Trust Registration
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Trust Registration in India – A Complete Guide
If you’re planning to start a charitable organization or social service institution, registering a trust is one of the best ways to ensure legal recognition, transparency, and credibility. A trust is a legal arrangement where property or funds are transferred by one person (the “author” or “settlor”) to another (the “trustee”) for the benefit of a third party (the “beneficiary”).
Trusts are often formed for charitable, educational, medical, religious, or social welfare purposes. In India, trust registration is governed by the Indian Trusts Act, 1882 (for private trusts) and relevant state laws for public charitable trusts.
In this guide, you’ll learn everything you need to know about Trust Registration in India, its process, benefits, documents required, and why Meerad stands out as the best consultancy for trust registration in Patna, Bihar.
1. What is a Trust?
A trust is a legal relationship in which one person (the trustee) holds property for the benefit of another (the beneficiary). It is based on mutual confidence between the author of the trust and the trustee.
There are two main types of trusts in India:
- Private Trusts – Formed for specific individuals or families, governed by the Indian Trusts Act, 1882.
Example: A father creating a trust for his children’s education. - Public Charitable Trusts – Formed for the benefit of the public or a section of society. These are mostly used for social, educational, religious, or philanthropic purposes.Example: A trust created to run an old-age home or orphanage.
Meaning of Trust
The concept of trust was originated with the principles that one person put trust on some other person to carry out his works, it may be to run schools, colleges, universities or to simply look after his properties or children. The person who put trust or who creates trust is called “settlor”. The person on whom responsibility is given is called “Trustees” and person or group of persons for the welfare of which, the trust is called is or are called as “Beneficiary”. Trust can further be classified as “Private Trust” or ‘Public trust”. Private trust is created for some particular person or group of persons whereas public trust is created for the benefit of public as a whole.
How trust is created?
Trust is created by the way putting all terms and conditions on a deed or agreement, in which all details of settlor, trusteee, beneficiary, trust properties, trust funds and trust periods are written. To give trust deed, validity in the eyes of laws, it must be registered with the government authority.
Definition of Trust
Creation of a trust, particularly relating to an immoveable property is also a specie of transfer of property. Trust is defined in section 3 of the Trust Act, 1882 as ” an obligation annexed to the ownership of property and arising out of a confidence reposed in and accepted by the owner, or declared and accepted by him, for the benefit of another or of another and the owner. In simple words it is a transfer of property by the owner to another for the benefit of a third person alongwith or without himself or a declaration by the owner, to hold the property not for himself and another.
2. Why Should You Register a Trust?
Registering a trust gives it legal identity, protects its assets, and allows it to receive grants and tax exemptions. It ensures credibility and makes it easier to open a bank account, acquire property, or raise donations.
Here are some key benefits:
✅ Legal Recognition
A registered trust becomes a legal entity, which can sue or be sued in its name.
✅ Tax Exemptions
Registered charitable trusts can apply for 12A and 80G registration under the Income Tax Act, allowing them and their donors to enjoy tax benefits.
✅ Credibility Among Donors
Donors and government agencies prefer registered trusts while granting funds or donations.
✅ Smooth Property Transfer
Registration ensures that property or assets transferred to the trust are legally recognized.
✅ Perpetual Existence
The trust continues to exist even after the death or resignation of trustees.
3. Eligibility for Trust Registration
Any individual (Indian citizen) who is competent to contract under the Indian Contract Act can create a trust.
A minimum of two trustees is required, though there’s no upper limit.
For charitable trusts, there is no requirement of share capital.
4. Documents Required for Trust Registration
Here’s a list of documents needed for registering a trust:
A. From the Founder/Trustees:
- Aadhar and PAN card of all trustees
- Passport-size photographs
- Address proof (electricity bill, rent agreement, etc.)
- Mobile number and email ID
B. For the Registered Office:
- Ownership proof of property (if owned)
- Rent agreement (if rented)
- NOC (No Objection Certificate) from the property owner
C. Other Documents:
- Trust Deed (main governing document)
- Objectives of the trust
- Details of the trust’s name, address, and activities
5. Steps Involved in Trust Registration
Let’s break down the trust registration process step-by-step:
Step 1 – Choose a Name for the Trust
Select a unique name that represents your trust’s vision and is not identical to any existing trust or government body.
