Business legality advice Business legality advice

3 years ago

We are planning to start an online business which involves giving prize money or reward to customers. I would like to know if this is legal and if it is then how to obtain the license or permission to start the business

Devesh Tripathi

Responded 3 years ago

A.be very care ful and take advise of an advocate before starting as there is act which prohibits prize money and chit fund and such related work so contact an advocate who is practicing in criminal cases so that u could avoid any possible problem
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Abhimanyu Shandilya

Responded 3 years ago

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A.Your question cannot be answered without having fully understood what kind of prize money or game you are planning to have. As of now online gaming or lottery is not that greatly regulated the moment a game has any element of lottery or speculation involved then it becomes illegal.
Skill based games are kind of ok but speculation is not ok.
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Kishan Dutt Kalaskar

Responded 3 years ago

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A.Please read the following law and proceed...

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THE PREVENTION OF MONEY-LAUNDERING ACT, 2002
The Prize Chits and Money Circulation Schemes (Banning) Act, 1978
2.Definitions.-(l) In this Act, unless the context otherwise requires,-
Definitions
(fa) "beneficial owner" means an individual who ultimately owns or controls a client of a reporting entity or the person on whose behalf a transaction is being conducted and includes a person who exercises ultimate effective control over a juridical person;
(sa) "person carrying on designated business or profession" means,- (i) a person carrying on activities for playing games of chance for cash or kind, and includes such activities associated with casino; (ii) a Registrar or Sub-Registrar appointed under section 6 of the Registration Act, 1908 (16 of 1908) as may be notified by the Central Government; (iii)real estate agent, as may be notified by the Central Government; (iv) dealer in precious metals, precious stones and other high value goods, as may be notified by the Central Government; (v) person engaged in safekeeping and administration of cash and liquid securities on behalf of other persons, as may be notified by the Central Government; or (vi) person carrying on such other activities as the Central Government may, by notification, so designate, from time-totime;
(p) "money-laundering" has the meaning assigned to it in section 3;
3. Offence of money-Laundering.-Whosoever directly or indirectly attempts to indulge or knowingly assists or knowingly is a party or is actually involved in any process or activity connected proceeds of crime including its concealment, possession, acquisition or use and projecting or claiming it as untainted property shall be guilty of offence of money-laundering. 4. Punishment for money-Laundering.-Whoever commits the
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