SHEMANTI SEN 28 February 2019

Ngo registration

I am planning to setup a NGO - one of friends has expressed his concurrence to produce NOC for using his home address as the registered office for the NGO . He is a businessman by profession using the same home address as his business address . Is there any tax implications if the same address is now being used for NGO registration . Is there also the possibility of him renting to us at a notional rent and giving a NoC

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SIVARAMAPRASAD KAPPAGANTU (Retired Manager) 01 March 2019

If your intentions are genuine and no hidden agenda is there, you shall not encounter any problems by using the same address of your friend. Why only using the address? What about functioning of the NGO? Don't you need space? Where will you take the space? May be a different address? or the same address of your friend? If you are going to use the space provided by your friend for the activities of NGO, you can have a rent agreement for payment of some nominal rent. That will solve all the problems.

It all depends upon your real intention for establishing the NGO. If it is only "on the paper NGO" and funds are being received in the name of NGO, then you shall be under the scanner of various authorities concerned. In case you are planning to get donations/contributions from abroad, you have to take specific written permission from Ministry of Home Affairs in therms of FCRA Act.

SHEMANTI SEN 01 March 2019

No we r using friend place for registered address purpose. For that we will go with him on a rent agreement on a nominal rate. For NGO activities we will be taking another place on rental. Our purpose and intensions are definitely genuine.. No doubt on that.. It's all OK to proceed like thay