Trust Registration In Gujarat

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TRUST/SOCIETY REGISTRATION

Trust Registration

What is Trust Registration?

As per the Indian Trust Act 1882, a Trust is an arrangement where the owner (trustor) transfers the property to someone else (trustee) for the benefit of a third person (beneficiary). Such a property is transferred by the trustor to the trustee along with a condition that the trustee shall hold the property for the beneficiaries of the Trust and not for any other purpose

What are the Types of Trusts?

Trusts in India are categorically divided into:

1. Public Trust – Formed for the benefit of the public at large. It encompasses

Public Charitable Trust – Aids social causes such as education, healthcare, or relief work.

Public Religious Trust – Focuses on religious and spiritual activities.

2. Private Trust – Formed for the benefit of specific individuals or families. It is divided into

Determinate Private Trust – Beneficiaries and their shares are clearly defined.

Indeterminate Private Trust – Beneficiaries and shares are not determined.

How to Register a Trust in Gujarat?

To register a trust, follow these steps:

1. Choose a Unique Trust Name

The name shall be in accordance with the Emblems and Names Act, 1950.

2. Decide Trustees and Settlers

There are no specific restrictions on the number of trustees or settlers.

3. Draft the Trust Deed & Memorandum of Association (MOA)

The Trust Deed (stamped as per state laws) defines governing rules. The MOA outlines objectives, trustee responsibilities, and relationships.

4. Submit Documents for Registration

All the documents needed should be filed with the State Registrar of Trusts.

5. Verification & Certificate Issuance

After successful verification, the registrar issues a Trust Registration Certificate.

Who Needs to Submit Documents for Trust Registration?

The following documents are required:

Trust Deed

Identity Proof (Aadhaar, Passport, Voter ID, Driving License) – For Settler & Trustees

PAN Card – Of all settlers and trustees

Registered Office Address Proof (Electricity/Water Bill, Registration Certificate)

No Objection Certificate (NOC) – Signed by the property owner

Tax Advantages: 12A & 80G Certification

A registered trust can apply for:

12A Certificate – Exempts the trust from income tax on surplus funds for life.

80G Certificate – Enables donors to claim tax rebates, increasing the attractiveness of the trust to be funded.

By obtaining 12A & 80G certification, a trust can enjoy tax exemptions, increased donations, and better credibility.

Get answers to all your queries

What is the purpose of trust registration?

Trusts are registered to conduct charitable, social, educational, religious, or welfare activities legally and in a transparent manner.

How long does it take to register a trust in Gujarat?

The process typically takes 15-30 days, depending on document verification and approvals.

Can a single person form a trust?

No, a trust must have at least two trustees to be registered.

Is there a minimum capital requirement for trust registration?

No, there is no minimum capital requirement for registering a trust in India.

Can a trust own property?

Yes, after it is registered, a trust may lawfully acquire and hold property for its stipulated purpose.

What are the tax benefits of a registered trust?

A trust can obtain 12A & 80G certification, rendering it tax-free and enabling donors to claim a deduction.