reserves scholarships for a founder’s family members.

 4. Testamentary Trust

• Created through a Will and comes into effect after the death of the settlor

• Can be public or private

• Commonly used for estate and succession planning

 5. Living / Inter-Vivos Trust

• Created during the lifetime of the settlor

• Comes into effect immediately upon registration

• Can be either public or private

Objectives of a Trust (In General)

A Trust is created with the intention to manage and apply assets or property for a specific purpose, often in the interest of individuals or the broader public. The objectives vary depending on whether the trust is private or public, but the core aim is to ensure that resources are used responsibly and in alignment with the settlor’s intent.

 Common Objectives of a Trust

1. Charitable Purpose

   • Advancement of education

   • Promotion of healthcare and medical aid

   • Relief of poverty, hunger, and distress

   • Support for disabled, elderly, and underprivileged

2. Religious Purpose

   • Maintenance of places of worship (temples, mosques, churches, etc.)

   • Promotion and preservation of religious teachings and practices

   • Support of religious rituals, festivals, and pilgrimages

3. Educational Purpose

   • Establishment and maintenance of schools, colleges, libraries

   • Providing scholarships and financial aid to students

   • Promoting vocational and skill-based education

4. Medical Relief

   • Running of hospitals, clinics, blood banks, and mobile health units

   • Free or subsidized treatment and health camps

   • Spreading awareness about public health and sanitation

5. Social Welfare

   • Women and child development initiatives

   • Old-age homes, orphanages, shelters

   • Environmental protection and rural development

6. Estate and Family Planning (Private Trusts)

   • Managing wealth and property for future generations

   • Ensuring financial security for dependents

   • Protecting assets from division or misuse

7. Preservation of Culture and Art

   • Promoting fine arts, music, literature, and heritage

   • Organizing cultural events, museums, and exhibitions

Benefits of Trust Registration in India

Registering a trust is not just a legal formality — it brings multiple advantages in terms of legitimacy, governance, funding, and taxation. Whether the trust is charitable, religious, or private, registration provides structure and credibility.

 1. Legal Recognition

• A registered trust is a legal entity with perpetual succession.

• It can enter into contracts, own property, and open a bank account in its name.

 2. Structured Governance

• Registration provides a clear structure for management and operations.

• Trust Deed outlines the powers, duties, and rights of trustees and beneficiaries.

 3. Eligibility for Tax Exemptions (12A & 80G)

• Registered charitable trusts can apply for 12A (income tax exemption) and 80G (tax deduction for donors) under the Income Tax Act.

• Helps in reducing the financial burden and attracting more donations.

 4. Access to Foreign Contributions (FCRA)

• Trusts can apply for FCRA registration to receive foreign donations.

• Widens scope for global fundraising and partnerships.

 5. Transparency and Credibility

• Registration builds trust among donors, government agencies, and the public.

• Audited financials and legal recognition help gain CSR funding and government support.

 6. Asset and Property Protection

• Assets registered under the trust are legally protected from misuse.

• Ensures continuity and protection of property even after the death of the settlor.

 7. Purpose-Specific Utilization

• Assets and donations are used strictly for the stated objectives.

• Prevents diversion of funds and ensures accountability.

 8. Continuity and Succession Planning

• The trust can continue its operations regardless of changes in trustees.

• Ensures long-term vision and legacy preservation.

​​​​​​​Trust Deed 

A Trust Deed is a foundational legal document that establishes a trust and governs its functioning. It is an agreement between the author (settlor) and the trustees, outlining how the trust’s property will be managed and for what purpose.The deed formally expresses the objectives, structure, duties, powers, and regulations under which the trust operates. It serves as the constitution of the trust, ensuring legal recognition and providing a clear framework for its management.

 Key Highlights:

• Defines the intent and objectives of the trust (charitable, religious, educational, private, etc.)

• Details the roles and responsibilities of the trustees

• Identifies the beneficiaries of the trust

• Essential for trust registration under Indian law

• Mandatory for obtaining tax exemptions, bank accounts, and FCRA approval

​​​​​​​Documents Required for Trust Registration in India

To legally register a trust (public charitable or private), certain documents must be prepared and submitted to the Sub-Registrar of Assurances or Charity Commissioner (depending on the state). These documents form the legal foundation for the trust’s recognition and compliance.

 1. Trust Deed (Mandatory Document)

• The most important document – acts as the constitution of the trust

• Must be printed on non-judicial stamp paper (value depends on the state)

• Must include objectives, trustee details, powers, rules, etc.

