Trust Registration in India

A Trust can be registered in India to conduct not for profit or charitable activities.Get a Trust Deed prepared by a professional through NGO First.
Trusts are a form of NGO created with noble intentions to work for the development of society. They serve purposes such as promoting education to needy, medical aasistance to helpless and many more. Trust registration is officially registering a trust under the Trusts Act of 1882. This legal step ensures that the trust is recognized and operates within the framework of the law. Trust registration provides legal validity and establishes its existence as a separate entity. .
A trust is established when the trustor transfers a specific asset or property to the trustee for the ultimate benefit of the beneficiary. The beneficiary, who is typically a third party, may have a connection to both the trustor and the trustee.
Therefore, the relationship between the parties involved is essential in defining trust. According to the Indian Trusts Act of 1882, a trust is defined as a "Relationship between the trustor and trustee to hold specific benefits for the beneficiary."

Types of Trusts

Trusts can be classified into various categories based on the activities they undertake:

• Public Trust
• Private Trust
• Public Cum-Private Trust

Public Limited Trusts

Public limited trusts are typically created to benefit the general public. They are often established for charitable, educational, and religious purposes and are governed by specific statutes such as the Religious Endowments Act of 1863, the Charitable and Religious Trust Act of 1920, or the Bombay Public Trust Act of 1950. Charitable and religious trusts are the most common types of public trusts in India.

Private Limited Trusts

Private Limited Trusts are established to carry out activities for specific individuals, families, or close associates. These trusts can have beneficiaries closely related to the trust'strust's founders. Private limited trusts are governed by The Trusts Act of 1882.

Public Cum-Private Trust

This type of trust serves both public and private purposes. It can utilize its income for the benefit of the public and specific individuals or families. The beneficiaries of a public cum-private trust can be a combination of public and private individuals.