A Trust is a legal arrangement where the founder (settlor or author) transfers assets to a trustee for the benefit of specified beneficiaries. Public Charitable Trusts are among the most common NGO structures in India — ideal for education, healthcare, religious, and social welfare activities.
Critical: If the trust is settled with immovable property, registration of the Trust Deed with the Sub-Registrar is mandatory under Section 17 of the Registration Act, 1908 — an unregistered deed cannot prove title to that property. Even for movable-only trusts, a registered deed plus PAN and 12A/80G registration are strongly recommended for enforceability, banking, and tax exemption.
Direct management of charitable assets
Trustees directly manage trust assets and programs without the overhead of managing a large member base. Ideal for founder-family philanthropies and project-specific charitable work.
Land, cash, and securities
A trust can hold and manage diverse assets — immovable property, securities, cash endowments — for specific charitable purposes. Trusts are common vehicles for endowment funds and memorial foundations.
Tax-free income, deductible donations
With 12A registration, the trust's income is exempt from income tax. With 80G approval, donors contributing to the trust receive 50–100% tax deduction on their donation amount.
Easy to set up, easy to run
A trust requires only a Trust Deed, 2–3 trustees, and a registered office. There are no annual general meetings, member elections, or complex MCA filings — reducing operational overhead.
Any person competent to contract can create a trust in India, subject to state-specific requirements.
A trust is created by a settlor (author) who appoints trustees. The law permits even a single trustee, but registrars, banks, and the Income Tax Department in practice expect at least 2 — with no upper limit. For public charitable trusts, India-resident trustees are strongly advisable.
Public Charitable Trusts must be formed exclusively for charitable purposes — relief of poverty, education, medical relief, advancement of religion, or any other general public benefit.
A detailed Trust Deed must be prepared specifying the name, objectives, trustees, beneficiaries, properties transferred, and rules for governance and succession.
Public trusts are registered under state-specific laws — e.g., Maharashtra Public Trusts Act, Rajasthan Public Trust Act. Registration is handled by the State Charity Commissioner.
A registered trust is the most direct and straightforward vehicle for long-term charitable and social work in India.
Unlike societies with democratic member governance, trustees of a trust have direct authority over assets, programs, and succession — ideal for family-managed charities.
12A registration exempts the trust's income from tax. This allows more resources to be directed toward charitable activities rather than paying tax on donations and grants.
Donors receive a 50% deduction on their taxable income for contributions made to an 80G-registered trust. This makes fundraising significantly easier from corporate and individual donors.
A trust with 3+ years of charitable operations can apply for FCRA registration to receive foreign donations from international organizations and foundations.
Trusts can hold immovable property, fixed deposits, and endowment funds in their own name — ensuring long-term financial stability for the charitable mission.
Registered trusts with 80G status are eligible to receive CSR contributions from companies under Schedule VII of the Companies Act 2013.
Trust registration is handled by the State Charity Commissioner or Sub-Registrar, depending on the state. Our experts manage the process end to end.
Scroll through the steps — or skip the queue and let our experts handle every one of them for you.
Get Expert HelpClearly define the charitable purpose — education, health, animal welfare, sports, etc. The Trust Deed's objectives must be specific and directly benefit the public, not just private individuals.
We draft a comprehensive Trust Deed covering trust name, objectives, trustees' names, settler's declaration, trust property, governance rules, and dissolution procedure.
The Trust Deed is executed on non-judicial stamp paper of the applicable denomination (varies by state). The settler and trustees sign in the presence of witnesses.
The Trust Deed is registered at the local Sub-Registrar office (under the Registration Act 1908) by all trustees presenting original Deed and ID documents.
In states with public trust legislation — Maharashtra and Gujarat (Charity Commissioner), and states like Madhya Pradesh and Rajasthan with their own Public Trusts Acts — the trust must additionally be registered with the state authority within the prescribed time after execution of the deed.
After registration, apply to the Income Tax Department in Form 10A for provisional 12A and 80G registration (later regularised via Form 10AB). This unlocks income-tax exemption for the trust and Section 80G deductions for its donors.
The Trust Deed is the central document. All trustees must provide KYC and sign the deed before the Sub-Registrar.
PAN of all trustees for tax and compliance purposes.
Identity and address proof for all trustees.
Passport-size photographs of all trustees.
Recent bank statement or utility bill for each trustee.
The stamp duty on the Trust Deed varies significantly by state and the value of property being transferred. In states with a Charity Commissioner, the trust must also file change of address, change of trustees, and annual accounts with the Commissioner.
Immediately after registration, unlock tax exemptions and build the institutional framework for your charitable work.
File Form 10A with the income tax department within the first year of registration to secure income tax exemption and enable donor deductions. Without 12A, all trust income is fully taxable.
Get accounts audited by a CA annually. File an annual report and audited financial statements with the Charity Commissioner (in applicable states). File ITR-7 with the income tax department.
Open a current bank account in the trust's name using the Trust Deed, registration certificate, PAN, and a resolution of trustees. All donations and grants must flow through this account.
A Trust Deed is a permanent legal document — vague objects or trustee clauses drafted today can create disputes decades later. We draft deeds built to last.
Trustee powers, beneficiary rights, and charitable objects worded to withstand legal and tax scrutiny for years.
Objects clauses drafted specifically to support smooth income-tax exemption and donor-benefit approvals later.
Advisory on structuring your Trust so it can pursue foreign donation registration once it becomes operationally active.
Positioning guidance to help corporates recognise your Trust as a credible CSR fund recipient.
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