Overview

A trust is a legal arrangement where a trustee holds and manages property for beneficiaries. Trusts are commonly formed for charitable work and can apply for tax exemptions. Public trusts must be registered with the local Sub-Registrar’s office.

Documents Required

• Trust Deed (signed and notarized)

• ID & address proof of trustees and settlor (Aadhaar, PAN, passport, etc.)

• Passport-sized photographs

• Proof of registered office address (utility bill/rent agreement/NOC)

• Stamp paper for trust deed execution (value depends on state rules)

Registration Process

1. Draft Trust Deed – Includes objectives, trustee powers, rules, etc.

2. Purchase Stamp Paper – As per state laws for execution of trust deed.

3. Register with Sub-Registrar – All trustees sign the deed in front of the registrar.

4. Obtain PAN & Apply for 12A/80G (for tax exemption if charitable).

5. Open Bank Account in the trust’s name

Benefits

1. Legal Recognition of charitable work

2. Tax Exemption on donations and income (post 12A & 80G registration)

3. Credibility for government grants and public donations

4. Perpetual Existence – Not affected by death of trustees

Eligibility

• Minimum two trustees

• Charitable, religious, or social objective

• Settlor (founder) must be Indian

• Physical registered address required

• Must not be for profit distribution