A Trust is one of the oldest and most widely used forms of nonprofit organizations in India. It is created for charitable, religious, or educational purposes, where the founder (author of the trust) entrusts property or assets to trustees to manage for the benefit of society.
In most states, public trusts are registered under the Indian Trusts Act, 1882. However, in some states like Maharashtra, Madhya Pradesh, and Gujarat, registration is governed by specific state laws such as the Bombay Public Trusts Act, 1950, The M.P. Public Trusts Act, 1951 and Gujarat Public Trust Act 2011. These state-specific laws involve additional compliance and registration procedures with respective charity commissioners.
State-wise Governing Laws for Trust Registration:
|
State |
Applicable Law |
Registering Authority |
|
Maharashtra |
Bombay Public Trusts Act, 1950 |
Charity Commissioner |
|
Madhya Pradesh |
M.P. Public Trusts Act, 1951 |
Registrar of Public Trusts / Charity Commissioner |
|
Rajasthan |
Rajasthan Public Trusts Act, 1959 |
Devasthan Department / Charity Commissioner |
|
Gujarat |
Gujarat Public Trust Act 2011 |
Charity Commissioner |
|
Karnataka |
Indian Trusts Act, 1882 |
Sub-Registrar of Assurances |
|
Tamil Nadu |
Indian Trusts Act, 1882 |
Sub-Registrar of Assurances |
|
Delhi |
Indian Trusts Act, 1882 |
Sub-Registrar of Assurances |
|
Uttar Pradesh |
Indian Trusts Act, 1882 |
Sub-Registrar of Assurances |
|
West Bengal |
Indian Trusts Act, 1882 |
Sub-Registrar of Assurances |
|
Haryana |
Indian Trusts Act, 1882 |
Sub-Registrar / Tehsil Office |
|
Bihar |
Indian Trusts Act, 1882 |
Sub-Registrar of Assurances |
|
Other States |
Indian Trusts Act, 1882 |
Local Sub-Registrar / Revenue Department |
Comparison Between Trust, Society & Section 8 Company
|
Feature |
Trust |
Society |
Section 8 Company |
|
Governing Law |
Indian Trusts Act, 1882 (or State-specific Acts) |
Societies Registration Act, 1860 (or State-specific) |
Companies Act, 2013 |
|
Regulatory Body |
Charity Commissioner / Sub-Registrar |
Registrar of Societies |
Registrar of Companies (MCA) |
|
Minimum Members Required |
2 Trustees |
7 Members |
2 Directors (at least one resident of India) |
|
Legal Status |
Not a separate legal entity |
Not a separate legal entity |
Separate legal entity |
|
Ease of Formation |
Relatively simple |
Moderate |
Requires stricter compliance |
|
Transparency & Credibility |
Moderate |
Moderate |
High (Audits, filings with MCA) |
|
Foreign Funding (FCRA) |
Allowed but less preferred |
Allowed |
Preferred structure for foreign donations & CSR grants |
|
Annual Compliance |
Low |
Medium |
High (Regular filings and audit requirements) |
At StartupMancer, we simplify the Trust registration process by handling all documentation, drafting the Trust Deed, and completing legal formalities—ensuring you’re set up correctly to start your social impact journey.
1. Quick Formation
Registering a Trust is relatively simple and cost-effective compared to other forms of NGOs like Section 8 Companies. With minimal documentation and basic formalities, you can quickly begin your charitable operations without complex regulatory hurdles.
2. Legal Status
Once registered, a Trust becomes a recognized legal entity. This allows the Trust to own property, open a bank account, enter into contracts, and receive donations or grants—enabling it to function professionally and transparently in the public interest.
3. Tax Exemptions
Registered Trusts are eligible to apply for 12A and 80G certifications under the Income Tax Act. These exemptions allow the Trust to save on taxes and also offer tax benefits to donors, making fundraising easier and more attractive.
4. No Minimum Capital
Unlike companies, Trusts do not require any fixed capital or minimum financial investment to get started. This flexibility encourages individuals or groups with limited resources to begin philanthropic initiatives legally and efficiently.
5. Social Credibility
A registered Trust earns public trust and credibility over time. Whether you're applying for government grants, corporate CSR funds, or building relationships with donors, having a legally recognized structure builds confidence and makes it easier to collaborate with partners and institutions.
Draft Trust Deed: We prepare a legally compliant Trust Deed outlining objectives, trustees’ powers, and rules.
Choose Trustees & Settlor: Minimum 2 trustees are required along with a settlor who donates the initial property/fund.
Decide Registered Office: You need a physical address to register the Trust.
Submit Application to Sub-Registrar: The deed is signed and submitted to the local registrar along with photographs, ID proofs, and other documents.
Trust Registration Certificate: Once verified, the registrar issues the Registration Certificate with a certified copy of the Trust Deed.
Note: Timeline for Trust Registration is typically 10–15 working days, depending on the jurisdiction and document readiness.
For Settlor and Trustees:
PAN card (mandatory)
Aadhaar card / Voter ID / Driving License / Passport
Passport-size photo
Two Witness Aadhaar card which shall not be trustees or settlor.
Email & Contact number
For Registered Office:
Latest electricity or utility bill (not older than 1 month)
Rent agreement (if rented)
NOC from the property owner
Minimum 2 Trustees (can go up to any number; no maximum limit)
A Settlor (person creating the trust and donating initial property/fund)
Clearly defined charitable or religious objective
Registered office address in India
Trust name (should not resemble existing registered organizations)
Two Witness details which shall be present before sub-registrar at the time of presentment of deed with original Id.
Registering a Trust is a fast, flexible, and powerful way to start a charitable organization in India. It gives you legal standing to operate, raise funds, and deliver services that benefit society.
At StartupMancer, we provide complete assistance in Trust registration—from drafting the Trust Deed to securing your registration certificate. Whether you're starting a school, temple, or health initiative, we’re here to help you launch your mission legally and confidently.