Trust act and company act 2013

Querist : Anonymous (Querist) 14 November 2023 This query is : Resolved
Sir ,
I want to start a private limited company but i dont want any shareholder but i need the legal structure of a pvt limited company as I can have more than one director, hold shares and other tax benefits , can i register two private trust where i myself is the trustor or author of the trust and incorporate the company with the two trust as the shareholder ?
Please look into this matter!

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T. Kalaiselvan, Advocate (Expert) 15 November 2023
Under Companies Act, 1956 Section 153 clearly stated that a trust cannot hold shares. But there is no such corresponding section in the new Act.
However there is no infirmity for a trust to hold shares of a private limited company as per the new act

kavksatyanarayana (Expert) 15 November 2023
You can add a director to a company but any trust cannot be a shareholder. You can form two Trusts as you like but cannot incorporate the company except as a trustee.

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Trust act and company act 2013

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