What licenses do i need ?
amar
(Querist) 06 November 2012
This query is : Resolved
Dear sir/ mam i want to run a lucky draw scheme. which licenses do i required to run this scheme? the scheme is to collect the sum amount of money from people & give them a sum rups of return to every one aftre a fixed time period and every month take a lucky draw and declare one no as a luky no and give him sum amount of money. so plz tell giude me thanks in advance
Raj Kumar Makkad
(Expert) 09 December 2012
You are required to form a Non-Banking finance company under the guidelines of RBI for this purpose.
prabhakar singh
(Expert) 09 December 2012
you can start lucky draw scheme free of cost among your customers of your business in India. Lottery is not permitted to private agencies. Lucky draw without contribution directly for the draw does not come under lottery act .It is treated as sales promotion scheme.
Even companies registered as non banking companies can not carry the lottery.
The business model conceived by you may be legally framed as a CHIT FUND which is required to be registered with REGISTRAR OF FIRMS AND CHIT FUND WHO ALSO REGISTERS NGOs.
Raj Kumar Makkad
(Expert) 09 December 2012
If any business firm collects money from general public and starts lucky draw scheme as is your case, you are required to form NBFC.
