Bizigo

Trust registration Packages

STANDARD

₹ 19999/- (All Inclusive)
  •  
  • Trust Deed
  • Trust Registration with upto 4 members

Make online Payment

Fill up Application Form

Executive will process application

Get Confirmation on mail

Request call back

  • Ishaan

Expert Advisor 

Call
Chat

Trust registration India

In India, trust registration is a legal procedure that enables individuals or groups to set up a trust to provide financial assistance to charitable, educational, or religious causes. This process involves the submission of documents to the Registrar’s Office, which then verifies the authenticity of the documents. Upon completion of this process, the trust is officially registered and a certificate is issued. This process may involve payment of prescribed fees, and the registration process can take several weeks.
Trust registration in India offers a range of benefits, including tax exemption, legal recognition, credibility, and transparency. It provides a solid legal basis for the trust to own property, conclude contracts, and receive financial assistance for its activities. Trust registration ensures that the trust functions in accordance with the law, inspiring confidence among donors, beneficiaries, and other stakeholders.

Who are eligible for registering Trust?

Any individual or group of individuals who wish to create a trust for charitable, educational, religious, or social purposes are eligible to apply for registering a trust in India. There are no specific restrictions on who can apply, and both Indian citizens and non-residents can register a trust.The eligibility criteria for registering a trust are as follows:

Settlor

A settlor is a person or a group of people who establish a trust. A settlor can be any person who has the power to contract. The intention of the settlor should be to establish a trust and to transfer certain real estate or assets to trustees for the purpose of the purposes of the trust.

Trustees

A trust must have at least two trustees, who will be responsible for managing and administering the trust's affairs. The trustees can be individuals or organizations. They should be willing to take up the responsibility and should have attained the age of majority (18 years) in order to be eligible.

Beneficiaries

A trust is established for the benefit of particular individuals or a class of individuals referred to as beneficiaries. Beneficiaries may be a specific community, the general public, or a defined group of individuals. The purpose of the trust deed should be clearly stated.

Detailed Procedure

The procedure for registering a trust in India involves several steps. Here is a detailed outline of the process:
1
2
3
4
5
6
7
8
Trust Deed Preparation
The first step is to prepare a trust deed. The trust deed should include the following details: - Name and address of the trust - Objectives and activities of the trust - Names and addresses of the trustees - Powers and responsibilities of the trustees - Rules and regulations governing the trust - Mode of appointment and removal of trustees - Dissolution or winding-up procedures
Execution of Trust Deed
The trust deed must be executed on non-judicial stamp paper as per the stamp duty regulations of the concerned state. The settlor(s) must sign the trust deed in the presence of two witnesses.
Application for Registration
The next step is to prepare an application for trust registration. The application should include the following: - Covering letter including the objectives and activities of the trust - Trust deed executed on stamp paper - Identity proof (such as PAN card, Aadhaar card, or passport) and address proof (such as voter ID, utility bill, or bank statement) of the trustees - Photographs of the trustees - Non-Objection Certificate (NOC) from the landlord (if the trust office is rented)
Submission of Documents
The completed application, along with all the necessary documents, should be submitted to the local Registrar's Office or Sub-Registrar's Office. It is advisable to make copies of all the documents for future reference.
Verification and Scrutiny
The Registrar's Office will examine the documents and verify their authenticity. They may carry out a comprehensive audit of the trust document and the information contained in the application.
Trust Registration
If the Registrar's Office is satisfied with the documents and compliance, they will approve the registration of the trust. A registration certificate will be issued, indicating the registration number and date of registration.
Trust Bank Account
Once the registration certificate has been received, the trust may be authorized to open a banking account in the beneficiary’s name. The opening of the account may necessitate the issuance of a registration certificate, as well as other documentation.
Post-Registration Compliance
Once the trust is registered, it is essential to fulfill post-registration compliance requirements such as maintaining proper books of accounts, filing annual income tax returns, and submitting necessary reports to the Registrar's Office.

Documents Checklist

When applying for trust registration in Hyderabad, Telangana, the following documents are generally required. General documents needed for registration is listed below:

Trust Deed

  • The original copy of the trust deed executed on non-judicial stamp paper, including all pages and annexures.

Covering Letter

  • A covering letter addressed to the Registrar's Office, stating the purpose and objectives of the trust.

Identity Proof

  • Copies of identity proof (self-attested) for each trustee, such as: - PAN card (Permanent Account Number) - Aadhaar card - Passport - Voter ID card

Address Proof

  • Copies of address proof (self-attested) for each trustee, such as: - Aadhaar card - Passport - Voter ID card - Utility bill (electricity bill, water bill, etc.) - Bank statement

Photographs

  • Recent passport-size photographs of each trustee.

Non-Objection Certificate (NOC):

  • If the trust office premises are rented, a NOC from the landlord allows the trust to use the premises for its activities.

Registration Fee

  • The prescribed registration fee in the form of a demand draft or banker's cheque, as per the fee structure set by the Registrar's Office.

