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Bharath (Manager Medical Affairs)     15 February 2013

Charity firm

Hi,

I am from Bangalore and wanted to start a Trust to provide financial aid to the needy for healthcare purposes. The source of funds, I am looking it is from NRIs. So now, he mentioned that to get foreign funds, we need to take approval from Home Ministry and it is a tedious process. Need to spend a good amount of time before getting that approval and hence it shall take time. It is explained in this post as well:

https://www.lawyersclubindia.com/forum/Prior-Approval-from-Ministry-of-Home-Affairs-6063.asp#.UR5GNx16-Zh

But now, as an alternative I thought if I can start a proprietary firm for the same. In that case, will I be able to receive funds because RBI lays down guidelines that FDI is not possible in sectors like Agriculture, Real estate, Gambling, Tobacco Industry, Print media and few more. But this firm shall not come under this.

Some things which I am concerned is that, here no shares shall be given. I understand it is taxable, but if I am spending the funds for charity, then tax is not an issue. Is this allowed? Kindly guide me on this.



Learning

 2 Replies

Avadhesh Paliwal (advocate)     07 January 2014

without the permision of home ministry you can not process it ......and approval is not a tedious job if you want to requied help to take permission from home ministry you can consult to delhi advocate or ca they will provide you easily permission with reasonable fees.

 

Regards,

Avadhesh Paliwal 

prof s c pratihar (medical practitioner &legal studies)     09 January 2014

Have you registered under trust act or registration of societies act?you must know the terms and conditions  that conforms the memorandum of understanding.for charitable purpose  you apply for grant to state govt , mp MP MPLA quota. As wellas foreign grant.if purpose is for public relief no body is going to prevent you. Pl remember many organisations frudulently. utilising such facility for personal gain. Go ahead.  Dosomething for our teeming millions. Dr s c pratihar


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