TRUST REGISTRATION

A Trust is one of the most popular forms of non-profit organization in India, primarily created for charitable, religious, educational, or social welfare purposes. It is governed by the Indian Trusts Act, 1882 (for private trusts) and relevant state-specific laws for public charitable trusts.

Features of Trust

• Simple Formation
• Separate Legal Identity
• Perpetual Existence
• Asset Protection
• Non-Profit Structure

Types of Trusts

1. Private Trust

• Created for benefit of specific individuals or families
• Governed mainly by the Indian Trusts Act, 1882
• Example: Family asset management trust

1. Public Trust

• Created for public charitable or religious purposes
• Regulated by state-specific trust acts
• Eligible for NGO & CSR activities

Benefits of Trust

• Easy and quick registration process
• High credibility in charitable activities
• Eligible for tax exemptions (12A & 80G registration)
• Suitable for family and religious trusts
• Less compliance compared to companies
• Flexible management structure

Minimum requirement for Trust registration

• Minimum 2 trustees (no maximum limit in most cases)
• Indian residents preferred (varies by state)
• Trust deed must be prepared
• Registered office address in India