What is Charitable trust? How to Register charitable or welfare trust?

A Welfare Trust is a major legal structure used for charitable and social development purposes.¹

Here is a breakdown of what a Welfare Trust is and the typical documentation required for its registration in India.

1. What is a Welfare Trust?

A Welfare Trust, often referred to as a Public Charitable Trust (PCT), is a non-profit legal entity established for the purpose of serving the public or a section of the public.²

It is formed when an individual (the Settlor or Author) transfers property or funds to a group of people (the Trustees) with a legally binding instruction that they hold and manage those assets for the benefit of a specified group (the Beneficiaries), which, in this case, is the public at large or a specific marginalized community.³

Key Objectives of a Welfare Trust:

Category	Typical Activities
Poverty Relief	Providing food, shelter, clothing, and financial aid to the poor.
Education	Running schools, granting scholarships, offering vocational training, and promoting literacy.
Healthcare	Establishing hospitals, medical camps, dispensaries, and providing medical relief.
Social Justice	Advocating for the rights of marginalized groups and community empowerment programs.
Disaster Relief	Providing immediate aid and rehabilitation during natural calamities.

Governing Law (India):

While private trusts are governed by the Indian Trusts Act, 1882, public charitable trusts/welfare trusts are often governed by:⁴

• State-specific Public Trust Acts (e.g., in Maharashtra and Gujarat).⁵

  
  

• The general principles of Indian trust law and the Income Tax Act, 1961 (especially for tax exemptions).

2. Documents Required for Trust Registration (India)

The most crucial document is the Trust Deed, which acts as the constitution of the trust.⁶

For registration, you typically need to submit the following documents to the local Sub-Registrar's Office or the Charity Commissioner's Office (depending on the state):

A. The Primary Document: Trust Deed⁷

The Trust Deed must be:

• Drafted on non-judicial stamp paper of the value prescribed by the respective state.⁸

  
  

• Signed by the Settlor and all Trustees.⁹

  
  

• Attested by at least two witnesses.¹⁰

  
  

• The deed must explicitly state:

  • The name and address of the Trust.¹¹

    
    

  • The names and addresses of the Settlor and all Trustees.

  • The clear, charitable Objectives of the Trust.¹²

    
    

  • Details of the initial trust property (corpus/funds).¹³

    
    

  • Rules regarding the appointment, removal, and powers of Trustees.¹⁴

    
    

  • Provisions for the dissolution of the Trust.¹⁵

    
    

B. Identity and Address Proofs (KYC)

You need copies of the following for the Settlor and all Trustees:

• Proof of Identity: Aadhaar Card, PAN Card, Voter ID, or Passport.¹⁶

  
  

• Proof of Address: Aadhaar Card, Electricity Bill, or Bank Statement (recent).¹⁷

  
  

• Passport-size photographs of the Settlor and Trustees.¹⁸

  
  

C. Trust Office/Registered Address Proof

• Proof of Registered Office Address:

  • If owned by the Trust/Trustee: Copy of the property title deed or ownership document.

  • If rented/leased: Copy of the Rent/Lease Agreement.¹⁹

    
    

• No-Objection Certificate (NOC): A signed NOC from the property owner stating they have no objection to the property being used as the Trust's registered office.²⁰

  
  

• Utility Bill (e.g., electricity or water bill) as address proof.²¹

  
  

D. Other Required Filings

• Application for incorporation/registration.

• Declaration signed by the trustees.²²

  
  

Important Note: After the Trust Deed is registered with the Sub-Registrar, the trust usually needs to apply separately for a PAN Card in the trust's name and subsequently register under Section 12A/12AB and Section 80G of the Income Tax Act to claim tax exemptions and allow donors to claim tax deductions.²³ For trust Registration visit: www.dokda.in