Step-by-Step Guide to Trust Registration: Build Your Charitable Trust in India

A trust is a legal arrangement where the author (settlor) transfers property to trustees, to be used for the benefit of beneficiaries. In India, charitable trusts play a vital role in promoting education, healthcare, social welfare, and more.
If you’re planning to contribute to society through philanthropy, registering a trust is one of the most effective legal structures. Registration not only gives your entity legal recognition but also enables you to avail income tax exemptions under Section 12A and 80G of the Income Tax Act, 1961.

🧾 Types of Trusts in India
Trusts in India are primarily classified into two categories:
1. Public Trust
Formed for the benefit of the general public or a large section of society.
Can be charitable or religious in nature.
Examples: NGOs, orphanages, old-age homes.

2. Private Trust
Formed for the benefit of one or more individuals.
Usually set up for family or succession planning.
Governed by the Indian Trusts Act, 1882.

🛠️ Step-by-Step Process for Trust Registration
Step 1: Choose a Name for the Trust
The name should be unique and not violate provisions of the Emblems and Names Act, 1950.

Step 2: Draft the Trust Deed
This is the most important legal document.
It must include:
Name and address of the trust
Details of settlor, trustees, and beneficiaries
Objectives of the trust
Mode of trustee appointment and removal
Management structure
Clause on irrevocability of the trust

Step 3: Select Trustees
Minimum 2 trustees (in most states)
Trustees should not be minors or insolvent persons
The trust can have individuals or corporate bodies as trustees

Step 4: Prepare Stamp Paper
The Trust Deed must be executed on non-judicial stamp paper (value varies by state).

Step 5: Register the Trust Deed
Visit the local Sub-Registrar’s Office in the jurisdiction of the registered office.
The settlor and two witnesses must be physically present during registration.

Step 6: Obtain PAN Card for Trust
Mandatory for opening bank accounts and filing income tax returns.

Step 7: Open a Bank Account in the Trust’s Name
Submit PAN, Trust Deed, KYC of trustees, and registration certificate.

Step 8: Apply for 12A and 80G Registration (for Tax Exemption)
Submit application to the Income Tax Department for:
12A – to claim exemption on income earned by the trust
80G – to allow donors to claim tax deduction

📂 Documents Required
Mandatory Documents:
Trust Deed (signed and notarized)
PAN Card of the settlor and trustees
Address proof of registered office (electricity bill, rent agreement, NOC)
ID proof and passport-sized photographs of trustees
Passport (if any foreign trustee is involved)
Resolution to authorize a trustee to apply for PAN and bank account