Any non-profit organization can be registered in India as trusts, societies or a private limited company under section 8 of the Companies Act, 2013. They exist independent of the governments interference. The purpose of an educational trust is for the benefit of the beneficiaries to cater for their educational expenses and needs. The trustees are obligated to pay the income generated by the trust fund solely for the education of the beneficiaries and the failure of which will result in penalties if mentioned in the deed. The Trust Deed must be executed on Stamp Paper of suitable value and signed by the settler and two witnesses. Once the Trust Deed is executed, it can be registered with the Local Registrar. The Registrar would then register the Trust, retain photocopy of the Trust deed and return the original registered Trust Deed back to the settler.
