Quick Answer: A trust in Pakistan is created under the provincial Trusts Act, by a written trust deed executed by the settlor in favour of the trustees. The deed is then stamped under the applicable provincial Stamp Act and registered at the office of the Sub-Registrar under the Registration Act, 1908. Registration is not what creates the trust; the trust is created by the deed itself. Registration makes the deed publicly recorded and enforceable against third parties. Separate routes exist for charitable societies (Societies Registration Act, 1860) and welfare agencies (Voluntary Social Welfare Agencies Ordinance, 1961).
What a Trust Is Under Pakistani Law
Under the federal Trusts Act, 1882, read with any applicable provincial legislation, a trust is defined as an obligation annexed to the ownership of property, arising out of a confidence reposed in and accepted by the owner, or declared and accepted by him, for the benefit of another person or of another and the owner. The three essential parties are:
- The author or settlor — the person who reposes the confidence.
- The trustee — the person in whom the confidence is reposed and who accepts it.
- The beneficiary — the person for whose benefit the trust is created.
The historic provincial Trusts Act was repealed in 2020. Trusts in Pakistan are now governed by provincial legislation: the Punjab Trusts Act, 2020, the Sindh Trusts Act, 2020, the KP Trusts Act, 2021, the Balochistan Trusts Act, 2021, and the ICT Trusts Act, 2020. Each provincial Act governs the creation, administration and extinguishment of trusts within its territorial jurisdiction.
Creating the Trust vs. Registering the Deed
This distinction matters more than almost anything else on the subject. A trust is created when the settlor executes a valid trust deed and transfers the trust property to the trustees in accordance with that deed. Registration is a separate, subsequent step governed by the Registration Act, 1908 and the relevant provincial Stamp Act.
A trust can, in principle, exist without registration. But an unregistered trust deed faces practical and legal consequences: it cannot be produced as evidence of the trust in a court proceeding where registration is required, and it cannot be enforced against third parties who have acquired an interest in the trust property.
The Legal Framework
- provincial Trusts Act — creates and governs trusts. Sections 5 to 10 deal with creation; Sections 46 to 54 deal with the trustee’s duties; Sections 77 to 79 with extinction.
- Registration Act, 1908 — governs registration of documents, including trust deeds, at the office of the Sub-Registrar of Assurances in the relevant district.
- Provincial Stamp Acts — the Punjab Stamp Act, 1899, the Sindh Stamp Act, 1899, the NWFP (now KP) Stamp Act, and the Balochistan Stamp Act prescribe stamp duty on trust deeds. Rates vary by province.
- Societies Registration Act, 1860 — an alternative route for charitable and literary societies.
- Voluntary Social Welfare Agencies (Registration and Control) Ordinance, 1961 — an additional registration for social welfare organisations, administered provincially.
- Income Tax Ordinance, 2001 — governs the tax treatment of trust income, and in some cases requires the trust to obtain a National Tax Number.
- Transfer of Property Act, 1882 — applies where the trust property is immovable and requires a registered instrument of transfer.
Important: There is no single federal “Trust Deed Registration Rules” that applies uniformly across Pakistan. Registration procedure and stamp duty are provincial.
Types of Trusts and Which Route Applies
| Type | Primary governing law | Registration office |
|---|---|---|
| Private family trust (settlor, trustees, beneficiaries) | provincial Trusts Act | Sub-Registrar under Registration Act, 1908 |
| Charitable trust | provincial Trusts Act as a trust, or Societies Registration Act, 1860 as a society | Sub-Registrar, or Registrar of Societies, depending on the route |
| Social welfare agency | Voluntary Social Welfare Agencies Ordinance, 1961 | Provincial Directorate of Social Welfare |
| Employee benefit or pension trust | provincial Trusts Act read with the applicable employment or income-tax law | Sub-Registrar |
The route a settlor chooses depends on the purpose of the trust, the tax consequences, and whether the trust will seek tax-exemption recognition from FBR.
Documents Required
- The trust deed, drafted in accordance with the provincial Trusts Act.
- CNIC copies of the settlor, trustees and, where applicable, the beneficiaries.
- Proof of ownership of the trust property being settled into the trust.
- Valuation of any immovable property for stamp duty purposes.
- Stamp paper of the required value, or a stamp duty payment receipt.
- Two witnesses with CNICs.
- Affidavit of execution, where the Sub-Registrar requires it.
- Passport copies, where any party is a foreign national or non-resident.
- Prior NOC from the relevant authority, where the property being settled requires one.
Step-by-Step Procedure
- Draft the trust deed — prepare a deed under the provincial Trusts Act that identifies the settlor, trustees, beneficiaries, trust property, purpose, and powers of the trustees.
- Sign and witness the deed — the settlor and trustees sign in the presence of two witnesses, who sign as attesting witnesses.
- Determine and pay stamp duty — compute the stamp duty under the applicable provincial Stamp Act. Pay through the designated channel.
- File at the Sub-Registrar’s office — submit the deed, stamp duty proof, CNICs, property documents and required affidavits.
- Appear before the Sub-Registrar — the settlor, trustees and witnesses appear for execution and verification where required.
- Pay registration fee — the Sub-Registrar charges a registration fee under the Registration Act, 1908.
- Receive the registered deed — the Sub-Registrar enters the deed in the register and returns the original, stamped and registered, to the settlor or trustee.
- Post-registration steps — obtain the trust’s NTN from FBR if the trust generates income; apply for tax-exemption recognition if the trust is charitable; update property records where immovable property has been settled.
