Why Register a Trust?

Under the Public Trust Act, which is applicable across various states in India, registering a trust is mandatory in the following cases:

• When the trust is established for charitable or religious purposes

• When there is a transfer of immovable property to the trust’s name

A registered trust is also eligible for tax benefits as specified under the Income Tax Act, particularly Section 12A (for income exemption) and Section 80G (for donor tax benefits).

Benefits of Trust Registration:

• Legal recognition under Indian law

• Eligibility for income tax exemption under Sections 12A and 80G

• Enhanced credibility with donors, government bodies, and financial institutions

• Transparency in managing public donations and grants

Establishment of a Trust

To establish a trust, the following components are required:

• Author / Founder / Settlor: The individual who creates the trust

• Managing Trustee(s): Responsible for the day-to-day administration

• Other Trustees: Support the governance and oversight of the trust

• Maximum Number of Trustees: The Board of Trustees shall consist of no more than 21 members to form a valid quorum

Trust Compliances Post Registration

After registration, the trust must fulfill several statutory and financial obligations:

• ✅ Obtain PAN card for the trust

• ✅ Maintain proper books of accounts and financial records

• ✅ File annual Income Tax returns

• ✅ Apply for a Shops and Establishment License (if employing staff)

• ✅ Register for Professional Tax (if applicable)

• ✅ Obtain GST Registration (if applicable based on turnover)

Tax Exemption Eligibility: A Common Misconception

There is a common belief that all charitable trusts are automatically exempt from taxes. However, this is not true. Like any other legal entity, a trust is liable to pay taxes unless it has obtained:

• Section 12A Registration – for income tax exemption on surplus income

• Section 80G Certification – allowing donors to claim deductions on donations

These registrations must be secured from the Income Tax Department to lawfully enjoy the tax benefits.

Online Trust Registration – A Detailed Process

Vakilsearch offers a streamlined and efficient solution for registering a trust online, enabling individuals and organizations to complete the process with ease and legal accuracy. Here’s a step-by-step guide to how it works:

Step 1: Drafting the Trust Deed

The process begins with the Author or Settlor of the Trust preparing a legal document called the Trust Deed (also known as a Deed of Trust). This deed serves as the foundation of the trust and must include the following key details:

• Name and address of the trust

• Name(s) and address(es) of the settlor and trustees

• Objectives of the trust

• Powers, duties, and responsibilities of the trustees

• Mode of appointment, removal, and succession of trustees

• Guidelines for managing trust assets

• Details of the beneficiaries (in case of a private trust)

• Duration and governance structure of the trust

Step 2: Submission of the Registration Application

Once the Trust Deed is finalized and duly signed by the settlor and trustees (usually in the presence of two witnesses), the next step involves submitting the Trust Registration Application to the Registrar of Trusts.

The application must include:

• The original Trust Deed and a few photocopies

• Photographs and ID proofs of all trustees and the settlor

• PAN Card of the trust (if already obtained)

• Address proof of the registered office of the trust

Step 3: Selection of Jurisdiction

The jurisdiction for trust registration is typically determined by the location of the trust’s registered office. The application should be submitted to the Registrar of Trusts in that specific area.

Step 4: Verification and Certificate of Registration

After submission, the Registrar will verify the documents and may call the trustees and settlor for an in-person verification or online appearance (in some states). Once verified, the Certificate of Trust Registration is issued, officially recognizing the trust as a legal entity.

Why Choose Vakilsearch for Online Trust Registration?

• ✔ Expert legal drafting of the Trust Deed

• ✔ End-to-end online documentation support

• ✔ Liaison with the Registrar of Trusts

• ✔ PAN & tax exemption application assistance (Section 12A & 80G)

• ✔ Transparent pricing and quick turnaround

Documents Required for Trust Registration

To successfully obtain a Trust Registration Certificate, the following documents must be submitted at the time of registration:

1. Trust Deed (Fully Drafted)

   • A properly prepared and signed Trust Deed, outlining the objectives of the trust, roles of trustees, governance structure, and other key provisions.

