Dear Friends
Can anyone pass me a Note on Trust vs. Section 25 Company.(Including Cost of formation,Taxability of both)
Regards
Ankush
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Trust vs. Section 25 Company
Replies (5)
| Originally posted by :ankush83 | ||
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Dear Ankush, Cost of Formationa and Taxes would b higher in 25Comp as compared to trsut. Further there would a direct interfierence in 25 Company. If possible go for a Trust. That would take lesser time for formation. Sec 25 would take minimum 3 months. Changes would b harder in 25 than Tr. Compliances in 25 comp. more than trust. I would advise to go for a Trsut. |
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i agree with NIRAV ...............besides the registration of a Section 25 company is very cumbersome and u need to pay a lot and conduct the business in accordance with the regulations of the Companies Act whereas a trust can be formed by registering the trust deed with the district registrar and the conduct of the trust business can be provided for in the trust deed.
hey guyz....I appreciate your view points.But i am looking at a comparative analysis on Trust vs. Section 25 Company.it would be great if some one could share it.Thanks in advance...
Dear Ankush,
Please find below the comparative chart:
Comparision among Trust, Society and Non profit Company
| Trust | Society | Section-25 Comapny | |
| Statute/Legislation | Relevant State Trust Act or Bombay Public Trusts Act, 1950 | Societies Registration Act, 1860 | Indian Companies Act, 1956 |
| Jurisdiction | Deputy Registrar/Charity commissioner | Registrar of societies (charity commissioner in Maharashtra). | Registrar of companies |
| Registration | As trust | As Society In Maharashtra, both as a society and as a trust |
As a company u/s 25 of the Indian Companies Act. |
| Registration Document | Trust deed | Memorandum of association and rules and regulations | Memorandum and articles of association. and regulations |
| Stamp Duty | Trust deed to be executed on non-judicial stamp paper, vary from state to state | No stamp paper required for memorandum of association and rules and regulations. | No stamp paper required for memorandum and articles of association. |
| Members Required | Minimum – two trustees. No upper limit. | Minimum – seven managing committee members. No upper limit. | Minimum three trustees. No upper limit. |
| Board of Management | Trustees / Board of Trustees | Governing body or council/managing or executive committee | Board of directors/ Managing committee |
| Mode of Succession on Board of Management | Appointment or Election | Appointment or Election by members of the general body | Election by members of the general body |
Regards,
Can anybody send me a copy of Memorandum of Association and Articles of Association for a Company under section 25, Pl.
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