Legal documents for school

494 views 3 replies

hemant mangal

Director

25 Points Posted on 30 August 2014

Hi,

We have started a secondary school in Rajasthan just 1 year back. Now we are facing serious problems in managing the legal documents.

We are a bunch of 4 people who had invested in purchasing the school land in different share ratio. And subsequently school building was constructed. Now since school will always be running by a registered society, we have to give the building on lease to a society. Now we have following doubts regarding the legal documents:

Every year, do we need to have separate balance sheet for school as well as for society?
Since there is a chance of adding or removal of partners, should we register for a Pvt. Ltd. or LLP? Once we do that, we will transfer the names of 4 investors to a Pvt. Ltd/LLP in the land registration. Similar actions would be taken for society lead dead as well.

Please do let me know if I am not clear about my question at some point.

Regards,

Hemant

Replies (3)

BPAst

others

209 Points Posted on 13 November 2014

Dear Sir,

In my opinion, you can form a Trust where all the 4 of you can be trustees. A trust deed can be executed having its objective as educational one, with no other major objective. Have other allied objectives. that is o.k.

Further, you can run as many schools under this trust's management having school's identity seperately i.e. having seperately school's name. however for filing IT returns for school as well as trust income, you have to consolidate the figs under each head of income or exps. otherwise draw a coloumnar Income & Exps & Balance sheets.

A word of Caution : Please consider the provisions of the Trust Act before executing the Trust deed and also note that no profits / surplus can be distributed to trustees or any members under a Trust. Hence, do consult the experts before your actions.

Hope your doubts are cleared.

BPAst

others

209 Points Posted on 13 November 2014

Mihir

Wealth Manager

5293 Points Posted on 13 November 2014

You may form a society or a trust to run a school. Four of you may become the member of the society or trustees of the trust. You may form a pvt ltd or LLP to purchase and manage the land and building which is lease out to the school. So you have to maintain separate books of accounts for pvt ltd/llp and society/trust, and also file separate ITR.