Register Your Charitable Trust Legally — Compliant, Credible & Tax-Exempt
A Trust is a legal arrangement in which one party (the Settlor or Author) transfers property or assets to another party (the Trustee) to hold and manage for the benefit of identified beneficiaries or for a charitable purpose. In India, trusts are primarily governed by the Indian Trusts Act, 1882 for private trusts, and by various state-level Public Trusts Acts for public charitable trusts.
There are two broad categories: (a) Private Trusts — created for the benefit of specific, identified beneficiaries such as family members; and (b) Public Charitable Trusts — created for the benefit of the general public or an identifiable section thereof, for purposes such as education, poverty relief, medical relief, religion, promotion of knowledge, or general public utility.
A Trust requires a minimum of two trustees, a registered Trust Deed, and registration with the Sub-Registrar and/or Charity Commissioner where applicable under state law. After obtaining 12A and 80G registration from the Income Tax Department, eligible trusts receive income tax exemptions and donors receive tax deduction benefits on contributions.
Public Charitable Trust
Private Trust
Other Structures
Simplest & Most Affordable Non-Profit Structure
A Trust is the easiest non-profit to form — no MCA registration, no government licence required. Just a registered Trust Deed with the Sub-Registrar and the entity is legally operational.
12A & 80G Tax Exemptions
After 12A registration, the trust's own income is exempt from tax. After 80G registration, donors can claim income tax deductions on contributions — making fundraising significantly easier.
FCRA & CSR Funding Ready
Eligible trusts can apply for FCRA registration to receive foreign contributions, and are eligible to receive CSR funds from corporates under Schedule VII of the Companies Act — subject to meeting prescribed conditions.
Charitable Purpose Perpetually Protected
The Trust Deed legally locks the charitable objects — assets and funds can only be used for the stated purpose, protecting against misuse by trustees and ensuring long-term mission integrity.
Estate Planning & Succession (Private Trust)
Private trusts are a powerful tool for family estate planning — transferring assets to heirs in a structured, tax-efficient manner while avoiding probate and family disputes over succession.
Can Own Immovable Property
A registered Trust can own land and buildings in its own name — critical for educational institutions, hospitals, and religious bodies that require a legal entity to hold real estate assets.
| Feature | Trust ★ | Section 8 Co. | Society |
|---|---|---|---|
| Governing Law | Indian Trusts Act / State Acts | Companies Act 2013 | Societies Reg. Act |
| Formation Ease | Simplest | Moderate | Moderate |
| Min. Cost | Lowest | Higher | Low–Moderate |
| Transparency | Low | Highest | Moderate |
| CSR Eligibility | Conditional | Yes | Conditional |
| Ideal For | Small NGOs, family trusts | Large NGOs, foundations | Member-based orgs |
NGO Founders
Individuals or groups starting a charitable foundation or welfare organisation on a modest budget.
Families for Succession
Families looking to transfer wealth across generations in a structured, dispute-free manner via private trusts.
Educational Institutions
Schools, colleges, and coaching centres operating on a non-profit basis require a trust or society to hold assets and receive donations.
Healthcare Non-Profits
Hospitals, clinics, and dispensaries operating for public benefit, seeking 12A/80G status and CSR funding eligibility.
Religious Bodies
Temples, mosques, churches, gurudwaras, and other religious institutions requiring a legal entity to hold property and manage donations.
Corporate CSR Arms & FCRA Applicants
Corporate foundations and organisations seeking FCRA registration to receive foreign contributions from international donors.
Consultation & Structure Advisory
1–2 DaysDetermine whether a Public Charitable Trust, Private Trust, or alternative structure (Section 8, Society) best suits the objectives — and identify the correct state-level registration authority.
Trust Deed Drafting
3–5 DaysDraft a comprehensive Trust Deed reflecting the trust's name, objects, settlor, trustees, beneficiaries, corpus, powers of trustees, succession of trustees, and dissolution clause — tailored for 12A/80G eligibility.
