What is a Trust?

When minimum 2 (Two) individuals unite to accomplish common purpose, it is referred as Trust. Indian Trust Act, 1882 governs the Registration of Trust. When a Trust registers, it becomes legal entity. Registration process and Document requirement of a Trust is different from Society.

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Difference between Trust and Society:

• Trust can be registered with minimum 2 individuals while for registration of a Society you need minimum 7 individuals.

• For registration of an All India Trust only 2 individuals are required while in case of an All India Society individuals from minimum 8 different states from India are required.

• Blood relation is not allowed in Society but in Trust any blood relation is permissible.

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Advantages enjoyed by Trust after its Registration:

• Trust gains a status of a legal entity.

• Trust can sue and get sued.

• Trust can open and operate its Bank Account in any Bank.

• Income Tax exemption can be availed by a Trust if a registered Trust gets registered under 12-A & 80-G of Income Tax Act.

• In case of unlawful activities, the Settler/Trustees are held to pay the debts as well as obligations.

• In case of profit, if debts and obligations are incurred by Setter/Trustees for the purpose of obtaining money, the Setter/Trustees are liable to pay else Setter/Trustees can’t be held liable.

• In Society you are supposed to Submission Annual List of Governing Body annually with Registrar of Societies, but in Trust there is no such activity required.

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What are the requirements for Trust Registration?

The following documents are required for Trust Registration-​​​

• 2 (Two) sets of Trust Deed (One set Original and One set in Xerox).

• Registered Office’s ownership proof i.e. Registered Property documents and Latest Electricity Bill.

• Aadhar Cards of minimum 2 (Two) Trustees out of which one will be a Settler and Trustee while another one will only be a Trustee.

• 2 (Two) passport sized coloured photographs of Settler.