Registration of academy
Querist : Anonymous
Querist : Anonymous
Please tell the legal formalities required to start an educational institution?
Also what are the statutory registration reqd to be done like trade license, service tax, etc.
https://www.caclubindia.com/forum/details.asp?mod_id=220749
Querist : Anonymous
Scenario:
A Private Limited Company (Pvt. Ltd.) wants to donate to a Trust.
The Trust wants to start an educational institution (academy).
Legal Formalities for Registration of Academy (through Trust & Pvt. Ltd.):
1. Formation of the Trust
Register the Trust under the Indian Trusts Act, 1882 (if in applicable state) or Public Trust Act (depending on state law).
The Trust deed should clearly specify the objective as education/establishment of an academy.
The Trust must have a registered office address.
2. Donation by Pvt. Ltd. Company to the Trust
The Pvt. Ltd. company can donate funds to the Trust as part of its Corporate Social Responsibility (CSR) or otherwise.
Donations should comply with the Companies Act, 2013 provisions for CSR (Section 135), if applicable.
Proper documentation and accounting of donation is essential.
3. Starting the Academy
The Trust or the company (if it wants) can start the academy.
If run by Trust: The academy will function under Trust’s governance.
If run by Pvt. Ltd.: The company will have to register as per applicable laws for educational institutions (less common).
4. Statutory Registrations & Licenses
Trade License from local municipal authority.
Registration under Shops & Establishment Act applicable to the state.
Tax Registrations:
Service Tax (or GST) if applicable (e.g., coaching services are generally exempted, but check specifics).
PAN and TAN for Trust and Company.
Recognition & Affiliation:
Apply for recognition/affiliation from the relevant educational board or authority (like CBSE, State Education Board) if you want to offer formal schooling or certification.
5. Other Legal & Compliance Requirements
Maintenance of proper books of accounts for the Trust.
Filing of Income Tax Returns by Trust to avail exemption under Section 12A/80G if applicable.
If the company is donating as part of CSR, it must comply with Schedule VII of Companies Act.
Summary:
Step Details
Register Trust Indian Trusts Act / Public Trust Act
Donation by Pvt Ltd As per CSR / donation rules under Companies Act
Start Academy Under Trust or Company
Obtain Trade License Local municipal authority
Register under Shops Act State-specific
Tax Registrations PAN, TAN, GST/Service Tax as applicable
Educational Board Affiliation Apply for recognition (optional)
Click here to login now
Similar Resolved Queries
- CG Tax On residential property
- Post Office RD Interest
- Applicable TDS for Purchase of Flat from NRI
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Eway bill for machinery reparing
- Gift of mutual fund units to daughter
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- Annual return of gst limit
- TDS ON CASH WITHDRAWALS...
- Not able to file ITR
- Building tax payment deduction in rental Income
- Foreign inward in ITR
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
