Why Do We need FCRA Registration?Posted by Enterslice on January 25th, 2019 Introduction:With the overall growth in different sectors, India started to develop relations with a foreign institution, trade unions, companies in foreign and firms, this led to a suspension of establishing such relation with a foreign entity which shall influence the national life of India. The main prone areas to get affected by are public related institutions, NGO, judges, Electoral Politics, Public servants, Reporters, publishers, such other people working in influencing nationwide life. Objective:The prime objective of the FCRA act is to regulate the acceptance and usage of foreign contribution and foreign hospitality (e.g. free airplane tickets and hotel lodging during Videsh-yatra) by such associations and persons working in such area. Violation of such rules and regulation of FCRA may lead to Imprisonment of 5 years. For Example in the case of NGOYou can donate to NGOs that registered under FCRA. In case you are a non-resident Indian, not holding Indian Passport and your donation will be treated as of foreign source. In case of giving a donation to an NGO that is not registered under FCRA, Give (Optional but should be obeyed) a letter of intention to donate a specified amount for a specific purpose/program of the NGO to the Central Government of India and the NGO. No prior permission is required to be taken by NGO under FCRA act, by attaching your letter of intention. Once prior permission is received by the NGO can receive the contribution. Who can receive foreign contribution?Organizations working for definite cultural, social, economic, educational or religious programs, can receive foreign contribution. Who cannot obtain Contribution?
The requirement under FCRA Act for an entity willing to receive or give such contribution or hospitality
Note that prior permission is required to be taken in cases where FCRA registration has been denied or application is rejected for registration.
For obtaining the FCRA registration under FCRA act, the applicant or association should be preferably registered under the following Act: 1. The Societies Registration Act 1860; 2. India trust Act 1822; 3. Charitable and Religious trust act 1920; 4. The Companies Act 2013/1956 FCRA Registration ProcedureHere the FCRA Registration Process-
Compliance requirement o be maintained by the organization or entity applying for FCRA registration after obtaining the registration:
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