Trust vs section 25 company vs pvt. ltd. company

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Ravinder Saini (Querist)
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07 September 2015 Hi,
I want to start a Chain of Schools. Down the line I will also approach for VC Funding for expansion. I am starting my first school to showcase my concept. I am not sure what would be the best looking at my long term objective and what would be the pros and cons in the short and long term.

Core objective is rapid expansion using VC Funding. I am concerned about the exit route to offer to the VCs.

Which one of the following should I use as a parent body -
1. Trust
2. Section 25 company
3. Private Ltd. Company

Pl advise.

Regards,
Ravinder - 9896396299

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 September 2015 As you proposed using venture capital fund being in the nature of business start it as Private Ltd, Company.

Ravinder Saini

Ravinder Saini (Querist)
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07 September 2015 No, the first two projects will be self-funded. Only then shall I approach VC's for the next round of expansion.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 September 2015 For expansion you are opting for VC's so you can't go for a trust or section 8 company.

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