 2. ID and Address Proof of Settlor and Trustees

Submit any one of the following for each:

• Aadhaar Card

• PAN Card

• Passport

• Voter ID

• Driving License

 Ensure the details match across documents and are self-attested.

 3. Passport-size Photographs

• Recent photos of all trustees and the settlor

 4. Proof of Registered Office Address

Any one of the following:

• Electricity Bill / Water Bill / Property Tax Receipt

• Rent Agreement (if property is rented)

• No Objection Certificate (NOC) from the landlord (if applicable)

 5. PAN Card of the Trust (Post-registration)

• After the trust is registered, apply for a PAN in the name of the trust through NSDL or UTIITSL.

 6. Witness Proofs

• Two witnesses are required at the time of trust deed registration

• ID proofs of both witnesses must be submitted

​​​​​​​How to Register a Trust in India 

Registering a trust provides it with legal recognition, enables tax benefits, and ensures transparent governance. The process of trust registration involves drafting the trust deed, collecting required documents, and registering it with the Sub-Registrar of Assurances under the Indian Registration Act, 1908.

 Step 1: Decide the Type of Trust

Choose between:

• Public Trust – for charitable or religious purposes

• Private Trust – for personal or family benefit

 Step 2: Select a Name for the Trust

• The name must not be similar to any existing registered trust or violate trademark laws.

• It should reflect the nature or objective of the trust.

 Step 3: Draft the Trust Deed

• Prepare a Trust Deed detailing:

  • Name and address of the trust

  • Objectives and beneficiaries

  • Details of settlor and trustees

  • Rules, powers, and responsibilities

  • Registered office address

  • Clause for dissolution and amendment

Must be printed on non-judicial stamp paper of appropriate value (varies by state).

 Step 4: Choose Trustees

• Minimum 2 trustees required (no maximum limit)

• Trustees must be competent adults (18+)

• A settlor (founder) may or may not be a trustee

Step 5: Prepare Supporting Documents

• ID and address proof of all trustees and settlor

• Passport-size photographs

• Registered office proof (utility bill/rent agreement + NOC)

• Witness ID proofs

 Step 6: Register the Trust Deed

• Visit the local Sub-Registrar’s office with the deed and documents

• Settlor and two witnesses must be present

• Pay the registration fee and stamp duty as per state rules

• The Sub-Registrar will verify and register the deed, providing a certified copy

Step 7: Apply for PAN of the Trust

• Submit Form 49A online (NSDL/UTIITSL) to get a PAN in the trust’s name

• PAN is mandatory for banking and compliance

 Step 8: Open a Bank Account

• Open a dedicated trust account using:

  • Trust Deed copy

  • PAN card

  • KYC of trustees

  • Resolution to open account

Step 9: Apply for 12A & 80G Registration (Optional)

• For tax exemption and to allow donors to claim deductions, register under:

  • Section 12A – income tax exemption

  • Section 80G – donor tax benefit

• File application online through the Income Tax e-filing portal

​​​​​​​Why Choose YKG GLOBAL for Trust Registration?

Registering a trust involves legal, procedural, and regulatory steps that require experience, accuracy, and expert guidance. At YKG GLOBAL, we offer end-to-end trust registration services tailored to ensure a smooth, compliant, and efficient process — trusted by thousands of clients across India and globally.

 1. 40+ Years of Legal Expertise

Established in 1981, YKG GLOBAL brings decades of experience in legal consulting and registration services. We understand the nuances of both public and private trust formation.

 2. Complete End-to-End Support

From drafting your trust deed to getting PAN, 12A & 80G, FCRA, and setting up bank accounts — we handle everything. You focus on your mission while we manage the compliance.

 3. Expert Legal Drafting

Our legal team ensures your trust deed is customized, accurate, and compliant with all state and central laws, eliminating future disputes and registration delays.

 4. PAN India & Global Presence

Whether you are in a metro, Tier-2 city, or overseas, we offer remote assistance and physical support through our local representatives, ensuring timely execution.

 5. Seamless 12A & 80G Registration

We specialize in helping charitable trusts get registered under Section 12A and 80G, making you eligible for income tax exemption and donor deductions.

 6. Transparent, Fixed Pricing

No hidden charges. Clear scope, upfront pricing, and zero last-minute surprises.

 7. Client-Centric Service

We pride ourselves on responsive communication, dedicated consultants, and personalized attention to each case — from small community trusts to large philanthropic foundations.

 8. Post-Registration Compliance Support

Our work doesn’t end at registration. We offer annual compliance, audit assistance, renewal, and advisory services to help your trust stay legally sound.