How to Register a Trust in India (Complete Guide)

A Trust is one of the oldest and simplest legal structures for charitable, religious, and social welfare activities in India. Whether you want to run a school, manage a temple, operate a healthcare initiative, set up a scholarship fund, or organize community development programs, registering a Trust provides a straightforward legal framework to receive donations, own property, and carry out your mission.

India's trust law framework consists of the Indian Trust Act 1882 for private trusts and various state-specific Public Trust Acts for charitable and religious trusts. This guide covers the complete registration process for both public and private trusts, including trust deed drafting, stamp duty, Sub-Registrar registration, Charity Commissioner requirements, and post-registration steps like obtaining 12A, 80G, and PAN.

What is a Trust

A Trust is a legal arrangement where one person (the Author or Settlor) transfers property, money, or assets to another person (the Trustee) to hold and manage for the benefit of specified persons (the Beneficiaries) or for a charitable purpose.

Key Elements of a Trust

• Author (Settlor): The person who creates the trust and transfers the initial property or funds to it. The author establishes the trust's purpose and sets the terms through the trust deed
• Trustee: The person or persons appointed to hold, manage, and administer the trust property according to the terms of the trust deed. Trustees have a fiduciary duty to act in the interest of the beneficiaries or the trust's charitable objects
• Beneficiary: The person or persons (or the general public, in case of a charitable trust) for whose benefit the trust property is held. Beneficiaries have the right to benefit from the trust as specified in the deed
• Trust Property: The assets, money, or property transferred to the trust by the author. This can include cash, securities, immovable property, or any other lawful asset
• Trust Deed: The written legal document that creates the trust, defines its objects, names the trustees and beneficiaries, and sets the rules for trust management

Types of Trusts in India

Public Trust

A Public Trust is created for the benefit of the general public or a significant section of the public. Its objects are charitable, educational, medical, religious, or for social welfare. Public trusts are subject to state-specific Public Trust Acts and are registered with the Charity Commissioner in applicable states.

Examples: Educational trusts running schools, religious trusts managing temples and gurudwaras, healthcare trusts operating hospitals, trusts providing scholarships and financial aid, trusts for environmental conservation.

Private Trust

A Private Trust is created for the benefit of specific, identifiable individuals - typically family members. It is governed by the Indian Trust Act 1882 and is primarily used for wealth management, succession planning, and asset protection.

Examples: Family trusts for wealth distribution, trusts for providing for minor children or elderly parents, trusts for managing ancestral property, trusts for structured inheritance.

Why Register a Trust

• Legal recognition: Registration provides the trust with a legally recognized identity that can own property, open bank accounts, and enter into contracts
• Tax exemption: Registered trusts can apply for 12A and 80G registrations, making their income tax-exempt and providing tax benefits to donors
• Donor confidence: A registered trust with a trust deed and Charity Commissioner registration builds credibility with individual donors, corporate donors, and government agencies
• Government grants: Many government schemes and grants require the organization to be a registered charitable trust or society
• FCRA eligibility: To receive foreign donations, the organization must be registered and must separately obtain FCRA registration from the Ministry of Home Affairs
• CSR funding: Registered trusts with CSR registration (Form CSR-1) can receive CSR funds from companies under Section 135 of the Companies Act
• Property protection: Registration ensures the trust property is legally protected and cannot be misappropriated by individuals

Documents Required for Trust Registration

Step 1: Choose a Name and Define Objects

Naming Guidelines

• The name should reflect the charitable purpose of the trust
• Common suffixes: Trust, Charitable Trust, Foundation, Welfare Trust, Education Trust
• Avoid using words like Government, National, State without permission
• Do not use names identical to existing registered trusts, companies, or trademarked names
• Keep the name simple, meaningful, and easy to remember

Defining Objects

Clearly define the trust's charitable objects. Common categories include:

• Education: Running schools, providing scholarships, educational research, vocational training
• Healthcare: Operating hospitals, clinics, health camps, medical research
• Social welfare: Poverty alleviation, women empowerment, child welfare, rural development
• Religion: Managing religious institutions, promoting religious education, organizing festivals
• Environment: Conservation, tree plantation, water management, wildlife protection
• Culture and art: Promoting art, music, dance, literature, cultural heritage preservation

Step 2: Select Trustees

Trustees are the backbone of a trust. They are responsible for managing the trust property, carrying out its objects, making financial decisions, and ensuring compliance.

