Establishing a trust in Delhi is a strategic move for individuals and organizations aiming to achieve philanthropic, educational, religious, or personal objectives. Governed by the Indian Trusts Act, 1882, trust registration in Delhi ensures legal recognition, tax benefits, and credibility. This guide explores the process, types, costs, and advantages of registering a trust in the capital city. Partner with TrueX, a trusted legal service provider, for seamless trust registration in Delhi.
What is Trust Registration?
Trust registration is the formal process of creating a legal entity to manage assets or property for the benefit of specific individuals, groups, or causes. A trust involves three key parties:
- Settlor/Author: The founder who transfers assets into the trust.
- Trustee: The individual/organization responsible for managing the trust.
- Beneficiary: The person(s) or cause benefiting from the trust’s assets.
Trusts in Delhi are categorized into two types:
- Public Trust: Established for charitable, educational, or religious purposes (e.g., NGOs, schools).
- Private Trust: Created for family members or specific individuals to manage wealth or property.
Why Register a Trust in Delhi?
- Legal Compliance: Mandatory for trusts managing assets or receiving donations.
- Tax Exemptions: Eligibility under Sections 12A and 80G of the Income Tax Act.
- Credibility: Enhances trustworthiness for donors and beneficiaries.
- Asset Protection: Safeguards assets for intended purposes.
Requirements for Trust Registration in Delhi
To register a trust in Delhi, fulfill these criteria:
- Minimum Two Trustees: Must be Indian residents.
- Registered Office: A valid Delhi address (rent agreement/NOC + utility bill).
- Trust Deed: Legally binding document outlining objectives, rules, and beneficiary details.
- Notarization: Trust deed must be notarized on e-stamp paper (value based on asset worth).
Documents Required:
- PAN, Aadhaar, photos, and contact details of trustees, author, and witnesses.
- Address proof of the registered office (electricity bill/rent agreement).
Step-by-Step Trust Registration Process in Delhi
Follow this streamlined process with TrueX:
Step 1: Choose a Unique Trust Name
Select a name that doesn’t resemble existing trusts, trademarks, or government bodies.
Step 2: Draft the Trust Deed
Include clauses about objectives, trustee roles, beneficiary rights, and dissolution rules. TrueX’s legal experts ensure compliance with the Indian Trusts Act, 1882.
Step 3: Submit to Sub-Registrar Office
Book an appointment, pay stamp duty (varies by asset value), and submit:
- Original trust deed
- ID proofs of trustees and witnesses
- Affidavits and address proof
Step 4: Verification & Certificate Issuance
The Registrar verifies documents and may inspect the office. Upon approval, receive the registration certificate.
Step 5: Apply for PAN & TAN
Obtain PAN and TAN for tax compliance and banking operations.
Cost of Trust Registration in Delhi
TrueX offers affordable packages starting at ₹5,999 (excl. stamp duty):
- Trust deed drafting
- PAN & TAN application
- End-to-end legal support
Post-Registration Compliance
- File annual IT returns.
- Maintain audit reports and financial records.
- Renew 12A/80G certifications periodically.
FAQs: Trust Registration in Delhi
Q1. Is trust registration mandatory in Delhi?
Yes, for legal recognition and tax benefits.
Q2. How long does trust registration take?
Typically 15–20 days with TrueX.
Q3. What’s the difference between a trust and a society?
Trusts focus on asset management; societies are member-driven for cultural/social goals.
Q4. Can a trust own property?
Yes, once registered.
Q5. What are the tax benefits?
Exemptions under Sections 12A (income tax) and 80G (donations).
Q6. Can a private trust become a public trust later?
No—objectives must be declared during registration.
Why Choose TrueX for Trust Registration in Delhi?
- All-India Services: PAN India legal support.
- Transparent Pricing: No hidden charges.
- 24/7 Assistance: Dedicated customer care.
Start your trust registration in Delhi today! Contact TrueX at +91 92112 14435 or submit a query below.