Trust and company

A TRUST is formed for the purpose of charitable/community objectives.  A PVT LTD Co., is formed for the purpose of profit-oriented objectives. 

The income of the trust is tax-exempt (on fulfilling certain conditions), whereas, the PVT Ltd's income is not exempted from tax.

Registered Pvt Co., has to file certain returns, which is not so in case of a Trust.

Hi

1. IF we talk about companies act then is there any provision related to TRUST in it?
2. From legal view point like disputes, Will the trust be preferred as compared to company?

Hi

i also want to know, if we want to achieve some charitable objective then it is better to form Company or create TRUST. Please mention the reason of selecting the option.

Regards

Hinna Garg

1.  Both are different entities.  

2.  In legal point of view, a trust is also considered like a company, ie., it can sue or be sued. 

Keeping  the object in view, one can choose the formation.

Hi

You mean to say its better to form Company.

M i right?

Regards

Hinna Garg

 See Friends,

As far as your object of charitable purpose is concerned it wont make any difference if u form a Company or a Trust or a Society. The required form shall b determined on the basis of your needs which may differ from person to person. I have a Sectiopn 25 Client (Company not for Profit, Charitable u can say). That includes lots of expenses and time. It took me 9-10 months to form a Company u/s Section 25.

Whereas I have a Public charitable Trust which was formed in 15 days. Alos got 12AA and 80G Approval thereto easily.

In a nut shell what i mean to say here is that u should decide the form considering all such aspects. Cost, time availablity, nature of activitiesm, genuiness of the trust (whether genuine or just a tool for tax evasion etc.)

hope this would b helpful to u. 

regards,