Non profit org dealing with money, any legal obligities ?

[Adrian42]

Do you want to setup a business or do you want to go to jail?

What you write sounds more like the latter...

[geek5354]

Do you want to setup a business or do you want to go to jail?

I recommend San Quentin Prison where he could have the best of both worlds. They have an excellent start-up program where he can set up his business in jail, not to mention the standard perks like free housing and food.

[Rosamunda]

Why would you need to set up a non-profit making organisation in a tax haven?

This Non-Profit Organization will NOT have any Bank Account and will NOT take any donations too.

Whether or not an organisation has a bank account has no relevance here.

The business model is something like odesk.com where clients will seek programmers/developers for their project. Unlike Odesk, this non-profit will not deal with money directly. Clients say their price and pay the developers via paypal/moneybooker, etc.

So what is your added value in this process? There are plenty of companies in Finland offering similar services eg eWork but they offer added value in terms of selecting the right people for the job and managing all the statutory payroll requirements. People living in Finland need to work inside the system in order to secure their pension rights, unemployment benefits etc. Being paid cash via Paypal for piecework is not really a very attractive option for anyone who lives permanently in Finland.

The organization will have its own model to deal with frauds and those things

,
WHy? Since the organisation has no bank account, no money, no profit, no donations.... why would it have to "deal woth frauds"? I don't follow the logic.

but my concern here is: since the organization will not see Money will it have any legal obligations towards:

• Checkign and informing the government who in Finland receives money.

Probably not. The individual taxåayer is responsible for declaring his/her own income. They would have to operate as a toiminimi or Oy though as they would have no employer in your model. In fact, they would probably be better off working direct B2B with "your" clients and eliminate you, since you have no added value.

how VAT is passed or paid to the government or not.

No added value, no VAT. I stil don't get your business model. What are you doing exactly? Running a website / forum where people can look for jobs? The only revenue you might get would be from advertising.

The money earner have been paying Taxes and VATs legally

Probably not your problem if you have no contract between the "client" and the "service provider". But for most people the hassle of working in this way would probably mean they would go somewhere else eg to a company like eWork or Eazy that have some real added-value in the process.

Sine the Non-Profit can be run without registration too, and To overcome some problems I am planning to host it in Antarctica, or some Tax Heavens or Africa. But just to make sure, will I or my company who will pay for its Hosting, be in legal trouble

A non-profit organisation with no bank account, no profit etc etc is just a website. So legally you are probably in a similar situation to this guy: http://www.guardian.co.uk/technology/20 ... xtradition

[Adrian42]

No added value, no VAT. I stil don't get your business model.

It is pretty obvious:

The "for-profit" part of his operations will either be doing something completely illegal or will hide part of it's income from the Finnish government.

The only purpose of his "Non Profit Organization" will be to conceal the business he will be doing with his clients.

[cors187]

idea about sister organization which is Non Profit Organization.

Link your study pages?

[geek5354]

General links (to more links) not covered in viewtopic.php?f=37&t=2432:

+ Startup Digest: http://startupdigest.com/helsinki/ (Helsinki region)

+ The Business Model Canvas: http://www.businessmodelgeneration.com/canvas

+ Business Plan Tool: https://liiketoimintasuunnitelma.com/index.php

[Rosamunda]

... but this service provider non-profit organization will be supported by my company for paying the hosting fees, technical contribution, etc.

You said that your non-profit orgn has no bank account, no revenue, no profit, no donations.

So how can it pay the hosting fees? It has no money.

[cors187]

I am going to predict that when A is running and you can set up this Free B, that the non profit organization model wont seem so good>this doesn't include cross border regulations and whatever other complication you have.

[Upphew]

Why set up the non-profit?

[Mook]

Why set up the non-profit?

it will have no legal obligations towards:

Checkign and informing the government who in Finland receives money.
how VAT is passed or paid to the government or not.
The money earner have been paying Taxes and VATs legally

if (perceived-income > declared-income)
{
=)(/&-from-vero-Karhu()
}

[geek5354]

It sounds as if company A develops and sells specialized software while support and maintenance are crowd-sourced through non-profit B which operates a job board dedicated to company A's products. Anybody who bought A's products and needs support can post a job for the community of freelancers on the job board. The job board does not profit from job placements or matches. Its operation is entirely financed by company A.

Now the question is whether company A is legally liable for contract disputes and frauds occurring on the job board.

Am I close?

[Mook]

yes. yes. yes - very good.

but...

• how many open source projects end up in this position?
  how may freelancer's/contractor's contracts don't come from their employers?

[Upphew]

We should always start from positive note.

http://naurunappula.com/1048137/positiivinen-asenne.jpg

[geek5354]

Viability of the business model aside, I'm not a legal expert so I don't have the answer to your original question. However, it crossed my mind what if non-profit B accepts donations from anybody and A donates to B? B would have to pay taxes (whatever the rules are for non-profit organizations) but now the link between A and B is less obvious and direct.

[tjawatts]

As a Finnish company, when you pay somebody to do some work, you do have some responsibility to make sure they are paying taxes etc. You need to check they are entered in the "Prepayment register" that is they have some sort of business registered with the tax authorities, if they arent you have to withhold taxes.

http://www.vero.fi/en-US/Companies_and_ ... n_employer

"Nonwage compensation is payable for the performance of work, a one-off assignment, or for the rendering of a service. The obligation of the payor to withhold tax is in force only in case the beneficiary is not entered in the Prepayment register (Finnish: ennakkoperintärekisteri;Swedish:förskottsuppbördsregister). No payment of the employer's social security contribution is associated with the payment of a nonwage compensation."