Trustee Requirements

• Minimum: 2 persons (1 author + 1 trustee, or the author can also be a trustee with at least 1 additional trustee)
• No statutory maximum: Practically, 3 to 7 trustees works best for governance and decision-making
• Any Indian citizen of sound mind can be a trustee
• Minors cannot be trustees but can be beneficiaries
• NRIs and foreign nationals can be trustees of private trusts but there may be restrictions for public trusts depending on the state

Trustee Governance

The trust deed should clearly specify:

• How new trustees will be appointed (by remaining trustees, by a specific authority, or by election)
• Grounds for removal of a trustee (misconduct, absence, bankruptcy, conflict of interest)
• Meeting frequency and quorum requirements for trustee meetings
• Decision-making process (unanimous, majority vote, or managing trustee authority)
• Designation of a Managing Trustee who handles day-to-day affairs and banking operations

Step 3: Draft the Trust Deed

The Trust Deed is the constitutional document of the trust. It must be comprehensive, legally sound, and clearly articulate the trust's purpose, governance structure, and operational rules.

Essential Clauses in a Trust Deed

1. Name of the trust: Full legal name of the charitable trust
2. Name and details of the Author: Full name, father's name, age, address, and occupation of the person creating the trust
3. Names and details of all trustees: Full names, addresses, and designations (Chairperson, Managing Trustee, Secretary, Treasurer)
4. Registered office address: The address where the trust will be headquartered
5. Objects of the trust: Detailed description of the charitable purposes for which the trust is created
6. Trust property: Details of the initial property, funds, or assets being transferred to the trust
7. Irrevocability clause: Statement that the trust is irrevocable (required for tax exemption under 12A)
8. Non-profit clause: Declaration that income and property will be applied solely for charitable objects and no portion will benefit any trustee personally
9. Power of trustees: Authority to manage property, accept donations, invest funds, open bank accounts, hire staff, enter contracts
10. Meeting procedures: Frequency of trustee meetings, quorum, and minutes recording
11. Financial management: Rules for fund management, investment policy, expenditure authorization, and accounting
12. Amendment clause: Procedure for amending the trust deed (typically requires resolution of all or majority of trustees)
13. Dissolution clause: Upon dissolution, remaining assets transfer to another charitable organization with similar objects

Step 4: Pay Stamp Duty and Execute the Deed

Stamp Duty on Trust Deeds

The trust deed must be printed or written on non-judicial stamp paper of the value prescribed by your state's Stamp Act. Stamp duty rates vary significantly by state.

Execution Process

1. Purchase non-judicial stamp paper of the applicable value from an authorized vendor or through e-Stamp
2. Print the trust deed on the stamp paper or attach the stamp paper to the deed
3. The Author and all trustees must sign on every page and in full on the last page
4. Two witnesses must sign the deed with their names, addresses, and dates
5. Optionally, get the deed notarized for additional legal validity (recommended)

Step 5: Register with the Sub-Registrar

Register the trust deed with the Sub-Registrar of Assurances in the district where the trust's registered office is located.

Registration Process

1. Visit the office of the Sub-Registrar in your district
2. Submit the original executed trust deed with stamp paper
3. Submit identity and address proofs of the author, all trustees, and witnesses
4. All parties (author, trustees, and witnesses) may need to be present for verification or can authorize through a Power of Attorney
5. Pay the registration fee (typically 1,000 to 5,000 rupees based on the state)
6. The Sub-Registrar verifies the deed and enters it in the registration record
7. A certified copy of the registered deed is returned, usually within 3 to 7 working days

Step 6: Register with the Charity Commissioner (Public Trusts)

If you are forming a Public Charitable Trust, registration with the Charity Commissioner is mandatory in several states.

States Requiring Charity Commissioner Registration

• Maharashtra: Under the Bombay Public Trust Act 1950
• Gujarat: Under the Bombay Public Trust Act 1950 (as adopted)
• Rajasthan: Under the Rajasthan Public Trust Act 1959
• Madhya Pradesh: Under the M.P. Public Trust Act 1951

In states without a specific Public Trust Act, registration with the Sub-Registrar is sufficient. However, the trust should still apply for 12A and 80G registration for tax benefits.

