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9521216548|7689862351
info@onepointindia.in
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Simplest NGO Structure

Trust Registration

Create your charitable, religious, or educational trust with minimal formalities

₹7,000₹14,00050% OFF
  • Complete Registration in 5-7 Days
  • Minimum 2 Trustees Required
  • 12A & 80G Tax Exemption Support
  • Trust Deed Drafting Included
  • Registration Certificate
  • Lifetime Legal Consultation

Get Started Today!

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8 REASONS TO REGISTER A
TRUST

⚡

Simplest Structure

Most straightforward NGO formation with minimal requirements

💰

Tax Exemptions

Eligible for 12A and 80G income tax benefits

🔒

Asset Protection

Trust property legally protected for stated objectives

👥

Only 2 Trustees

Can be formed with just two trustees

📋

Easy Management

Simple governance structure with trustees control

💸

Low Cost

Most economical option for NGO registration

🎯

Flexible Objectives

Can be formed for any legal charitable purpose

⚖️

Legal Entity

Recognized legal entity with perpetual existence

What is a Trust?

A Trust is a legal arrangement where property or assets are held by trustees for the benefit of beneficiaries. It is created through a Trust Deed and can be registered under the Indian Trusts Act, 1882, or under respective state-specific Acts. Trusts are the simplest and most economical form of NGO structure in India.

A Trust consists of three main parties: the Author/Settlor (who creates the trust), Trustees (who manage the trust), and Beneficiaries (who benefit from the trust). The Trust Deed defines the objectives, powers of trustees, and rules for trust administration. Minimum two trustees are required to form a public charitable trust.

Trusts are particularly suitable for religious, charitable, and educational purposes. They offer the simplest management structure with trustees having full control over trust affairs. Once registered, trusts can apply for 12A and 80G registrations to provide tax benefits to donors and enjoy income tax exemptions.

Min 2
Trustees Required
₹0
No Capital Needed
5-7 Days
Registration Time

Key Features of Trust

1

Simplest Formation

Easiest and most straightforward NGO structure to establish

2

Minimum Trustees

Can be formed with just 2 trustees, no maximum limit

3

No Capital Required

Can be formed without any minimum capital or corpus fund

4

Complete Control

Trustees have full control over trust management and decisions

5

Perpetual Existence

Continues indefinitely despite changes in trustees

6

Tax Benefits

Eligible for 12A and 80G registrations for tax exemptions

7

Asset Protection

Trust property used exclusively for stated objectives

8

Low Compliance

Minimal annual compliance requirements compared to companies

9

FCRA Eligible

Can apply for FCRA to receive foreign contributions

10

Cost Effective

Most economical option for forming an NGO

Types of Trusts

🤲

Public Charitable Trust

Created for public benefit with charitable objectives like education, healthcare, poverty relief

  • ✓Tax exemptions available
  • ✓Can receive donations
  • ✓Must benefit public
🏛️

Religious Trust

Established for religious purposes, managing religious institutions, temples, mosques, churches

  • ✓Religious activities
  • ✓Worship management
  • ✓Community service
👨‍👩‍👧‍👦

Private Trust

Created for specific individuals or families, not for general public benefit

  • ✓Family benefit
  • ✓Wealth management
  • ✓Not for tax benefits

Requirements for Trust Registration

Trustees Requirements

  • Minimum 2 trustees required
  • All trustees must be adults (18+ years)
  • Author/Settlor to create the trust
  • Trustees can be from any location
  • PAN card mandatory for all trustees
  • Address proof of each trustee

Trust Documents

  • Trust Deed (properly drafted)
  • Registered office address proof
  • Identity proofs of all trustees
  • Two passport size photographs
  • Rent agreement/property papers
  • No minimum capital/corpus required

Permitted Objectives for Trust

📚

Education

Educational institutions, scholarships, literacy

🏥

Medical Relief

Hospitals, healthcare, medical assistance

🙏

Religious

Religious activities, temples, worship places

🤲

Charity

Relief of poor, orphanages, old age homes

🌱

Environmental

Conservation, wildlife, environmental protection

🎨

Arts & Culture

Promotion of arts, literature, culture

🏛️

Public Utility

Libraries, museums, public facilities

👥

Social Welfare

Community development, women empowerment

🐾

Animal Welfare

Animal protection, veterinary care

⚽

Sports

Sports development and infrastructure

🔬

Research

Scientific research and development

🏘️

Rural Development

Village development, rural upliftment

Documents Required

1Identity Proof (All Trustees)

  • ✓ PAN Card (Mandatory)
  • ✓ Aadhaar Card
  • ✓ Voter ID Card
  • ✓ Passport/Driving License
  • ✓ Passport Size Photographs (2)

2Address Proof

  • ✓ Trust Registered Office Proof
  • ✓ Rent Agreement/Lease Deed
  • ✓ NOC from Property Owner
  • ✓ Electricity Bill/Water Bill
  • ✓ Property Tax Receipt/Ownership Papers

3Trust Documents

  • ✓ Trust Deed (Drafted & Stamped)
  • ✓ List of Trustees with Details
  • ✓ Consent Letters from Trustees
  • ✓ Declaration by Settlor/Author
  • ✓ Memorandum of Trust (if applicable)

Important Note:

The Trust Deed is the most important document. It must clearly define the objectives, powers of trustees, and administration rules. The deed must be executed on stamp paper of appropriate value as per state stamp duty regulations. Registration is optional in some states but highly recommended.