Step 2 – Prepare the Trust Deed
The Trust Deed is the foundation of the trust. It includes:
- Name and address of the trust
- Objectives of the trust
- Details of trustees and their powers
- Rules for adding or removing trustees
- Manner of utilizing funds and property
This document should be drafted on non-judicial stamp paper (value depends on state laws).
Step 3 – Decide the Number of Trustees
A minimum of two trustees are required. One will act as the “Managing Trustee” or “Chairperson”.
Step 4 – Register the Trust Deed
Visit the local Sub-Registrar Office of your jurisdiction with all documents.
All trustees and witnesses must be physically present at the time of registration.
Step 5 – Obtain the Trust Registration Certificate
Once the registrar verifies all details, the Trust Deed is registered, and a Registration Certificate is issued.
Step 6 – Apply for PAN, 12A & 80G
After registration, apply for:
- PAN (Permanent Account Number)
- 12A Registration (to claim income tax exemption)
- 80G Registration (to allow donors to claim tax deduction)
6. Contents of a Trust Deed
A well-drafted Trust Deed usually contains:
- Name and address of the trust
- Details of the trustees
- Objectives of the trust
- Details of the trust property
- Rules regarding meetings, quorum, and decision-making
- Tenure and powers of trustees
- Accounts and audit provisions
- Dissolution clause
7. Timeframe for Trust Registration
The entire process generally takes around 10 to 15 working days, depending on the completeness of documents and local authority processing time.
8. Common Mistakes to Avoid
- Choosing a name identical to an existing trust
- Missing signatures of trustees or witnesses on the deed
- Not including the trust’s objectives clearly
- Not applying for PAN and tax registrations on time
A small mistake can delay the registration process or cause future compliance issues.
9. Difference Between Trust, Society, and Section 8 Company
| Particulars | Trust | Society | Section 8 Company |
|---|---|---|---|
| Governing Act | Indian Trusts Act, 1882 | Societies Registration Act, 1860 | Companies Act, 2013 |
| Members Required | Minimum 2 Trustees | Minimum 7 Members | Minimum 2 Directors |
| Area of Operation | State-specific | State/National | Nationwide |
| Control | Trustees | Managing Committee | Board of Directors |
| Compliance | Low | Moderate | High |
| Suitable For | Charitable, religious, educational institutions | NGOs, clubs, cultural groups | Large-scale NGOs, social enterprises |
10. Why Choose Meerad for Trust Registration in Patna, Bihar
When it comes to registering a trust in Bihar, Meerad stands as a leading Chartered Accountant and Business Consulting firm that helps you through every step—from documentation to final certification.
Here’s what makes us the best choice:
✅ End-to-End Assistance
From drafting the Trust Deed to filing with the Registrar, we handle everything smoothly.
✅ Expert Legal & Financial Team
Our experts include Chartered Accountants, Company Secretaries, and Legal Advisors who ensure your trust complies with all laws.
✅ Quick & Hassle-Free Process
We value your time. Our team completes the process quickly with zero errors.
✅ Affordable Pricing
We offer cost-effective packages that fit your budget without compromising on quality.
✅ Post-Registration Support
Our work doesn’t stop at registration. We help you with:
- PAN & TAN registration
- 12A & 80G registration
- Annual compliance and audit
- NGO accounting and financial management
✅ Local Expertise
Being based in Patna, Bihar, we have in-depth knowledge of local laws and government procedures.
11. Why a Registered Trust is a Smart Choice
A registered trust gives your charitable intentions a legal foundation, helps build public confidence, and allows you to create a sustainable impact on society. Whether you want to start an NGO, a hospital, or an educational institution, trust registration is the first step toward building a transparent and accountable organization.
12. Final Thoughts
Forming a trust is more than a legal formality—it’s about creating a structure that ensures your social vision is carried out transparently and effectively. With proper registration, you open doors to tax benefits, funding opportunities, and long-term credibility.
If you’re ready to start your trust registration journey, let Meerad handle it for you.
Contact Us Today
📞 Call: +91-85400-99000
📧 Email: info@meerad.in
At Meerad, we make your trust registration process simple, quick, and reliable—so you can focus on what truly matters: serving society.