Trust Registration in Delhi

Trust Registration is most Common type of NGO Registration that involve less costing and compliance’s. There are two types of trusts – Private and Public. A private trust is formed for the benefit of a group of people. Public trust is formed for the benefit of the general public. Register your Trust in Delhi @ Rs.5999*/- . To Start The Process Schedule telephonic appointment with our experts.

Register Your Trust @ Rs5,999

What is Charitable Trust

Before we dive into the process of registering a charitable trust in Delhi, it is important to understand what a charitable trust is. A charitable trust is a non-profit organization that is established for the benefit of the public. The main objective of a charitable trust is to provide benefits to society, such as education, medical care, relief of poverty, and advancement of religion etc. 

Eligibility Criteria for Charitable Trust Registration in Delhi

In order to register a charitable trust in Delhi, you need to meet certain eligibility criteria. The following are the eligibility criteria for charitable trust registration in Delhi:

  • The trust must be established for a charitable purpose.
  • The trust must have a minimum of two trustees.
  • The trust must have a registered office in Delhi.

Documents Require for Trust Registration

Documents of Author or Settler and Trustee

  1. Self attested copy of Pan card & Aadhar card
  2. Address Proof
  3. Passport Size Photograph

Registered Office Documents

  1. Rent Agreement with Name of Trust or Electricity bill
  2. NOC from owner of Premises
  3. Filled Questionnaire form

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Trust registration in India - An overview

Public Trust is the most convenient way of starting a non-governmental organization or NGO. A trust functions on the objective of eradicating poverty, providing education to the underprivileged and offering medical relief apart from the generalized aim of promoting arts, science and literature. It is to be noted that trusts are irrevocable which means they cannot be amended or terminated without the permission of the court. helps in providing you with the trust registration certificate with a few documents like a deed of trust, rental agreement, etc.
In India, there are no specific laws to govern the public trust, however, some states like Maharashtra and Tamil Nadu have their own public trust Act.

Must Know Before Trust Registration

Private vs Public Trust:

Indian Trusts Act, 1882 regulates and administers the private trusts in India, whereas the public trusts direct the functioning of public trusts except in the state of Maharashtra and Gujarat where public trusts are governed by Bombay Public Trusts Act, 1950.

Number of Trustees:

There is no upper limit for the trustees in a trust, but a minimum of two trustees are always required for registration. The trust deed should have provision concerning the management of the trust along with the procedure of appointing or removing the members.

Trust Deed:

The trust deed is the most important instrument in a trust, it prescribes the main objectives for which the trust is set up. Apart from the main objects of the trust, it defines its beneficiary and the powers of the trustee. The deed is signed in presence of two witnesses.

Tax Benefit:

Government privileges and tax benefits are not available to a private trust, whereas public trusts after registration with the income tax can avail certain tax exemptions.
There is a general notion that trust need not have to pay tax as they work towards the welfare of the public at large. But this is not true. A trust, like any other legal entity, is liable to pay tax. In order to be exempted from tax, trust is required to obtain certification for the said exemptions such as Section 12 A, 80G etc. from the Income Tax authorities. Learn More about 80G Registration and 12A Registration

Trust Registration Process

Step – 1: Selection Of Name

The first step in registering a trust is to choose a name for it. The name must be unique and not already registered with the Registrar of Societies..

Step – 2: Drafting Of Deed

he next step is to prepare a trust deed. The trust deed should contain the name of the trust, its objectives, the details of the trustees, and the rules and regulations of the trust.

Step – 3: Trust Registration

After the trust deed has been prepared, it must be signed by all the trustees in the presence of two witnesses. Once the trust deed has been signed, it must be registered with the Registrar of Societies in Delhi. Along with the trust deed, you will need to submit a few documents such as proof of identity and address of the trustees, and a no-objection certificate from the landlord if the trust property is rented. The last step is to pay the registration fees. The fees will depend on the value of the trust property.

Step – 4: PAN, TAN And Bank A/C

After registration of the trust, the next step is to apply for allotment of PAN Number and TAN and thereafter opening of a bank A/c.

What are the Benefits of Trust Registration?

To Involve In Charitable Undertakings

A Charitable Trust is primarily a way to set up your assets to benefit you, concerned beneficiaries, & a charity simultaneously. Such Trust could render various advantages for a person seeking to aid society with nonessential assets, such as stocks or real estate.

