Formation of an old age home.
Ravi Kumar
(Querist) 17 August 2014
This query is : Resolved
I am Ravi Kumar and I am from Kolkata. I am a Marketing Professional, semi retired, having a keen interest to start a Society and implement a project relating to a Home for the Elderly around Kolkata.
I would sincerely appreciate advice with regards to registration of the said Society and with regards to other legal aspects relating to its operation.
I can be contacted over:
E-Mail: projects.blessed@gmail.com or
Cell: 9830047407.
Thanks in advance,
Ravi.
Devajyoti Barman
(Expert) 17 August 2014
Your idea is good.
Get in touch with an advocate.
Rajendra K Goyal
(Expert) 18 August 2014
For getting your society registered, consult a local lawyer.
R.K Nanda
(Expert) 18 August 2014
local lawyer can help.
Sourav Das
(Expert) 18 August 2014
dear client,
you can do it by forming a society or a charitable trust.
V R SHROFF
(Expert) 18 August 2014
FORM CHARITABLE TRUST.. VISIT SUCH OLD AGE HOMES; THERE ARE THOUSANDS IN INDIA . Any one can help you Ato Z, being similar interest to help mankind/ noble work..
malipeddi jaggarao
(Expert) 18 August 2014
Your proposed activity comes under NGO category. An NGO can be formed in three ways:
1. Trust
2. Society, and
3. Non profit Company
Old Age Home activity can be conducted either by forming (1) or (2) Society.
Non-profit organisations in India (a) exist independently of the state; (b) are self-governed by a board of trustees or ‘managing committee’/ governing council, comprising individuals who generally serve in a fiduciary capacity; (c) produce benefits for others, generally outside the membership of the organisation; and (d), are ‘non-profit-making’, in as much as they are prohibited from distributing a monetary residual to their own members.
After registration and lapse of some statutory period, you can obtain exemption from Income Tax for the donations you mobilize for this charitable activity.
Section 2(15) of the Income Tax Act – which is applicable uniformly throughout the Republic of India – defines ‘charitable purpose’ to include ‘relief of the poor, education, medical relief and the advancement of any other object of general public utility’. A purpose that relates exclusively to religious teaching or worship is not considered as charitable. Thus, in ascertaining whether a purpose is public or private, one has to see if the class to be benefited, or from which the beneficiaries are to be selected, constitute a substantial body of the public. A public charitable purpose has to benefit a sufficiently large section of the public as distinguished from specified individuals.
How to float a trust:
A public charitable trust is usually floated when there is property involved, especially in terms of land and building.
Legislation : Different states in India have different Trusts Acts in force, which govern the trusts in the state; in the absence of a Trusts Act in any particular state or territory the general principles of the Indian Trusts Act 1882 are applied.
Main Instrument : The main instrument of any public charitable trust is the trust deed, wherein the aims and objects and mode of management (of the trust) should be enshrined. In every trust deed, the minimum and maximum number of trustees has to be specified. The trust deed should clearly spell out the aims and objects of the trust, how the trust should be managed, how other trustees may be appointed or removed, etc. The trust deed should be signed by both the settlor/s and trustee/s in the presence of two witnesses. The trust deed should be executed on non-judicial stamp paper, the value of which would depend on the valuation of the trust property.
Trustees : A trust needs a minimum of two trustees; there is no upper limit to the number of trustees. The Board of Management comprises the trustees.
Application for Registration :
The application for registration should be made to the official having jurisdiction over the region in which the trust is sought to be registered.
The application form should be signed by the applicant before the regional officer or superintendent of the regional office of the charity commissioner or a notary. The application form should be submitted, together with a copy of the trust deed.
Two other documents which should be submitted at the time of making an application for registration are affidavit and consent letter.
How to float a Society:
Societies are registered under the Societies Registration Act, 1860, which is a federal act. In certain states, which have a charity commissioner, the society must not only be registered under the Societies Registration Act, but also, additionally, under the Bombay Public Trusts Act.
Main Instrument : The main instrument of any society is the memorandum of association and rules and regulations (no stamp paper required), wherein the aims and objects and mode of management (of the society) should be enshrined.
Trustees : A Society needs a minimum of seven managing committee members; there is no upper limit to the number managing committee members. The Board of Management is in the form of a governing body or council or a managing or executive committee.
Registration can be done either at the state level (i.e., in the office of the Registrar of Societies) or at the district level (in the office of the District Magistrate or the local office of the Registrar of Societies).(2)
The procedure varies from state to state. However generally the application should be submitted together with: (a) memorandum of association and rules and regulations; (b) consent letters of all the members of the managing committee; (c) authority letter duly signed by all the members of the managing committee; (d) an affidavit sworn by the president or secretary of the society on non-judicial stamp paper of Rs.20-/, together with a court fee stamp; and (e) a declaration by the members of the managing committee that the funds of the society will be used only for the purpose of furthering the aims and objects of the society.
No expert will contact you for giving advice. It is your duty to contact them in case of need. An idea just has come into your mind - transmit it into action. It is a service activity - be humble and polite.
My best wishes to you.
V R SHROFF
(Expert) 18 August 2014
Very well explained / in details / including boosting power of INCOME TAX SAVING / BY Expert : malipeddi jaggarao : Best of Luck ..
malipeddi jaggarao
(Expert) 18 August 2014
@Ld.Expert Shri V.R.Shroff - Thanks for your appreciation sir.
T. Kalaiselvan, Advocate
(Expert) 23 August 2014
You can follow the advise and suggestions of the expert Mr. M. J Rao in this regard.
