Trust Registration

A trust is an arrangement in which a settlor transfers property to trustees, who hold and manage it for beneficiaries or for a charitable purpose. A public charitable trust is one of the simplest and most established ways to run an NGO or charitable initiative in India.

Private trusts are governed by the Indian Trusts Act, 1882; public charitable trusts are governed by State-specific Public Trusts Acts and general law, and are registered with the local Sub-Registrar (and Charity Commissioner where the State requires).

A trust is created through a trust deed that names the settlor and trustees and sets out the objects and powers. The trustees manage the trust as the deed provides.

• Trust deed — executed on stamp paper
• PAN and Aadhaar of the settlor and the trustees
• Identity and address proof, and photographs, of the settlor and trustees
• Proof of the trust's registered address — rent agreement and NOC, or ownership proof, with a recent utility bill
• A statement of the objects of the trust

1. 01

   Decide the structure

   Settle the trust's name, objects, the settlor, and the trustees.

2. 02

   Draft the trust deed

   Prepare the deed — objects, powers, and management — on stamp paper of the appropriate value.

3. 03

   Register the deed

   Register the deed with the Sub-Registrar (and Charity Commissioner where the State requires).

4. 04

   Apply for the trust's PAN

   Obtain a PAN in the trust's name for tax and banking.

5. 05

   Tax registrations and set-up

   Apply for 12A and 80G for a charitable trust, FCRA if foreign donations are expected, and open the bank account.

PBT sets your trust up on a sound footing — starting with a deed that holds up later.

• We advise on a trust versus a society or Section 8 company for your purpose
• We draft a clear trust deed covering objects, trustee powers, succession, and management
• Registration of the deed and the trust's PAN
• 12A and 80G applications, and FCRA where foreign donations are expected
• Ongoing income-tax and donor compliance
• Scope, deliverables, and fees agreed in writing up front

• What is a trust?

  An arrangement in which trustees hold property for beneficiaries or for a charitable purpose, created through a trust deed.

• How does a trust compare with a society or Section 8 company?

  A trust is the simplest, with trustee control; a society is member-based with an elected committee; a Section 8 company offers the strongest governance and recognition. We help you choose.

• Can a charitable trust get tax exemption?

  Yes — by obtaining 12A and 80G registration with the Income-tax department.

• How many trustees are needed?

  At least two are recommended; the deed defines the number of trustees and their powers.

• Is registration mandatory?

  A public charitable trust should be registered — and in some States must be, with the Charity Commissioner — to be effective and to claim tax exemptions.

• How long does it take?

  The trust deed can be executed quickly, and registration with the Sub-Registrar is usually completed within about 1–2 weeks, depending on the State. The 12A and 80G tax registrations are obtained separately and take longer.