Doc Summary
Overview
A Trust is a legal arrangement where one or more individuals (called Trustees) hold and manage property or assets for the benefit of others or for a charitable purpose. Trusts are registered under the Indian Trusts Act, 1882 (for private trusts) or the Charitable and Religious Trusts Act, 1920 (for public or charitable trusts).
Trust registration gives the entity legal recognition, allowing it to operate transparently, receive donations, own property, and apply for tax exemptions.
Eligibility / Who Should Apply
- Individuals or groups engaged in charitable, educational, religious, or social welfare activities
- Families creating private trusts for inheritance or property management
- NGOs and charitable organizations seeking formal recognition
- Minimum of two trustees (one settlor and one trustee required)
Key Features
- Governed by a Trust Deed, which defines objectives, powers, and management
- Operates as a non-profit entity for public or private benefit
- Managed by trustees with fiduciary responsibility
- Eligible for government recognition and income tax exemptions
- Perpetual succession and independent legal identity
Step-by-Step Process
- Draft the Trust Deed: Clearly outline the name, objectives, address, details of the trustees, powers, and management process.
- Prepare Supporting Documents: Collect ID proofs and address proofs of the settlor and trustees, along with property ownership proof (if applicable).
- Stamping and Notarization: Execute the Trust Deed on appropriate stamp paper value as per the state’s Stamp Act.
- Submission to Sub-Registrar: Submit the Trust Deed and supporting documents to the local Sub-Registrar Office for registration.
- Verification and Registration: Trustees appear before the registrar for verification and signing. Once approved, a Registered Trust Deed is issued.
Documents Required
- Trust Deed (in duplicate, signed by settlor and trustees)
- PAN and Aadhaar of settlor and trustees
- Passport-size photographs of all trustees
- Proof of registered office (Rent Agreement / Ownership Document / NOC)
- Utility bill for address verification
- Self-declaration by trustees accepting responsibilities
Timeline
The process generally takes 7–15 working days, depending on the Sub-Registrar’s schedule and document verification.
Post-Registration Requirements
- Obtain PAN for the trust
- Open a bank account in the trust’s name
- Maintain books of accounts and records of donations received
- File annual statements with the relevant authorities
- Apply for 12A and 80G registration to claim tax exemptions on donations
Penalties for Non-Compliance
- Failure to register or maintain proper accounts can attract penalties under state and income tax laws
- Misuse of trust property or deviation from objectives may lead to cancellation of registration
- Non-renewal of 12A or 80G can affect tax exemption benefits
Kanoons Service
Kanoons Law & Tax Consultants Pvt. Ltd. offers comprehensive Trust Registration services for charitable, religious, and private purposes.
Our services include:
- Drafting of customized Trust Deed with clear objectives and management structure
- Assistance in document preparation and notarization
- Coordination with the Sub-Registrar Office for registration
- Guidance on PAN application and compliance setup
- Post-registration support for 12A, 80G, and other benefits
Kanoons ensures your trust is registered legally, with clear governance and full compliance with Indian laws.
Why Choose Kanoons
- Professionally drafted Trust Deed tailored to your goals
- Quick, transparent, and affordable registration process
- End-to-end guidance from registration to tax exemption filing
- Complete assistance for both private and charitable trusts
- Trusted by NGOs, social organizations, and private institutions across India