2. Proof of Registered Office

   • Any one of the following:

     • Rental Agreement along with the landlord’s No Objection Certificate (NOC), or

     • Ownership Document (if the premises is owned by the trust or the founder)

3. Identity Proof of the Founder / Settlor

   • Valid government-issued ID such as:

     • Aadhaar Card

     • PAN Card

     • Passport

     • Voter ID

     • Driving License

4. Identity Proofs of Two Witnesses

   • Any government-recognized ID of two individuals who will witness the signing of the Trust Deed.

✅ Pro Tip:

Ensure that all documents are self-attested and that originals are carried for verification (if physical submission is required in your jurisdiction). Digital submissions may require scanned, high-resolution copies.

Contents of a Trust Deed

The Trust Deed is the most vital legal document in the formation of a trust. It defines the purpose, structure, and governance of the trust, serving as a legal blueprint that guides its operations from inception to dissolution.

Below are the essential clauses typically included in a standard Trust Deed:

1. Name of the Trust

Specifies the official name under which the trust will operate.

2. Registered Office of the Trust

Indicates the physical address of the trust’s registered office, which determines its jurisdiction for registration and legal compliance.

3. Area of Operation

Defines the geographical scope in which the trust will carry out its activities (local, state-wide, national, or international).

4. Objectives of the Trust

Clearly outlines the mission, vision, and purpose of the trust—whether charitable, educational, medical, religious, or otherwise.

5. Details of the Author/Settlor

Includes the name, address, and personal details of the individual establishing the trust.

6. Corpus or Assets of the Trust

Describes the initial capital or property endowed to the trust by the settlor to begin its operations.

7. Details of the Board of Trustees

Provides names, designations, and roles of the trustees responsible for managing the trust.

8. Quorum and Terms of Trusteeship

Specifies:

• The minimum number of trustees required to conduct official meetings (quorum)

• Their qualifications, tenure, and conditions for appointment or removal

9. Powers and Functions of the Trustees

Outlines the authority, responsibilities, and decision-making powers of the Managing Trustee and other members of the board.

10. Amendment and Dissolution Clauses

Details the procedures for:

• Amending the Trust Deed in the future

• Closing or dissolving the trust

• Handling of assets upon dissolution

• Applicability of the relevant Trust Acts and legal provisions

A carefully drafted Trust Deed not only ensures smooth functioning but also enhances the legal credibility of the trust, especially when applying for tax exemptions, bank accounts, or foreign contributions.

Accura Tax Solutions – Trust Registration Made Simple

We offer comprehensive support for Trust Registration, guiding you through every step of the process with expert legal and tax assistance. Whether you’re registering a new trust or transitioning an existing one, Accura Tax Solutions ensures a smooth and compliant journey.

Our Simple 6-Step Process

1. ✅ Support in Transitioning a Trust Registration

   • Our experts help you move from informal or partial setups to fully compliant registered trusts.

2. 📝 Purchase a Plan for Expert Assistance

   • Choose a suitable plan based on your needs—affordable, transparent pricing for individual and organizational trusts.

3. ❓ Add Queries Regarding the Conversion

   • Have specific questions? Share them with our experts for personalized answers and legal clarity.

4. 📁 Provide Documents to Accura Tax Solutions Expert

   • Submit required documents like the draft trust deed, ID proofs, address proof, and more. We’ll guide you on what’s needed.

5. 🔧 Complete All Other Required Actions

   • From notarization to Registrar appointments—we’ll coordinate every compliance and legal step.

6. 🎯 Get Your Work Done!

   • Sit back and relax while we handle the registration process end to end. You’ll receive your Trust Registration Certificate hassle-free.

💼 Why Accura Tax Solutions?

• Experienced professionals in trust and tax laws

• End-to-end legal documentation and filing support

• Transparent pricing with no hidden costs

• Fast, reliable, and compliant process

Ready to register your trust the right way?
Let Accura Tax Solutions take care of the paperwork, compliance, and peace of mind.