TRUST REGISTRATION

1. Introduction

A Trust is a legal entity created by one or more persons (called Author/Settlor) for charitable, religious, social, or private purposes. Trusts in India are generally registered under the Indian Trusts Act, 1882 (for private trusts) and under the State Public Trust Acts / Charitable & Religious Trust laws (for public charitable trusts). Registration gives the trust legal recognition and credibility to operate.

2. Types of Trusts

   1. Public Charitable Trust
      Formed for welfare activities such as education, health, social welfare, relief services, etc.
   2. Public Religious Trust
      Formed to manage temples, mosques, religious institutions, or related activities.
   3. Private Trust
      Created for the benefit of specific individuals or family members.
   4. Hybrid Trust
      Contains combined elements of both public and private trust.

Most NGOs are registered as Public Charitable Trusts.

3. Advantages of Trust Registration

• Provides legal identity and formal recognition.
• Allows opening a bank account in the trust’s name.
• Eligible to receive donations, grants, CSR funds.
• Suitable for land ownership, property, and assets.
• Easy management and operational flexibility.
• Can apply for 12A & 80G, FCRA (after meeting conditions).
• Reduces chances of internal disputes due to defined structure

4. Key Components of a Trust

• Settlor / Author – Person who creates the Trust.
• Trustees – Persons who manage the affairs of the Trust.
• Beneficiaries – Public at large (for charitable trusts).
• Trust Deed – The legal document defining objectives, rules, and structure.

5. Documents Required for Trust Registration

1. Trust Deed (properly drafted on stamp paper).
2. ID & Address Proof of Settlor (Aadhaar/PAN).
3. ID & Address Proof of Trustees (minimum 2 or 3 depending on state).
4. Passport-size photographs of Settlor & Trustees.
5. Address Proof of Registered Office (Rent Agreement/Property Documents).
6. NOC from property owner for trust office address.
7. Witness details (2 witnesses with ID proof).
8. PAN of Trust (applied after registration).

6. Contents of a Trust Deed

A proper trust deed includes:
• Name of the Trust
• Address and area of operation
• Details of Settlor and Trustees
• Objectives of the Trust (charitable, religious, etc.)
• Powers and duties of Trustees
• Management and operational structure
• Bank operation rules
• Meeting and quorum provisions
• Addition/removal of trustees
• Dissolution clause
• Maintenance of accounts and audit

7. Procedure for Trust Registration

1. Drafting of Trust Deed with objectives and trustee details.
2. Preparing the deed on required stamp paper as per state law.
3. Signature of Settlor, Trustees, and Witnesses.
4. Visit the Sub-Registrar/Registrar Office.
5. Submit:
       o Trust Deed
       o KYC documents
       o Passport photos
       o Office address proof
6. Pay government registration fees.
7. Registrar verifies identity and signs the deed.
8. Receive Registered Trust Deed and Registration Certificate.

8. Post-Registration Compliance

• Apply for PAN of Trust.
• Open Trust Bank Account.
• Maintain proper accounts and records.
• Conduct regular trustee meetings (recorded in Minutes Book).
• Annual audit (if required in your state).
• Apply for 12A & 80G to avail income tax exemption.
• File returns and reports as per Income Tax Act.

9. Common Objectives of Charitable Trusts

• Education and literacy promotion
• Health, medical relief, and sanitation
• Social welfare and community development
• Women empowerment and child welfare
• Relief to poor, old-age, disabled, and disadvantaged groups
• Environmental and animal welfare
• Skill development and livelihood support
• Sports, culture, art & heritage preservation

10. Important Notes

• Trusts are generally non-profit organisations — no profit distribution.
• Trustees cannot misuse funds for personal gain.
• Transparent accounting and governance are essential.
• Trust deed changes require supplementary deed & re-registration (state-specific).

11. Conclusion

Trust Registration is ideal for charitable and welfare activities due to its simple structure, low cost, and legal recognition. With a properly drafted Trust Deed and compliance, a Trust can access donations, operate social programs, and maintain smooth governance.