Private limited company with non-profit activities

#1 Jun 7th, 2014, 11:11
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#1
Hi there! I gonna found a recovery center for addicted people, here in India. Lawyer recommended me instead of NGO to establish a private limited company with non-profit activities. Is this correct way? My Background: I am a foreigner, I am also an addict with good experience of recovery. Also, what usual commission for the mediator lawyers company why is helping to make a registration?
#2 Jun 7th, 2014, 22:49
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#2
I am curious why your lawyer proposed that, unless there is a profit motive.

It is possible that in the long run a society/trust; a registered NGO may get more help/funds from the government than a private limited company. But your lawyers would know the best.

Here is an article detailing the procedures involved. Start a Business in Tamil Nadu. I do not know the cost of the lawyer/agent.
#3 Jun 8th, 2014, 14:47
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Thank you Ashyashwin. It is undoubtedly useful article. Tomorrow I will discuss this again. Yes, this is the reason, I mean helping from government. I don't like to make mistakes at the beginning. They (lawyers) asked for 50 thousand RS. Obviously I couldn't register it by myself, but such price seem's to be very expensive.
#4 Jun 8th, 2014, 21:29
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Quote:
Originally Posted by greenery View Post Hi there! I gonna found a recovery center for addicted people, here in India. Lawyer recommended me instead of NGO to establish a private limited company with non-profit activities. Is this correct way? My Background: I am a foreigner, I am also an addict with good experience of recovery. Also, what usual commission for the mediator lawyers company why is helping to make a registration?
I think your lawyer asked you to set up a company under Sec 25 of the Indian Companies Act.

What this essentially means is that you can set up a limited/private limited company without having to write "limited" or "private limited", and only for the purpose of promoting commerce, art, science, religion, charity. Also, please note that the income from the company cannot be distributed to anybody, it has to be necessarily put back into the company for further usage. Please clear your understanding with your lawyer in detail.

Sec 25 of the Companies Act is explained in detail here. I think this should help you to understand.
#5 Aug 26th, 2014, 14:14
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#5
May be somebody could recommend a reliable lawyer in Delhi??? My previous lawyer disappointed me. I spent a lot of money and wasted time with him.
While my stay in India he communicated and made the impression that the registration process is going on. But when I shifted back to Russia to change my visa,
He stopped to reply phones and messages after a couple of weeks. He started to reply just when I threatened that I inform the main office (he was a branch)
He told at the beginning that all procedures will take 25-30 days, but even into 1,5 months nothing was done. So, now I am in New Delhi and looking for reliable lawyer.

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