Additional Documents

  • Some Registrar's Offices may require additional documents, such as: - Affidavit stating the source of funds used for the trust's initial setup - Copy of the property documents if the trust intends to hold immovable property - Memorandum and Articles of Association (in case of corporate trustees) - Resolution of the managing committee (in case of society trustees) - Any other documents or declarations required by the specific Registrar's Office
It is important to note that all documents should be in the prescribed format, duly signed and self-attested by the trustees. It is recommended to maintain both the original and copies of all submitted documents for future reference and compliance.

Merits of Trust registration

Legal recognition

Registered trusts are legally recognized and have a formal legal status. This allows the trust to operate within the law and engage in a variety of legal transactions.

Trust credibility and credibility

Trust registration increases the trustworthiness and credibility of the trust. This is important for donors, beneficiaries and stakeholders to recognize the trust's legitimacy and accountability. This encourages donations and support for the trust.

Income Tax Exemption

Registered trusts benefit from various income tax exemptions and tax benefits. Registered trusts may be eligible to receive income tax exemptions based on Section 12A, Section 80G and Section 80B of the income tax Act.

Possibility to own property

Registered trusts have the ability to own and manage property in their name. This allows them to purchase and manage assets like land, buildings or investments to meet their goals.

Permanent existence

Registered trusts enjoy perpetual existence, which means they will continue to exist regardless of trusteeship or beneficiary changes. This provides continuity and stability for the trust’s activities and long-term goals.

Power to enter into contracts

Registered trusts are able to enter into contracts and agreements that are legally binding. This allows the trust to work with other organizations or government bodies or individuals for a variety of purposes, including partnerships, funding or service agreements.

Greater fundraising opportunities

Trust registration gives the trust the ability to raise donations, grants and funding from a variety of sources, such as government agencies, corporations, philanthropic organizations, etc. Because registered trusts have a recognized legal status, they are likely to attract more support.

Formal administration and governance structure

Trust registration requires the trust to have a formal administration and governance structure in place. This helps to ensure transparency, accountability and effective governance of the trust’s activities, resulting in more efficient resource utilization and better service provision.

Social impact and community development

Registered trusts can help individuals or groups to make a positive impact on society by tackling pressing issues, including education, health, poverty reduction, environmental protection, etc.

Comparison chart of different NGO entities

BASIS OF COMPARISON
TRUST
SOCIETY
SECTION 8 COMPANIES
Legal framework
Governed by Trust Act
Governed by Societies Act
Governed by Companies Act
Object
Charitable or religious purposes
Promote arts, culture, sports, education, etc.
Charitable or educational purposes
Minimum Number of Members/Trustees
Minimum of two trustees
Minimum of seven members
Minimum of two shareholders or members
Registration process
Registered with Charity Commissioner or Registrar of Trusts
Registered with Registrar of Societies
Registered with Registrar of Companies
Membership
No membership concept
Members
Shareholders
Name of entity
Ends with "Trust"
Ends with "Society"
Ends with "Foundation," "Association," "Institute," etc.
Tax Benefits
Eligible for tax exemption
Eligible for tax exemption
Eligible for tax exemption
Audit Requirements
Annual audit required
Audit is not mandatory
Annual audit required
Liability
The liability is generally limited
The liability is generally unlimited
The liability is limited
Profit distribution
Not allowed
Not allowed
Not allowed

FAQ's

A trust is a legal arrangement where property or assets are held and managed by trustees for the benefit of beneficiaries. Trust registration is necessary to provide legal recognition to the trust, ensure transparency, accountability, and enable the trust to avail various benefits and exemptions.
Any individual or group of individuals, whether Indian citizens or non-residents, can register a trust in India. There are no specific restrictions on who can apply for trust registration.
The essential documents required for trust registration in India include the trust deed, identity proofs of trustees, address proofs of trustees, photographs of trustees, and any additional documents as per the specific requirements of the Registrar’s Office.
Yes, it is generally required to have a minimum of two trustees for trust registration in India. However, some states may have specific provisions regarding the number of trustees.
Registered trusts in India may be eligible for tax exemptions under Section 12A and 80G of the Income Tax Act, allowing them to receive tax benefits and enable donors to avail deductions for their contributions.
Yes, a trust can be registered with a rented office premises in India. However, a No Objection Certificate (NOC) from the landlord is generally required.
The time required to complete the trust registration process in India can vary. It typically takes several weeks to months, depending on factors such as the workload of the Registrar’s Office and the completeness of the application.

. Yes, a trust registered in one state in India can operate in other states as well. However, it may need to comply with the specific laws and regulations of each state where it operates.

Yes, foreign citizens and organizations can register a trust in India, subject to certain rules and regulations. They may need to comply with additional requirements and obtain necessary permissions.
No, an existing trust cannot be re-registered in a different state in India. However, it may need to follow certain procedures to continue its operations in another state.
Cart
Checkout - ₹0.00
  • 0
  • 1