Fees, Stamp Duty and Timelines
Stamp duty on a trust deed is set by the provincial Stamp Act and varies by province. In Punjab, the Punjab Stamp Act, 1899 prescribes rates that depend on the nature of the property and the trust. In Sindh, the Sindh Stamp Act, 1899 applies. Registration fees are set under the Registration Act, 1908 and provincial rules. Timelines at the Sub-Registrar’s office depend on the district, the completeness of documents, and whether any property valuation is required. Do not rely on any single figure — confirm current stamp duty and registration fee with the relevant Sub-Registrar before executing the deed.
Consequences of Not Registering
- An unregistered trust deed cannot be produced as evidence in a court proceeding where registration is mandatory under the Registration Act, 1908.
- A trust involving immovable property is not binding on third parties unless the deed is registered.
- Transfers of immovable property into a trust may be ineffective against subsequent purchasers if the instrument of transfer is not registered.
- FBR tax recognition for charitable trusts generally requires a registered trust deed.
Common Mistakes
- Assuming that signing the trust deed creates a public record. It does not — registration at the Sub-Registrar’s office does.
- Underpaying stamp duty. Under-stamped deeds are inadmissible until the deficit and any penalty are paid.
- Using an outdated template that does not reflect the provincial Trusts Act requirements on trustee powers, beneficiary identification and extinction.
- Confusing a private trust with a charitable society. They are registered in different offices under different laws.
- Settling immovable property without executing a proper transfer instrument alongside the trust deed.
- Failing to obtain an NTN for the trust when it generates income.
Practical Checklist
- Confirm the purpose of the trust — private, charitable, or welfare.
- Draft the trust deed with a qualified lawyer.
- Identify the settlor, trustees and beneficiaries with CNIC copies.
- Determine stamp duty under the relevant provincial Stamp Act.
- Execute the deed before two witnesses.
- File at the Sub-Registrar’s office with all supporting documents.
- Obtain the registered original and a certified copy.
- Apply for FBR NTN if applicable.
- Update property records if immovable property has been settled.
Frequently Asked Questions
Is a trust legally created by registration or by the deed itself? The trust is created by the trust deed executed by the settlor. Registration records the deed publicly but is not what creates the trust.
What is the main statute governing trusts in Pakistan? The provincial Trusts Act, which remains in force as a federal statute.
Where is a trust deed registered? At the office of the Sub-Registrar of Assurances in the relevant district under the Registration Act, 1908.
Is stamp duty payable on a trust deed? Yes. Stamp duty is set by the applicable provincial Stamp Act and varies by province.
Can a trust be registered without a lawyer? There is no legal requirement for a lawyer, but given the drafting requirements under the provincial Trusts Act, professional assistance reduces the risk of an ineffective or inadmissible deed.
What is the difference between a trust and a society? A trust is created under the provincial Trusts Act and registered at the Sub-Registrar’s office. A society is registered under the Societies Registration Act, 1860 at the office of the Registrar of Societies. Both are commonly used for charitable purposes.
Can a foreign national create a trust in Pakistan? Yes, provided the property being settled is situated in Pakistan and the applicable provincial stamp and registration requirements are met. Foreign exchange and tax considerations may apply.
Does a trust need an NTN? A trust that generates taxable income should obtain an NTN from FBR. Charitable trusts seeking exemption must also obtain the relevant FBR recognition.
Can a trust deed be amended after registration? Yes, through a supplementary deed executed by the settlor and, where applicable, the trustees, and registered in the same manner.
What happens if the trust deed is not registered? The deed may not be admissible in evidence where registration is mandatory, and the trust may not be enforceable against third parties, particularly where immovable property is involved.
Final Takeaway
A trust in Pakistan is created by a deed under the provincial Trusts Act. Registration at the Sub-Registrar’s office under the Registration Act, 1908, together with payment of the applicable provincial stamp duty, gives the deed public effect. There is no single federal trust-registration rule. The route depends on whether the trust is private, charitable or a welfare agency. Because stamp duty and registration practice vary, any figure for fees or timelines must be confirmed with the relevant Sub-Registrar before execution.
Need Help with a Trust Deed or Registration?
Pak Legal Desk assists with legal research, document review, and legal consultation for settlors, trustees and charitable organisations dealing with trust deeds in Pakistan. If you are creating a trust, registering a deed, or dealing with a dispute over trust property, you can request a legal research brief or a consultation through our platform.
Before acting on any specific fee, deadline, form or procedural requirement described in this article, readers should confirm the current position directly with the relevant official source: the Pakistan Code (pakistancode.gov.pk), the applicable provincial code site, SECP (secp.gov.pk), the Directorate General of Immigration and Passports (dgip.gov.pk), the Federal Board of Revenue (fbr.gov.pk), or the relevant provincial police or transport authority.
Official Fees and Where to Check Them
Stamp duty and registration fees on a trust deed are set by provincial law. They depend on the province, the nature of the trust property, and the value of the property being settled. Rates are revised through provincial finance acts and notifications.
Confirm the current stamp duty and registration fee with the relevant provincial Board of Revenue and with the Sub-Registrar of Assurances in the district where the trust property is situated.
- Punjab: Board of Revenue, Punjab – Board of Revenue, Punjab.
- Sindh: Government of Sindh – sindh.gov.pk
- Khyber Pakhtunkhwa: Government of Khyber Pakhtunkhwa – kp.gov.pk
- Balochistan: Government of Balochistan – balochistan.gov.pk
The relevant Sub-Registrar of Assurances is the authority that will finally assess and collect the fee.
Legal Information Disclaimer
This article is for general educational and informational purposes only. It is based on Pakistani law as understood at the time of writing. Stamp duty, registration fees and provincial practice vary and change periodically. This article does not constitute legal advice and does not create a lawyer-client relationship. No guarantee of any outcome is provided. Readers should verify the current position with the relevant Sub-Registrar and obtain professional legal advice for their specific circumstances.