Trust Registration Process

Complete your trust registration in simple steps

1

Name

Choose Trust Name

2

Trustees

Identify Trustees

3

Draft

Draft Trust Deed

4

Stamp

Stamp Duty Payment

5

Execute

Execute Deed

6

Register

Register with Registrar

7

Certificate

Get Registration

5-7 Days
Average Time to Complete

Essential Clauses in Trust Deed

📍

Name & Address

Official name of the trust and registered office address

👤

Author/Settlor Details

Details of the person creating the trust

👥

Trustees Details

Names, addresses, and details of all trustees

🎯

Trust Objectives

Clear statement of charitable/religious objectives

🏠

Trust Property

Details of initial corpus/property contributed

⚡

Powers of Trustees

Powers to manage trust, acquire property, employ staff

📝

Amendment Clause

Procedure for amending the trust deed

🔚

Dissolution Clause

Process for dissolution and asset distribution

📅

Meetings

Frequency and procedure for trustee meetings

💼

Accounts & Audit

Maintenance of accounts and audit requirements

➕

Trustee Appointment

Procedure for appointing new trustees

➖

Trustee Removal

Process for removal or resignation of trustees

Annual Compliance Requirements

🤝

Trustee Meetings

Conduct regular meetings of trustees as specified in the deed

📚

Books of Accounts

Maintain proper books of accounts for all receipts and payments

📋

Income Tax Return

File ITR if income exceeds exemption limit or claiming benefits

🔍

Audit (if applicable)

Get accounts audited if income exceeds prescribed limits

💰

12A & 80G Compliance

Maintain records and file returns for tax exemption certificates

🌍

FCRA Returns

File annual returns if registered under FCRA and receiving foreign funds

📝

Minutes Book

Maintain minutes of all trustee meetings properly

📊

Annual Report

Prepare annual report of activities and financial statements

Frequently Asked Questions

Q1.What is the difference between Public Trust and Private Trust?
Public Trust is created for public benefit with charitable, religious, or educational objectives and can avail tax benefits. Private Trust is created for specific individuals or families, not for general public benefit, and cannot claim tax exemptions. Public trusts can receive donations while private trusts cannot.
Q2.Is Trust registration mandatory in India?
Trust registration is optional in most states but highly recommended. While an unregistered trust deed is valid, registration provides legal recognition, makes it easier to apply for 12A/80G, open bank accounts, and provides better credibility. Some states like Maharashtra require mandatory registration under state acts.
Q3.How many trustees are required to form a Trust?
Minimum 2 trustees are required to form a Trust. There is no maximum limit on the number of trustees. However, it's advisable to have an odd number of trustees to avoid deadlocks in decision-making. All trustees must be adults (18+ years).
Q4.Can a Trust receive foreign donations?
Yes, a Trust can receive foreign contributions after obtaining FCRA (Foreign Contribution Regulation Act) registration from the Ministry of Home Affairs. The trust must be operational for at least 3 years and have spent minimum ₹15 lakhs on its activities before applying for FCRA.
Q5.What are the tax benefits available to Trusts?
Trusts can apply for 12A registration for income tax exemption on surplus income. They can also obtain 80G certification which allows donors to claim 50% tax deduction on donations made (100% for certain trusts). Trusts are also exempt from paying income tax on income applied for charitable purposes.
Q6.Can trustees receive remuneration in a Trust?
Yes, trustees can receive reasonable remuneration for services rendered if the trust deed permits it. However, trustees cannot receive remuneration merely for being a trustee. The remuneration should be for actual work/services provided and must be approved by other trustees. It should not be considered as profit distribution.
Q7.What is the stamp duty for Trust registration?
Stamp duty varies from state to state. Generally, it ranges from ₹100 to ₹500 for public charitable trusts. Some states offer exemption or reduced stamp duty for charitable trusts. The trust deed must be executed on non-judicial stamp paper of appropriate value as per state laws.
Q8.Can a Trust be dissolved or closed?
Yes, a Trust can be dissolved as per the dissolution clause in the trust deed. Generally, trustees need to pass a resolution for dissolution. The remaining assets after settling all liabilities must be transferred to another trust with similar objects. Proper notice must be given to authorities and stakeholders.
Q9.Can a Trust purchase and own property?
Yes, a Trust can purchase, own, and hold property in its name. The property belongs to the trust and not to individual trustees. Trustees manage the property on behalf of the trust. The trust deed should clearly specify the powers of trustees to acquire, hold, and dispose of trust property.
Q10.What happens if all trustees die or resign?
The trust deed should contain provisions for appointing new trustees. If all trustees die/resign and no procedure exists, the court can appoint new trustees on application. To avoid such situations, it's advisable to have provisions in the deed for automatic succession or co-option of new trustees.

Advantages & Disadvantages

Advantages

  • ✓Simplest and easiest to form
  • ✓Only 2 trustees required
  • ✓No minimum capital needed
  • ✓Most cost-effective NGO structure
  • ✓12A & 80G tax exemptions
  • ✓Simple management structure
  • ✓Trustees have complete control
  • ✓Low annual compliance
  • ✓Property legally protected
  • ✓Perpetual existence
  • ✓Can receive donations
  • ✓FCRA eligible

Disadvantages

  • !No limited liability for trustees
  • !State-specific registration only
  • !Lower credibility than companies
  • !Difficult to dissolve
  • !Trustees have unlimited powers
  • !Amendment process complex
  • !FCRA requires 3 years
  • !Trustee disputes can paralyze trust
  • !Less transparency requirements
  • !Court intervention in disputes
  • !Property transfer issues
  • !Less preferred by large donors

Trust vs Society vs Section 8 Company

FeatureTrustSocietySection 8
Minimum Members2 Trustees7 Members2 Directors
FormationEasiestEasyComplex
CostLowestLowHigh
Time5-7 Days7-10 Days15-20 Days
ComplianceMinimalModerateHigh
CredibilityLowModerateHigh
StructureSimpleDemocraticCorporate
Tax Benefits12A, 80G12A, 80G12A, 80G

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