How to open a public organization in India

Author: Helen Garcia
Date Of Creation: 21 April 2021
Update Date: 1 July 2024
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Content

So many people would love to quit their prestigious jobs and take up social work! If you are one of them, then you should know that setting up a community organization in India is not an easy task. But if you are determined, then we can help you.

Community organizations are associations that usually work to improve the well-being of a specific group of the population. Since they operate on a non-profit basis, their goals and methods of operation are often vague, unlike for-profit organizations. To achieve the goals, the functioning of such organizations must be thought out from the outset. In addition, there are a number of laws created by the government of India. Below you will find a short step-by-step guide to starting your own community organization in India.

Opening a community organization requires a willingness to serve for the benefit of others.

Steps

  1. 1 Define the issues that your community organization will deal with, as well as its mission and vision.
  2. 2 Before registering an organization, create a governing body that will be responsible for all activities and decisions of the organization. The governing body will be involved in all matters of strategic importance, including strategic planning, financial management, personnel management and networking.
  3. 3 Every civil society organization in India is required by law to document a trust deed / Letter of Intent / By-Laws containing the name and address of the NGO, its mission and objectives, information about the members of the governing body, staff and employees, rules and regulations, administrative laws and order of action.
  4. 4 In India, you can register a public organization under any of the following acts:
    • India Trust Act: Charitable trusts are not legally registered unless the trust plans to claim income tax exemption and is located in a state governed by the Public Trusts Act, such as Maharashtra.
    • Companies Registration Act: A company can be created by a group of seven or more people. Its creation is more complex than the creation of a trust, but it also offers more flexible regulatory conditions.
    • Companies Act: Associations created to promote the arts, science, commerce, religion or charity can be registered as companies, however, their members cannot receive dividends. All income should be directed towards the development of the company's goals.
  5. 5 Fundraising through internal sources (membership fees, sales, subscription fees, donations, etc.)or grants from the state, private organizations or foreign sources. Foreign donations are governed by the Foreign Donations Act 1976. Many community organizations can get tax exemptions - check if you are eligible and apply for tax exemption if you are eligible.
  6. 6 In addition to meeting the mandatory requirements above, you will need to establish professional contacts with other civil society organizations, government agencies, the media and the corporate sector. Like many other organizations, public associations develop mainly through strong collaboration.