Formation of Trust/society
SANJAY
(Querist) 26 April 2009
This query is : Resolved
My company wants to form a benefit fund for its employee's with the object to help them financially,in which there will be monthly contribution from all the employee's. Should I form a society or trust? where should I register it? how much time does it take for registration in Maharastra.
Please advice.
A V Vishal
(Expert) 26 April 2009
Dear Sanjay,
You can either form a trust or a society, since legally there is no problem if you want to start a trust or society for the benefit of its employees. However, in a trust the settlor of the trust need to deposit certain amount to start the trust. The trust is much more simple to incorporate. The maximum time may be one week to ten days.The cost of incorporation is also low. The employees may be made trustees to manage their affairs themselves. In a society also, the cost involved is low, but it takes a lot of time to draft the byelaws and get it registered. The employees will be the members of the society.
The crucial point is taxation, so since it needs to be discussed at lenght I advise you to approach a good C A dealing in Tax matters to conclude.
sanjay singh thakur
(Expert) 26 April 2009
Dear sanjay
You can either form a trust or society. Moreover Trust should be registered before the Office of District Sub Registrar (Registrar of Assurance) and the Society before the IG of Registration under Society Registration Act. In case of Trust registration you just have to prepare a Trust Deed drafted by an expert and the same can be registered in one day. However in case of society registration after giving an application with relevant documents Viz. Challan, Non Judicial stamp, Memorandum, Rules and regulation etc. it will take nearly one month.
Y V Vishweshwar Rao
(Expert) 28 April 2009
Mr Thakur Explained in detail . The Trust Deed with all necessary declarations and clauses and terms of the Trust and all matters can be incorporated in the Trust Deed and Trust deed to be Registered with Registrar .
