Query ?? plz reply

Forming a Trust is suitable, in my opinion. Service tax will be applicable.

what is the role and problems of disclosure?

For setting up a private trust do we need a trade license? what is the tax implications of a private discretionay trust? 

@ Radha Sarda : for forming a trust we have to register under charitable trust act....

@ mihir : mihir can u please confirm ?

Please tell me its urgent...

@ supriya dutta : I didnt get you???

In my opinion the business must be taken over by a legal authority. So mere forming of trust cannot convert illegal into legal. 

 Acts like bonus,gratuity,epf,esi will be applicable.

A trust can be formed but it will not get exemption under sec 11.

Service tax will apply.

company u/s 25 also cannot be formed .

Thus a co-operative or trust ... any of them can be formed to take over the business.

Before deciding the form of organisation, ascertain who will be responsible for the decision making process on the top level. Who is willing to put in enough time and energy to be accountable for such an endeavour? A trust deed will be required for submission to the charity commissioner stating all the activities, functions, assets, liabilities, responsibility as well as powers of the trustees. You will be have to hold many meetings for discussing these issues and only then you can proceed further. If this activity is run by the student for the student, make sure the students who are in charge are serious enough to continue this work because there could be better opportunities for these students than running a trust. You know what I mean.