A Trust is one of the most flexible and secure legal structures available in India, utilized both for philanthropic goals and private wealth management. Unlike a corporate entity, a trust is fundamentally a legal fiduciary arrangement.
It is created when the owner of a property (the Settlor) legally transfers the ownership of that property to a second party (the Trustee) to hold and manage it for the benefit of a third party (the Beneficiary). Whether your objective is to run a charitable NGO, manage family wealth, or plan for estate succession, registering a trust ensures your assets are protected and utilized exactly as you intend.
It is a common misconception that all trusts are the same. Indian law strictly categorizes them into two distinct types based on their purpose and governing laws:
Formed for the benefit of the general public (e.g., education, poverty relief, or medical assistance). A public trust is the most popular structure for starting a non-profit organization (NGO).
Governing Law
State-specific laws (e.g., Maharashtra Public Trusts Act, 1950) or Registration Act.
Created for the benefit of specific individuals or families, often used for wealth management and succession planning.
Governing Law
Strictly governed on a national level by the Indian Trusts Act, 1882.
A valid trust cannot be formed by a single person. It requires the following distinct parties:
The individual who creates the trust and transfers their movable or immovable property into it. Must be a competent adult capable of entering into a contract.
The individuals legally appointed to manage the trust's assets and execute its objectives. Minimum of two required. Settlor can be one, but not the sole trustee.
The people, family members, or public sector that ultimately receives the benefits generated by the trust's assets.
Once registered, the trust becomes a distinct legal arrangement that continues to operate regardless of the death or exit of the Settlor. It legally shields the transferred assets from personal liabilities.
Registered Public Charitable Trusts can apply for 12A and 80G certificates. Section 12A exempts the trust's income from taxation, while Section 80G allows donors to claim tax deductions on contributions.
While a trust can generate income, public trusts strictly operate on a non-profit basis. The income generated must be wholly applied toward the trust's charitable objectives (no personal gain for trustees).
To register a trust before the local Sub-Registrar, the following documentation is strictly required.
Our legal team ensures your trust is formed flawlessly and complies with all state and central regulations:
We custom-draft the foundational deed to clearly define the trust's name, objectives, rules, and the specific powers/duties of the trustees.
We custom-draft the foundational deed defining the trust's rules.
The drafted deed must be printed on non-judicial stamp paper. The stamp duty value varies significantly depending on your state's jurisdiction and property value.
The Settlor, Trustees, and witnesses physically appear before the local Sub-Registrar who verifies the documents and officially registers the deed.
Settlor, Trustees, and witnesses appear before the Sub-Registrar for official registration.
Once registered, we apply for the trust's official PAN card, allowing you to open a dedicated trust bank account.
For charitable trusts, we file the online application (Form 10A) with the Income Tax Department to secure your mandatory tax exemption certificates.
We file for mandatory tax exemption certificates.