form of business entity
sanjay kumar Soni
(Querist) 06 October 2009
This query is : Resolved
What is the best form of business entity i.e. Society, Trust or Company for running schools, colleges, other Educational activities at large scale.
Manish Singh
(Expert) 06 October 2009
it would be appropiate for you to form a society and get it registered, for efficient management. you may also commence your activities after incorporating a public trust. if you want your organsation to be more accountable to public at large then go for a company under section 25 of the Companies Act.
sanjay kumar Soni
(Querist) 06 October 2009
Thanks Manish ji, Lans cost and Total capital expenditure on school building will be about 1.5 crores. How the contributories should safeguard their fund. ?
vinjamuri ranga babu
(Expert) 06 October 2009
hello,
lot of difference between society, trust and company. Society is a group of persons for their benefits. Trust is to established to do some and certain public help who are in needy. company is meant for purely on business. /So, kindly gothrough and select as per your need and necissity with the help of Legal Expert.
'vr
Manish Singh
(Expert) 06 October 2009
once the money goes into the funds of society/ public trust/ sec 25 company, it becomes the property f that entity and the management board takes care of that fund.. so no worries. even if u do not spend substantial amount for cahritable purposes, u will nt be exempted from income tax. so ths makes it obligatory on the organisation to spend for public purposes. u can also make suitable provisions in the moa of the organisation or in the trust deed.
Manish Singh
(Expert) 06 October 2009
Mr. Ranga Babu,
all th three entities can be formed for charitable purposes. please check this up in the relevant acts.
Raj Kumar Makkad
(Expert) 06 October 2009
Frist of all understand all these entities and then decide which of the entity suits u becs all of them have different benefits and lacunae.
Sachin Bhatia
(Expert) 08 October 2009
For running schools, colleges, other Educational activities it is better for you to form a society and get it registered.
Kumar Thadhani
(Expert) 08 October 2009
In your case it is best opinion to form the society as your business entity and to get registered since the relevant societies laws are corelated with Incometax laws and the income is exempted from incometax.
