Registration
Public Trust / Society
Features
- • Limited liability
- • Formed by natural or legal persons
- • 12A exemption
- • For a class or the public
Eligibility
- • Three members
- • Trust deed
- • Resident of India
Trusts are meant for the benefit of a class or the public, usually created for charitable, educational, religious, or scientific purposes — working toward eliminating poverty, providing life care, and endorsing art, science, and literature. There is no Central Act for Public Trusts; states have enacted their own acts. A trust deed stating the trustees, objectives, and intended public beneficiaries is all it takes to register under the relevant State Trusts Act. A Public Trust is eligible for government tax rebates and has a more permanent nature than a Private Trust.
Public trusts may be created inter vivos or by will, and both the state and beneficiaries can oversee their working. Three assurances are required to create a charitable trust: a binding declaration of trust by the settlor, the settlor setting apart property and relinquishing ownership rights, and a clear statement of the objects for which the property is held.
Public Trusts have boards consisting of a Founder, Trustee Secretary, Treasurer, and other trustees — a trustee must be a resident of India. A minimum of 3 members is required to form a trust, with a maximum board quorum of 21. The minimum age to become a trustee is 18 for females and 19 for males.
Conversion
A Private Limited Company or Private Trust can be converted into a Public Trust.
Taxation
Registered trusts for charitable or religious purposes are eligible for tax exemptions under certain conditions. If a trust spends 85% or more of its total receipts toward its objects in India, the remaining 15% is not taxed.
Registration Process
- 1
Name Approval
Choose a name free of anything suggesting government patronage and not prohibited under the Emblems and Names Act, 1950. Names already used by another registered trust can be reused.
- 2
Submitting Trust Deed
Prepare the Trust Deed — the trust's equivalent of a MoA — stating names/addresses of trustees and members, registered office, objectives, rules, and beneficiaries, then submit it to the local Registrar.
- 3
Obtain Registration Certificate
Once submission formalities are complete and documents verified by the Registrar, the registration certificate is granted within 7 working days.
Documents Required
- ID proof — Passport, Driving License, or Voter ID
- Address proof — mobile/telephone bill, recent utility bill, or bank statement
- Two passport-size photographs of each trustee
- Trust deed on stamp paper of requisite value
- Proof of registered office — rental agreement or lease deed
- No Objection Letter and owner's utility bill, for consented premises
Frequently Asked Questions
What is a Trust Deed?
A document stating the details of trustees, the objectives of the trust, and its intended public beneficiaries — the first prerequisite for a trust's legal existence.
How many members are required to register a Public Trust?
A minimum of 3, with an upper cap of 21.
Can a Public Trust be terminated at the members' will?
No, trusts are irrevocable and cannot be terminated without a court's permission.
Who is a Trustee?
A person in whom the trust property is vested.
What is the age requirement for a trustee?
At least 18 years for females and 19 years for males.
If a Public Trust's board is all one family, does it become a private trust?
No — a trust's nature is determined by its purpose and use of income. If those serve general public welfare, it remains a Public Trust regardless of the board's makeup.
Register Public Trust / Society
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