CA B.K.BANSAL (JOBS IN A PRIVATE CO.) 10 July 2008

Running a school business under Trust or under Company.

Dear All, My friend is going to start a school. Whether it is better to open school under Trust or under Company. i.e What is better option. Whether school is to be run under a trust or under the company? What are the merit or demerit of its ? Please suggest and give your valuable feedback on it. Thanks & REGards CA. B.K.BANSAL

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5 Replies

arunprakaash.m. (advocate) 10 July 2008

It is adviseble better to start a school with the trust name for getting tax benifits and also getting donation from NGOs. Company law has a complicates procedures and statutory returns one has to file year after year.

Manish Singh (Advocate) 10 July 2008

its always advisable to run an educational institution under trust or a society.still if its a company under section 25, you wil have the tax benefits and al that but still you will have to deal with some of the provisions of the Companies Act. So better go for some society or trust.

RAM DEO KAKRA (ADVOCATE ) 11 July 2008

its benificial and good planning to run the school under trust.starting the name.........fondation.and give the school name of choice.

K.Prakash Babu (Advocate) 19 July 2008

Please find out from your friend about the motive in opeining a school. If the motive is a non-commercial and charitable, it is advisable to open under a Trust or Society.

Roswell 15 June 2018

Running a school like a company is not a good approach because school should work to make the career of a students. But now unfortunately a lot of students are actually doing a proper business. For those profit is the preference and they play with the future of the students.However, I need best assignment help but we should change this approach and set the critetria to follow all schools.