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Ashwitaa Shetty (.)     04 July 2022

Yoga institute registration as a trust

A yoga teacher wishes to register her yoga classes as a Trust. Is it advisable to get registered as a Trust as per provisions of  Indian Trust Act,1882 or would forming a Section 8  company as per Companies Act, 2013 be a better choice. Please advise ? Also what benefits would a person get on registering as Trust as opposed to not be registered as a Trust?


 1 Replies

Mahi Manchanda   06 July 2022


A trust is a fiduciary relationship in which a trustor gives another party, known as the trustee, the right to hold title to property or assets for the benefit of a third party. Trusts are highly versatile vehicles that can protect assets and direct them into the right hands in the present and in the future, long after the original asset owner's death.

The Companies Act defines a Section 8 company as one whose objectives is to promote fields of arts, commerce, science, research, education, sports, charity, social welfare, religion, environment protection, or other similar objectives. These companies also apply their profits towards the furtherance of their cause and do not pay any dividend to their members. So, it makes the company a non profit organistion.

The yoga teacher should decide based on what she wants out of her business. 

I hope this answers your question.

Have a good day!


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