Trust Registration

Understanding Trusts:

• Governed by: The Indian Trusts Act, 1882 (for Private Trusts) and State-specific Public Trust Acts (for Public Trusts).
• Purpose: Charitable, religious, or social causes.
• Key Entities in a Trust:
• Author/Settlor of the Trust – The individual who creates the trust.
• Trustees – Individuals responsible for managing the trust.
• Beneficiaries – The people for whom the trust is created.

•  What is a Trust Deed?

• The Trust Deed is the most important legal document that defines:

  • Objectives of the Trust.
  • Duties & powers of the trustees.
  • Mode of operation & management.
  • Tenure & dissolution process.

  • Process of Trust Registration:

  • • Step 1: Drafting the Trust Deed Clearly mention the name, address, objectives, and roles of trustees.
    • Step 2: Choosing Trustees & Settlor Minimum two trustees are required.
    • Step 3: Getting the Trust Deed Notarized Must be signed in the presence of two witnesses.
    • Step 4: Submitting Documents to the Registrar

    Documents Required:

    • Trust Deed (signed and notarized).
    • Identity & Address Proof of trustees (Aadhaar, PAN, Passport, etc.).
    • Address Proof of Trust Office (electricity bill, rent agreement, etc.).
    • Step 5: Trust Registration Certificate Issuance Once approved, the Registrar of Trusts issues a Trust Registration Certificate.

    • Tax Benefits for Registered Trusts:

    • 12A Registration – Exemption from income tax.
    • 80G Registration – Donors can claim tax deductions.
    • FCRA Registration – Eligibility to receive foreign contributions.

    Society Registration

    • Governed by: The Societies Registration Act, 1860.
    • Purpose: Scientific, charitable, literary, and educational activities.
    • Minimum Members Required: Seven or more persons.

    Key Compliance:

    • Memorandum of Association (MoA) & Rules & Regulations must be drafted.
    • Registered under the respective state authority.
    • Annual compliance filings with the Registrar of Societies.

    • Section 8 Company Registration

    • • Governed by: The Companies Act, 2013.
      • Purpose: Non-profit businesses, including social enterprises.
      • Minimum Members Required: Two for a private limited & three for a public limited company.

      Key Compliance:

      • Approval from the Registrar of Companies (RoC).
      • Memorandum of Association (MoA) & Articles of Association (AoA) filing.
      • Annual filings & tax compliance under the Companies Act.