Trust Registration in India
Vetri Audit Services – Simplifying Your Legal Compliance
What is a Trust ?
A Trust is a legal entity where the Author/Settlor transfers property to a Trustee, who manages it for the benefit of a Beneficiary. Trusts in India can be either private (for individuals or families) or public (for charitable or religious purposes).
- Private Trusts are governed by the Indian Trusts Act, 1882
- Public Trusts are regulated by various state laws, Income Tax Act, and charitable trust regulations
Key Elements of a Trust
| Term | Meaning |
|---|---|
| Settlor/Author | Person who creates the trust |
| Trustee | Person or body that manages the trust property |
| Beneficiary | Person(s) benefiting from the trust |
| Trust Property | Assets transferred to the trust (cash, land, shares, etc.). |
| Trust Deed | Legal document stating purpose, powers, rules, and beneficiaries of the trust |
Type of Trusts
Private Trust
- Created for the benefit of specific individuals or families
- Governed by Indian Trusts Act, 1882
Public Trust
- Created for public, religious, or charitable purposes
- Governed by various state-specific and tax laws
What is Trust Registration?
Trust registration is the formal process of legally recording the trust deed with the local registrar. This gives the trust legal standing to:
- Own property
- Operate a bank account
- Apply for tax exemptions
- Receive grants and donations
Types of Trusts in India
| Type | Purpose | Governing Law |
|---|---|---|
| Private Trust | Specific individuals/family | Indian Trusts Act, 1882 |
| Public Trust | Charitable or religious objectives | State Trust Acts, Income Tax Act, etc. |
Documents Required for Trust Registration
- Trust Deed (on appropriate stamp paper – varies by state)
- PAN and Aadhaar of settlor and trustees
- Passport-size photographs
- Proof of registered office address (e.g., electricity bill, NOC)
- Additional affidavits/declarations (based on state requirements)
Step-by-Step Trust Registration Process
Optional (but Recommended) Post-Registration Steps
| Task | Purpose |
|---|---|
| PAN & TAN Application | Mandatory for financial and tax compliance |
| 12AB Registration | Enables income tax exemption under IT Act |
| 80G Registration | Donors can claim tax benefits |
| Bank Account Setup | Open account in trust's name |
| FCRA Registration | FCRA Registration Required to receive foreign donations (if applicable) |
Timelines for Trust Registration
| Stage | Estimated Time |
|---|---|
| Drafting & Deed Executionn | Drafting & Deed Execution 2–4 working days |
| Registration with Registrar | 7–20 working days |
| PAN, 12AB, 80G (Post Registration) | 1–2 months after trust registration |
Benefits of Registering a Trust
- Legal recognition of the trust
- Structured governance and asset protection
- Eligible for government schemes and grants
- Credibility enhancement for fundraising and donations)
- Tax exemptions under applicable laws
Why Choose Vetri Audit Services?
At Vetri Audit Services, we specialize in hassle-free Trust Registration Services with complete legal support and documentation. From drafting trust deeds to getting your 12AB and 80G approvals, our expert team ensures a smooth and timely process.
Typical Registration Time: Less than 30 Days
(Timelines may vary based on government processing time)
Contact Us
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