Registration

[Amit Singh]

Dear Due,

 Please find the answers in red -

Vikash and Amit,

 

Please kindly update the team on the regulations and requirements for establishing Healing Life Now as a social enterprise in India. 

 

I would like to know:

1)      Legal Structure options and risk implications : for example Non-profit Non-governmental organization or limited liability company or corporation?

As discussed with the accountant the best option for our business will be LLP formation. The government has made the liaison very strict for the non profit organization as the are not giving the licence/certificate easily to this kind of organization due to miss use.

2)      Capital Contribution or Equity Funding minimum requirements or recommendations - for instance, the minimum authorized share capital for private limited companies in India seems to be INR 100,000.  Does this apply to social enterprises? 

Need to confirm

 

3)      Foreign ownership regulations or restrictions

Lot of legalities required in case of Non-profit organization. For LLP you will be shown one of the directors and will require only few self attested documents.

 

4)      Other requirements - proof of lease or address? other documentation needed 

Yes, your address proof and photo ID proof will be required.

 

5)      What is the tax regulation? Are social enterprises subject to corporate tax? personnel tax?

Need to confirm the above. But in case of non-profit the people give donations to the organization to get tax exemption. And in order to get that clearance is quiet difficult.

 

6)      what personnel benefits and contributions are required of employers? eg, health insurance, social security, etc

The benefits to the employers/employees depends on the company. There are couple of mandatory benefits to be given to the employees but then again those factors depends on the number of employees in the company.

 

7)      Will we need to hire legal support to submit the documentation? Or is it fairly easy to fill out and submit ourselves?  If we have to hire support, how much would the fees be? 

We will not be able to do it ourselves. A professional needs to do this work. The fee will depend on the yearly transaction.

 

Please also give me an idea of budget. 

1)      how much would rent for a modest office in Kolkata cost per month? How much space is optimal? 

If we go for the commercial place it will be quiet high say not less than 30000 a month in a good area. And if we manage in a average place then say approx 10000 a mont will be the rent.

 

2)      how much should we budget for utilities - electricity, water, gas, internet, phone, other? 

It will be 10000 a month approx.

 

3)      fees for hiring part-time accountant? 

5000-8000 a month approx.

 

4)      what other start-up expenses would come up? for example, office fit-out, including furniture, air con, office supplies, etc 

computer, cleaning staff,water purifier. These things we can make a list.

 

If you have found any good any white papers from PriceWaterhouseCoopers, Deloitte, Grant Thornton, E&Y, or a respected legal firm, please share with me. 

 

Many thanks,

I believe we should not delay anymore and go ahead with the registration of healinglifenow.

As the customer data base is increasing we need to open a bank account in the name of our company and make all the transactions legal and taxable. Else it will be against the law of karma.

 

We shall finalize the decision ASAP.

 

Thanks and regards,

 

Amit Narayan Singh

[Due Quach]

Hi Amit,

Thanks for this information.  Before you talk about the law of karma, a person must really contemplate causes and consequences. Karma is much deeper and covers much more than what you perceive.  

Team, 

Regarding the delay - you must ask yourselves the reasons why there has been such a delay. Has this delay happened for a reason?  Perhaps it was to reveal whether you guys are able to rise up to the challenge of running a business. 

We cannot register any business without am agreed upon budget, capital plan and business plan covering management and operational issues.  All partners must have a full understanding of what the legal commitments and regulations we must abide by are.  Once the company is established, there are serious legal responsibilities all shareholders and partners must fulfill.   And if anyone violates these obligations there are clear penalties, which include going to jail. 

From what I have observed, the team does not yet appreciate the full legal and financial implications of being a partner in a business. It appears also the team may not appreciate what having equity in the business means and how equity is different from revenue.  

The communication within this team is what a third party would call unhealthy.  Despite repeated requests from me for a team meeting, there is no follow-up from the India side. For a business to function, there has to be regular management meetings (at least 1 / month) and clearly defined roles and responsibilities with consequences if there is no accountability or performance of tasks.

I have not yet seen the team meet these standards.  So we cannot proceed to establish a real business entity until the team in India resolves these issues.  The risks are too great.  You must first deliver a budget for start-up costs and a business plan that demonstrates clearly that you all understand and commit to what is required to serve as a partner in this business.

All of you, please really look inside yourself and make the effort to learn more and push yourselves to take more responsibility for results and performance.  This is not a real partnership if people do not come through on their responsibilities and do not take ownership to make sure everything that is supposed to happen, gets done right. 

Thanks,

Due 

[Amit Singh]

Dear Due,

Thank you for the deep insight into the depth of Law Of Karma. Since my childhood I have heard and read a lot about the Law Of Karma but Maybe I am yet to understand the reality of Law Of Karma in a practical way. As no one is perfect and I am sure with my roots and with the blessings of my guru I will be able to understand and implement this cycle in a better way in the times ahead.

Dear Team,

I already spoke to Para about this. I am withdrawing myself as a partner from Healing Life Now. However, I will always be available for the Guru's work. If I can be of any help for Healing Life Now please let me know. Whatever short moment we experienced together was a learning experience.

Thanks & Regards,

Amit Narayan Singh

[Due Quach]

Hi Amit,

Thank you for this note.  I can imagine it was not the easiest decision to make and I respect your honesty. 

As you know Healing Life Now was conceived as a project to alleviate suffering and to spread prosperity.  My goal in starting this project is for Healing Life Now to benefit all the great healers I met in Kolkata with opportunities to prosper.  You will always be included in this special pool of people. 

Best,

Due 

[Amit Singh]

Thank you and best of luck :)

Good wishes,

Amit