How to register an entity for social cause
Saloni Nigam
(Querist) 27 December 2013
This query is : Resolved
Hello,
I want to start an online platform for social cause where donors, beneficiaries, volunteers and NGOs can interact with each other. Here, donors will be able to make online payment towards specific programs like education of underprivileged children or medical illness. The online website will retain 10% of funds as operating cost and send remaining funds towards the social cause.
This online organization should have the right to generate funds from individual and private companies based in India and abroad. Apart from that, donors should get 100% tax benefit on their donation amount so that they stay motivated to contribute. At present, I am not banking on getting government grants as I have heard it is a tedious process to register an NGO.
I would like to know what is the best suitable entity which I should plan to register (trust, society, foundation or NGO or anything else) which will fulfill above requirements.
Please guide on the steps of registering it.
Thank you so much in advance,
Saloni
Devajyoti Barman
(Expert) 27 December 2013
This should be registered under Society registration Act.
Guest
(Expert) 27 December 2013
Social business query Afford Legal Fees.Consult a Lawyer
Thyagarajan
(Expert) 27 December 2013
I agree with Expert Mr. Barman.
You access http://bombayhighcourt.nic.in/libweb/acts/1860.21.pdf
through Google and get to know full details, discuss with parties who will go along with you on these.
You are about to start a good venture
All the best.
M V Gupta
(Expert) 27 December 2013
I agree. As suggested by Shri Barman u can consider registering under the Societies Registration Act, 1960. U may also have to compulsorily register the oragnization under the Bombay Public Trust Act, 1950, if u are registering the Society in Maharashtra.
Atlas Eva
(Expert) 28 December 2013
A Section 25 Company will be a best option for you. A sec 25 company will give your entity more powers and you can enjoy more benefits, when u compare to trust or society.
you plan is gud but it needs a lot of legal planning and care, which can be done only by a legal expert professional.
Further you will also need to get your Sec 25 NGO registered in Tax Dept for 80G and 12A Exemption. And Also in RBI for FCRA Registration for getting foreign funds.
Till date we have registered more than 15 Section 25 Companies
You can Contact us on
02226768026 9769797199
Raj Kumar Makkad
(Expert) 28 December 2013
Company shall have to be constituted which is a long process so better to go either for a trust or a society.
Guest
(Expert) 28 December 2013
I endorse M/S Atlas Eva
Saloni Nigam
(Querist) 28 December 2013
Thank you so much for all your replies and I really appreciate it!
As I understood from your replies and research on internet, the best option would be to register the Non-Profit entity as a society with a minimum of seven people onboard. Once it gets registered, then
I will have to go to income tax dept. for 80G and 12A Exemption and to RBI for FCRA Registration for getting foreign funds.
I will get in touch with a legal expert but before that I am trying to accumulate as much information as possible so that I have clarity in what I am doing.
I have few more questions at the moment and I would be grateful if you can reply:
1. Will all the seven members of NGO have equal rights or there is a way where I can get more power
in terms of execution decisions?
2. I have recently re-located to Bangalore city but my permanent house is in Gurgaon, Haryana. All my
documents like passport, aadhar card etc have address of my Gurgaon house. I have rent agreement
of my Bangalore apartment. Is it possible to get the non-profit registered in Bangalore? Otherwise,
I will have to go to Gurgaon for registration.
Thanks & Regards,
Saloni
Devajyoti Barman
(Expert) 28 December 2013
Yes, it is possible but you need to get more papers from Bangalore as well.
Thyagarajan
(Expert) 28 December 2013
1. Do not limit to the members to start the venture.to 7. The office bearers post of President,vice-president,secretary, joint secretary and treasurer and the rest to be members of will constitute the society.It is better you look for at least 20 members other than office bearers. You will have to make bye-laws of the society that proscribes various aspect of powers to office bearers and the way the association will function.You can approach local Registrar of Society to gather sample bye laws of societies that are similar to what you propose.
2.Your individual bio-date is not a thing that will be taken to account.The place of functioning of the societies is needed to be mentioned in bye-laws to start with.
We are there to guide step by step. Give a start to your good venture.
Rajendra K Goyal
(Expert) 29 December 2013
Proceed for registration of trust as per procedure advised by the experts.
BAALASUBRAMANNYAMM
(Expert) 31 December 2013
No option, except to go what the experts suggested.
Saloni Nigam
(Querist) 31 December 2013
At present, I am the only person working on this project while I am inviting relevant people to join the venture. That's why in near future, it seems difficult for me to gather 20 suitable people on board as suggested by Mr. Thyagarajan.
I am contemplating to proceed with 'Trust' instead of 'Society', because it is easier to register a trust and the rules are more flexible here. (As researched, unlike society, trustees can be selected for whole life and its easier to make amendments in trust.
Societies function only within a specified geographical area. And to make an all India level society, one needs at least eight members of which five should be from different states of India).
I think trust will be more appropriate in my case with around 5-6 trustees to kick off the project.
I hope I am moving in the right direction!
Thanks,
Saloni
Atlas Eva
(Expert) 31 December 2013
Dear Saloni
1 .You will need only 2 people to start the project
2. These two people will be main officers and decision makers for life, and be life time members
3. You can operate all over India, without any limits, since you are registring in Central Law and not State Law
4.You will get all flexiblility, that is that you can change main officers in just 24 hrs by filing a simple form
5. you will make members and these members have right to vote only once a year, you can make volunteers who shall participate but will not have right to vote
6. you shall get a license from central government to operate this NGO
7. You will get protection of your name of NGO, that means that once you register this name, no one else will get the same name and if anyone is trying to register an NGO in same name with MCA21 , the application shall be rejected by central government
8. you can use any address any where in India.
all this you will get in Section 25 Company
and its going to cost only Around Rs 30,000
and 2 months
hence we suggest that you go for a section 25 company , instead of selecting a wrong entity of " Trust"
Thank You
Atlas Eva Chartered Services LLP
Legal & Accounting & Tax Services
www.atlaseva.co.in
JT Rajasuriya, Chennai
(Expert) 01 January 2014
It your intention is for charitable purposes - then Charitable Trust should be the appropriate option.
Thyagarajan
(Expert) 01 January 2014
Get to know a trust that is functioning without trouble for at least couple years,how they get capital for the start etc.
If I find one in the passing I will let you know.
Thyagarajan
(Expert) 01 January 2014
Samridhdhi Trust
Put the above two words in Google search and it gives whole history of it ,how it is started etc
regards
