Establishing a Charitable Trust in India is a powerful way to contribute to social development and gain legal recognition with tax advantages. Whether your mission is to support education, healthcare, poverty alleviation, or environmental causes, a registered charitable trust gives your initiative legitimacy and sustainability.
At Lal Ghai & Associates, a leading Company Secretary in Punjab, we help individuals and NGOs with end-to-end services for Charitable Trust Registration, tax compliance, and legal formalities.
What is a Charitable Trust?
A Charitable Trust is a not-for-profit legal entity set up under the Indian Trusts Act, 1882 or relevant State Public Trust Acts. It is governed by trustees and operates for charitable or religious purposes. Unlike private trusts, public charitable trusts are established for the benefit of the general public.
Types of Trusts in India
- Private Trusts: Formed for the benefit of a specific individual or family.
- Public Trusts: Created for community welfare. Includes:
- Religious Trusts
- Charitable Trusts
Benefits of Registering a Charitable Trust
- Legal Identity for receiving donations, grants, and funding
- 12A & 80G Registration for income tax exemption and donor benefits
- FCRA Registration to receive foreign donations
- Perpetual Succession – continues beyond the life of founders
- Enhanced Credibility and donor trust
- Access to Government Grants & Schemes
Charitable Trust Registration Process in India
Step-by-Step Guide:
- Choose a Unique Name – Ensure it doesn’t violate existing laws or entities.
- Draft the Trust Deed – Clearly define objectives, trustees, rules, and powers.
- Appoint Trustees – Minimum two responsible individuals.
- Register the Trust – At local Sub-Registrar office (with applicable stamp duty).
- Apply for PAN & TAN – For taxation and TDS compliance.
- Obtain 12A & 80G Certification – Essential for tax benefits.
- Open a Bank Account – In the name of the registered trust.
- Annual Compliance – Maintain accounts, file ITR, conduct audits.
Documents Required
- Trust Deed on Stamp Paper
- Identity & Address Proof of Settlor and Trustees
- Proof of Registered Address (rent deed/ownership)
- PAN of Trustees and Trust
- Passport-size photos
- NOC from property owner (if applicable)
Tax Exemptions for Charitable Trusts
- 12A Registration: Income of trust is exempt from tax
- 80G Registration: Donors get 50% tax rebate
- GST Exemption: For charitable activities
- FCRA Registration: For foreign contribution eligibility
- Annual Audit & ITR Filing: If income exceeds ₹2.5 lakh
Common Mistakes to Avoid
- Using a restricted or similar trust name
- Vague or incomplete trust deed
- Skipping 12A/80G registration
- Non-maintenance of accounts & records
- Missing annual returns or audits
Trust vs Society vs Section 8 Company
| Feature | Charitable Trust | Society | Section 8 Company |
| Governing Law | Indian Trusts Act | Societies Reg. Act, 1860 | Companies Act, 2013 |
| Legal Status | No separate entity | No separate entity | Separate Legal Entity |
| Minimum Members | 2 Trustees | 7 Members | 2 Directors |
| Best For | Small NGOs | Large communities | Structured NGOs/Startups |
Why Choose Lal Ghai & Associates?
We are one of the most trusted Company Secretaries in Punjab, providing professional support for:
- Charitable Trust Registration in India
- Drafting of Trust Deed & Documentation
- 12A, 80G & FCRA Registrations
- Annual Filings & Legal Compliances
- End-to-End Advisory for NGOs, Societies & Section 8 Companies
Ready to Register Your Charitable Trust?
Give your cause the legal backing it deserves. Let Lal Ghai & Associates help you register your trust and ensure full compliance with government regulations.
Email: sumit@lgassociates.org
Call: +91-94636-40466
Offices in: Ludhiana | Mohali | Gurugram