Charity Commissioner Registration Process

1. Submit the registered trust deed (certified copy)
2. Fill the prescribed application form with details of trustees, objects, and activities
3. Submit identity proofs of all trustees
4. Provide details of trust property and funds
5. Pay the applicable fee (varies by state)
6. The Charity Commissioner examines the application and issues a registration number
7. Processing usually takes 7 to 15 working days

Step 7: Apply for PAN and Open a Bank Account

PAN Card Application

1. Visit onlineservices.nsdl.com or the UTIITSL portal
2. Select Applicant Category as "Trust"
3. Fill Form 49A with trust name, address, and managing trustee details
4. Upload registered trust deed, identity proof of managing trustee
5. Pay 107 rupees
6. PAN is issued within 7 to 10 working days

Bank Account Opening

Open a savings or current account in the trust's name at any bank. Submit:

• Registered Trust Deed (certified copy)
• PAN Card of the trust
• PAN and Aadhaar of all trustees
• Resolution authorizing specific trustees to operate the bank account
• Address proof of the trust (rent agreement, utility bill)
• Photographs of authorized signatories

Step 8: Apply for 12A and 80G Registration

These are the most important post-registration steps for any charitable trust that wants tax exemption and donor benefits.

12A Registration (Tax Exemption)

• Makes the trust's income exempt from income tax when applied towards charitable objects
• Apply using Form 10A on the Income Tax e-filing portal
• First-time registration is provisional for 5 years
• Must apply for permanent registration (Form 10AB) before the 5-year period expires
• Without 12A, the trust's income is taxed at the maximum marginal rate of 30 percent

80G Registration (Donor Tax Benefit)

• Allows donors to claim 50 percent or 100 percent tax deduction on donations
• Applied for along with 12A using Form 10A
• Makes the trust attractive to individual and corporate donors
• Essential for fundraising campaigns and institutional funding

Annual Compliance for Charitable Trusts

Cost Summary: Trust Registration in 2026

Common Mistakes to Avoid

1. Vague or incomplete objects clause: The objects must be specific enough to demonstrate genuine charitable intent but broad enough to cover future activities. A vague deed can create problems during 12A and 80G registration
2. Not including irrevocability clause: For 12A and 80G registration, the trust must be irrevocable. If the deed does not explicitly state this, the Income Tax Department may reject the application
3. Missing dissolution clause: The deed must specify that upon dissolution, remaining assets go to another charitable organization with similar objects. This is a requirement for 12A registration
4. Using insufficient stamp paper: Using stamp paper of lower value than prescribed makes the deed legally deficient. Check your state's stamp duty for trust deeds before purchasing
5. Not registering with the Charity Commissioner: In states like Maharashtra and Gujarat, this registration is mandatory for public trusts. Operating without it can attract penalties
6. Delaying 12A and 80G applications: Without these registrations, the trust's income is taxable and donors cannot claim deductions. Apply immediately after trust registration
7. Not maintaining the 85 percent spending rule: Charitable trusts must apply at least 85 percent of their income towards charitable objects each year. Accumulation without proper Form 10 approval can result in taxable income
8. Poor trustee governance: Not holding regular meetings, not maintaining minutes, and having a single trustee control all operations leads to accountability gaps and can create legal problems

Conclusion

A Trust is the simplest, fastest, and most affordable way to set up a charitable, educational, or religious organization in India. With just 2 persons, a well-drafted trust deed, and registration with the Sub-Registrar and Charity Commissioner, your trust can be operational in 7 to 15 days at a cost of 5,000 to 15,000 rupees.

The key steps are: defining your charitable objects, drafting a comprehensive trust deed on appropriate stamp paper, registering with the Sub-Registrar and Charity Commissioner (where applicable), obtaining PAN and a bank account, and applying for 12A and 80G tax registrations. These registrations unlock tax exemption for the trust and tax benefits for donors, which are essential for sustainable fundraising.

Whether you are starting a small community initiative or setting up a charitable organization that will grow over time, a registered trust gives you the legal foundation to operate transparently and effectively. If you need assistance with trust deed drafting, registration, or setting up your tax compliance, our team at IncorpX can guide you through every step.