Sponsorship - Legal Formalities
Me and my friends are working on a project which help students in connecting with companies and startups to get sponsorship for their projects or events.. So We wants to know what are the legal formalities do we have to fulfill and any other things which you think is important to avoid any future problems..
Whether you want to run it as a business or as a trust/NGO? Solution depends based on structure of your organisation.
Suppose if you want to run it as a business, by charging certain fees for connecting with companies. You have to account your income and file income tax returns also have to register for service tax once receipts corss 9 Lakhs.
However if it is not for profit venture, then there are no tax or other things are involved since you are not making any money from these transactions.
But if you register it as a trust or NGO you need to register with income tax and file your returns every year. Other taxes may also be applicable based on structure of your business.
However for intial transactions, every acts has some limit for registration.
So, i advice you to start the good work without worrying about any compliance since most of them will not be applicable in starting. Once venture grow, you can contact professionals for registrations.