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Trust and Society Registration
Overview
Establishing a Trust or Society is a common method to carry out charitable, educational, religious, or social service-oriented activities in India. These not-for-profit entities operate under different legal frameworks but share the goal of contributing to the public good.
Whether you’re planning to run an NGO, school, healthcare initiative, cultural promotion board, or a spiritual organization, getting your trust or society properly registered ensures legal recognition, credibility, and access to government benefits, including income tax exemptions.
Types of Non-Profit Entities in India
Choosing the right business structure is key to your long-term legal and tax strategy. Based on your needs, you may incorporate:
1. Trusts
Governed by: Indian Trusts Act, 1882 (for private trusts) and state-specific Public Trust Acts
Ideal for: Charitable, religious, or private family purposes
Popular in: Maharashtra, Gujarat, Rajasthan, and Madhya Pradesh
2. Societies
Governed by: Societies Registration Act, 1860
Ideal for: Educational, cultural, scientific, or social welfare activities
Popular for NGOs, clubs, associations
3. Section 8 Companies
Governed by: Companies Act, 2013
Structured as a company with charitable objectives
Requires MCA approval and offers greater regulatory oversight
Documents Required for Trust/Society Registration
| For Trust | For Society |
|---|---|
|
Trust Deed (on non-judicial stamp paper) |
Memorandum of Association (MoA) |
|
ID/address proof of settlor and trustees |
Rules and Regulations of the society |
|
Passport-size photographs |
ID/address proof of all members |
|
Proof of registered office (rent agreement/NOC) |
PAN of governing members |
|
Two witnesses at registration |
Address proof of society office |
Key Features and Requirements
Minimum Members:
Trust: Minimum 2 trustees (no upper limit)
Society: Minimum 7 members from different states for national-level registration
Governing Body:
Trust: Managed by Trustees
Society: Managed by a Governing Body or Executive Committee
Legal Identity:
Trusts are irrevocable; Societies can amend bylaws more flexibly
Tax Benefits:
Post-registration, entities can apply for 12A and 80G exemption certificates for tax benefits under Income Tax Act, 1961.
Step-by-Step Registration Process
For Trust:
Draft Trust Deed including objectives, trustees’ roles, and management
Get Deed notarized and signed by all trustees
Submit documents to Sub-Registrar of Trusts
Verification and physical visit (in some states)
Receive Registration Certificate
For Society:
Draft MoA and Rules & Regulations
Name approval check to avoid duplication
Submission of documents to the Registrar of Societies (state authority)
Scrutiny and approval
Issue of Society Registration Certificate
Post Registration Compliance
To ensure continued recognition and access to tax exemptions, registered trusts and societies must adhere to the following:
Annual filing of audited financials
Filing of Form 10A/10AB for 12A and 80G registration/renewal
Maintaining books of accounts and minutes
Filing returns with income tax authorities
For societies: filing of Annual List of Governing Body (Form VI)
Special Considerations
Name approval is subject to Registrar’s discretion—ensure it’s unique and compliant with objectives.
Foreign Contributions (FCRA): Trusts and Societies receiving foreign donations must register under FCRA.
Location-based Jurisdiction: Rules vary across states for society registrations.
Charitable Purpose Definition: Must be aligned with Section 2(15) of the Income Tax Act.
Frequently Asked Questions
A Private Limited Company restricts the transfer of shares and limits the number of shareholders to 200. It cannot raise funds from the public. A Public Limited Company, on the other hand, can offer shares to the general public and must have at least seven shareholders with no upper limit. Public companies must comply with stricter regulations under the Companies Act, 2013.
A Limited Liability Partnership (LLP) is a hybrid business structure combining features of a partnership and a company. It provides limited liability to its partners, meaning their personal assets are not at risk for business debts. Unlike a company, an LLP does not require compliance with extensive regulations.
The key difference is liability protection. In a partnership firm, partners are personally liable for business debts, whereas in an LLP, liability is limited to the extent of the partners’ contributions. Additionally, LLPs are governed by the LLP Act, 2008, while partnerships are regulated under the Indian Partnership Act, 1932.
A company has shareholders and directors, while an LLP has partners managing operations.
A society is a non-profit organization registered under the Societies Registration Act, 1860, for charitable, cultural, religious, or educational purposes.
A trust is a legal arrangement where assets are held by a trustee for the benefit of beneficiaries. It is governed by the Indian Trusts Act, 1882.
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