Stamp Paper, Execution & Sub-Registrar Registration
3–7 DaysPrint the Trust Deed on appropriate stamp paper (value varies by state and corpus), execute with all trustees and the settlor present, and register at the local Sub-Registrar's office.
Charity Commissioner Registration (if applicable)
30–90 DaysStates such as Maharashtra, Gujarat, Rajasthan, and Karnataka require additional registration with the Charity Commissioner or equivalent authority for public trusts. This is mandatory in those states to operate legally as a public trust.
PAN & Bank Account
5–7 DaysApply for PAN in the Trust's name using the registered Trust Deed. Open a dedicated current account in the Trust's name — mandatory before applying for 12A/80G registration.
12A & 80G Registration
30–90 Days Post-RegistrationApply for Section 12A (income tax exemption for the trust) and 80G (tax deduction eligibility for donors) registration with the Income Tax Department. Both are required to become fully donor-ready and tax-exempt.
Settlor & Trustees
PAN card and Aadhaar / Passport / Voter ID of settlor and all trustees
Address proof of settlor and each trustee (bank statement or utility bill)
Passport-size photograph of settlor and each trustee
Trustee consent letters and trust corpus / property details
Trust Office & 12A / 80G
Registered office address proof — rent agreement + NOC or ownership document
Latest utility bill (electricity / water) — not older than 2 months
Registered Trust Deed + PAN + bank account details (for 12A / 80G application)
Activity report and audited statements (if trust already in existence)
Pricing Plans
Private Trust
₹6,999 one-time
Family / Estate / Succession Trust
Ideal for: Families for estate planning, HUF succession, private wealth trusts
Public Charitable Trust
₹12,999 one-time
NGO / Educational / Medical Trust
Ideal for: NGO founders, educational institutions, medical trusts
Complete NGO Trust Package
₹24,999 one-time
Registration + 12A + 80G + Compliance
Ideal for: Complete donor-ready NGO setup
Frequently Asked Questions
What is the difference between a Trust, a Society, and a Section 8 Company?
All three are valid non-profit structures but with different governance models and registration authorities. A Trust is the simplest to form (just a registered deed), governed by state Trust Acts — ideal for small NGOs and family estates. A Society is governed by the Societies Registration Act and is preferred for member-based organisations. A Section 8 Company is governed by MCA under the Companies Act, offers the highest transparency and credibility, and is preferred for large NGOs seeking CSR and institutional funding.
Is Charity Commissioner registration always required?
It depends on the state. Maharashtra, Gujarat, Rajasthan, Karnataka, and some other states require registration with the Charity Commissioner (or equivalent authority) in addition to Sub-Registrar registration for public charitable trusts. In states like Delhi, Uttar Pradesh, and Tamil Nadu, Sub-Registrar registration alone is generally sufficient. VITTAX advises on the correct authority for your state.
Can a Trust own immovable property?
Yes — a registered Trust can own land and buildings in its own name, subject to proper conveyance and stamp duty payment. Property transferred to a public charitable trust is protected from individual claims and can only be used for the trust's stated charitable objectives, making it ideal for educational institutions and religious bodies.
What is 12A registration and who needs it?
Section 12A registration with the Income Tax Department provides income tax exemption to a registered trust or NGO — the trust's own income (from donations, grants, activities) is not taxable once 12A registration is obtained. Any public charitable trust or NGO that wishes to operate tax-free must obtain 12A registration.
What is 80G registration and how does it help?
Section 80G registration allows donors to claim income tax deductions on donations made to the trust — typically 50% to 100% of the donated amount, subject to limits. This makes the trust significantly more attractive to individual and corporate donors, and is a prerequisite for most institutional fundraising and CSR partnerships.
⚡ Complete Package Includes
Trust Deed drafting, Sub-Registrar & Charity Commissioner registration, 12A & 80G, FCRA advisory & compliance calendar — all handled for you