A trust is a legal arrangement where one person transfers property (the “settlor”) to another person to hold and manage (the “trustee”) for the benefit of a third person or group (the “beneficiary”) or a specific purpose.
Trust Registration is the formal process of legally establishing a trust under various trust registration acts. This registration provides legal recognition, enables tax benefits, and ensures the trust operates as intended.
Types of Trusts Available for Registration in India
Public Trusts: Established for public benefit purposes like education, healthcare, and poverty alleviation.
Private Trusts: Created for specific beneficiaries, often family members.
Religious Trusts: Focused on religious activities and the maintenance of places of worship.
Charitable Trusts: Dedicated to charitable causes like relief for the poor, education, and medical relief.
Eligibility Criteria for Trust Registration
To establish a valid trust in India, you must fulfill these essential requirements:
Trustees
There must be at least 2 trustees to register a trust.
Trustees can be individuals or entities.
Trust Property
The trust must have some property or assets to be managed for the benefit of beneficiaries.
Legal Purpose
The trust’s objectives must be lawful and charitable or religious (in case of charitable trusts) or private and legal (in case of private trusts).
It should not be formed for any illegal or immoral purposes.
Written Trust Deed
A trust deed must be created, specifying the terms, objectives, trustees, and beneficiaries.
This deed is required for registration.
Voluntary Act
The trust must be created by a voluntary act of the settlor (the person creating the trust).
Registration Jurisdiction
The trust must be registered under the Indian Trusts Act, 1882, or relevant state-specific Trust Acts.
Registration is done at the local Registrar’s office having jurisdiction over the trust’s place of operation.
Key Documents Required for Trust Registration
A list of documents you need to have for trust registration:
Original signed trust deed on the prescribed stamp paper
Identity proof of settlor and trustees (Aadhaar, PAN, Voter ID, Passport, or Driving License)
Address proof of settlor and trustees (Aadhaar, recent utility bill, or bank statement)
PAN card application for the trust (to be obtained post-registration)
Passport-size photographs of the settlor and trustees
Registered office address proof (property title deed or lease agreement/NOC)
Details of trust assets (list of movable and immovable properties)
