How to Register a Public Trust in India
A Public Charitable Trust is one of the most widely used structures for philanthropy, education, and social welfare in India. Unlike a Section 8 Company, a Trust is governed by the Indian Trusts Act 1882 (for private trusts) or state-specific Public Trusts Acts. Registration with the Sub-Registrar (or the Charity Commissioner in Maharashtra/Gujarat) gives it legal standing.
Before you start
- Minimum two trustees (settlor and at least one trustee)
- Clear charitable objectives (education, medical relief, poverty alleviation, religious, etc.)
- Proposed name of the Trust
- PAN and Aadhaar of all trustees
- Address proof for the Trust's registered office
- Initial corpus amount (even a nominal amount like ₹1,000)
Step-by-step
Draft the Trust Deed
Prepare a comprehensive Trust Deed on non-judicial stamp paper. The deed must clearly state: the name, the settlor's declaration, trustee details, objectives, powers and duties of trustees, how trustees are appointed/replaced, how the corpus can be used, and a dissolution clause. Have it reviewed by a lawyer to ensure all essential clauses are covered.
Execute the Deed with Witnesses
The settlor and all trustees must sign the Trust Deed in the presence of two witnesses. The witnesses also sign. All parties must be physically present at the Sub-Registrar's office for registration — most states do not permit registration by power of attorney.
Register with the Sub-Registrar
Submit the signed Trust Deed to the Sub-Registrar of Assurances in whose jurisdiction the Trust's registered office falls. Pay the stamp duty and registration fees applicable in that state. The Sub-Registrar verifies identities, scans documents, and issues a registered copy.
Obtain a PAN for the Trust
Apply for a PAN in the Trust's name using the registered Trust Deed as identity proof. The Trust's PAN is separate from the trustees' individual PANs and is required for opening a bank account and filing returns.
Open a Bank Account
Open a dedicated current account in the Trust's name using the registered Trust Deed and PAN. All corpus and donations must flow through this account for accounting transparency.
Apply for 12A and 80G Registrations
File on the Income Tax portal for 12A (exemption on Trust's own income) and 80G (donor deduction) registrations. Both are now filed online and are essential for receiving donations, especially from corporates making CSR contributions.
Common mistakes to avoid
- Using inadequate stamp paper — the required stamp duty varies by state and corpus amount; using insufficient stamps voids the registration.
- Not including a surplus application clause — without explicit direction that all income must be used for the stated objects, the Trust may not qualify for income-tax exemption.
- Mixing trustee personal funds with Trust funds — all Trust receipts and payments must go through the dedicated Trust bank account, or the trust corpus can be legally challenged.
- Delaying 12A/80G applications after registration — both applications are now filed online and take 1–3 months; starting early ensures the Trust is operational for donation receipt without income-tax exposure.
Frequently asked questions
What is the difference between a Trust and a Section 8 Company for NGO purposes?
A Trust is simpler to form (no government licence needed upfront) but offers less accountability structure. A Section 8 Company is regulated by the Companies Act, has mandatory audit and filing requirements, and is often preferred by institutional donors and CSR funders who want higher governance standards.
Can a Trust accept foreign donations?
Only if the Trust also has FCRA registration from the Ministry of Home Affairs. FSSAI registration alone does not permit foreign contributions.
Is registration of a Trust mandatory?
Registration is not mandatory under the Indian Trusts Act but is practically essential. An unregistered trust cannot open a bank account easily, cannot apply for 12A/80G, and has limited legal standing in disputes.
How many trustees does a Trust need?
There is no statutory minimum for private trusts. For public trusts, having 3–7 trustees is customary and advisable for governance. Some state Public Trust Acts specify minimum numbers.
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