CA. BIJENDER KR. BANSAL (ACA, B.COM) (8148 Points)
10 July 2008Dear 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
Yash Dave
(Finance Director and Company S)
(176 Points)
Replied 10 July 2008
Dear Mr Bansal
Indian Trust Act deals with the Private Trust and there are lots of tax planning opportunities available. Most of the high net worth individuals usually create such kind of trusts to distribute their assets to their children.
But if your friend wants to start his school business then i think its ideal to go for company formation due to various reasons.
Regards
Yash Dave
CAclubindia
