Complete Guide to Registering a Trust in India
Registering a trust is a formal legal process that establishes a fiduciary arrangement wherein a settlor transfers assets to trustees, who are then responsible for managing them in the interest of designated beneficiaries. This process not only provides legal recognition but also safeguards the trust's property, builds transparency, and enhances public confidence in its objectives.
In India, trusts are broadly categorized into:
- Private Trusts – created for the benefit of specific individuals or families
- Public Trusts – established to serve philanthropic, religious, or charitable purposes for the general public
Why Trust Registration is Important
Registering a trust offers several benefits:
- Legal recognition and enforceability of the trust and its objectives
- Asset protection through a structured framework
- Eligibility for tax benefits under the Income Tax Act
- Enhanced credibility, especially for public charitable or religious trusts
- Public accountability, which encourages donations and compliance