Accessibility to Tax Exemptions

All registered trusts in India have access to several tax exemptions offered by the Income-tax department. Since the object of the Trust doesn’t revolve around profit generation, like NGOs, they are eligible to avail various tax relaxations. However, such a benefit is only available to trust that have a registered deed at their disposal.

Trusts are very useful in ensuring taxation relaxation on capital and income. The Trust may facilitate better coverage for the settlor, the beneficiaries & the trust assets from stringent tax provisions.

Provide Benefits to Financially Aggrieved Individual

The registered Trust facilitates the much-needed financial aid to the poor people and the masses via charitable activities.

Encounter Minimal Legal Hindrances

The Indian Trusts Act, 1882, ensures comprehensive legal protection for the Trust. It also prevents any third party to make an unnecessary claim that could endanger the legal standing of Trust.

Ensures Legal Coverage for the Family Wealth

Trust can be used to allocate specific assets such as land/an interest in the entity formed by the family, which otherwise would not be practical for a trustor to split between individuals.

Provide Benefits to Financially Aggrieved Individual

The registered Trust facilitates the much-needed financial aid to the poor people and the masses via charitable activities.

Trust Compliances after Registration

Apply for Pan Card of Trust

After Registration of Trust deed. Its mandatory to apply for Trust Pan card. Our Trust Registration Package cover trust registration as well as application for Pan Card of Trust.

Book Keeping and Accounts

After Registration of Trust deed and after getting PAN Card. Its mandatory to open current account and maintain proper book of account.

Annual IT filings

It is mandatory for a trust referred to in Sections 139(4A)​, 139(4C), 139(4D) and 139(4E) to file the return of income. Further, a trust (not covered in above provision) is required to file return of income if its gross total income exceeds the maximum amount which is not chargeable to tax.

Every shop and the commercial establishment is required to obtain establishment registration with the Labour Department within 30 days of starting their business. It is mandatory for all states in India. Learn More

Any business offering sale of goods with annual turn over of 40 lacs or service with annual turnover of 20 lacs would require the registration for GST and have a valid GST Number. Learn More 

Professional Tax Registration (PT Enrollment)

Majority of the state governments have passed specific legislation to impose a tax on profession, employment of calling of any nature, however, it can not be more than Rs. 2500 per annum. Learn More

Frequently Asked Questions

Trust registration is still not considered a legal compulsion for a private trust that has a Will. In the case of a Public trust, whether in relation to moveable or immovable property & whether created under a will or inter vivos, trust registration is optional.

A trust can be created via a trust deed. Presently, two types of Trust exist in India, mainly public trust and public trust.

A trust may be formed by any person who is competent to contracts: This includes a person, HUF, AOP, establishment, so on and so forth. If a trust is formed on or behalf of an under-aged person, then the consent of a principal civil court of original is required.

The purpose for which a public trust can be created is the benefit of general public, and the same must be clearly prescribed in the trust deed, as it guides its functioning in the course of time. Generally a public trust is created for setting up a school, colleges, other educational initiatives, hospital, old age homes, orphanage, for promotion of child health and their empowerment, welfare of weaker section of society, and for fulfillment of Corporate Social Responsibilities (CSR) by companies under section 135 of the Companies Act, 2013.

The registration of Trust or Trust Deed Registration is a one and same thing and each state have prescribed a distinct profess for trust registration. As such, there is no uniform trust registration form to register a trust. The basic documents to register a trust is the trust deed and KYC documents of its author, trustee and witness of the trust deed.

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To obtain registration u/s 12A, the application in form 10A for registration of a charitable or religious trust can be made on the IT department portal.

To some extent, NGOs serve as an ancillary unit for a government that fulfil its philanthropic tasks. Trusts, on the contrary, are not dependent on the government’s programs. Trusts excel on separate policies since they can be private or public trusts.

All the forms of trust, NGOs, or Society are regarded as NGO. The only difference that separates these entities from each other is the registration and management processes.

It is a legal compulsion for all registered trusts to e-file IT return. If the Trust seeks to audit its account, then the IT return must be filed along with the Digital Signature of the certified CA who is accountable for carrying out the audit.