What is a foreign contribution India?

What is the meaning of foreign contribution?

3 Section 2(c)(i) of repealed FCRA, 1976 inter alia defined foreign contribution as the donation, delivery or transfer made by any foreign source of any article, not given to a person as a gift for personal use, if the market value, in India, of such article exceeds one thousand rupees.

Who can receive foreign contribution?

(1) Every person who has been granted a certificate or given prior permission under section 12 shall receive foreign contribution in a single account only through such one of the branches of a bank as he may specify in his application for grant of certificate: Provided that such person may open one or more accounts in …

What is a FCRA account in India?

Foreign contribution regulation Act 1976 or FCRA is a law of government of India which regulates receipt of foreign contributions or aid from outside India to India territories. This is essential to ensure that such aid does not effect political or any other situation in India.

Can Indian trust accept foreign donations?

However, it is imperative to note that the amount of donations received by a charitable trust or institution can only be from an Indian citizen or an entity within India and in the ordinary course of activities, monetary contributions cannot be received from a source outside India.

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Can NRI donate to Indian NGO?

Any violation by the NGO or by the bank may invite penal provisions of The FCRA, 2010.” It added that “donations given in Indian rupees (INR) by any foreigner/foreign source including foreigners of Indian origin like OCI or PIO cardholders” should also be treated as foreign contribution.

Why is FCRA needed?

The FCRA was enacted with the primary purpose of regulating the inflow of foreign contributions and ensuring that the received foreign contributions are not utilized for illegal purposes. All charitable organizations in India receiving foreign contributions come under the purview of this Act.

How can I get foreign money in India?

There are three types of investors of foreign funding for businesses in India:

  1. Individual. Financial institutions. Pension and Provident Fund. Foreign Venture Capital Investors.
  2. Company. Sovereign Wealth Funds. Foreign Trust. …
  3. Foreign Institutional Investors. Partnership and Proprietorship Firm. Private Equity Funds.

How can I apply for FCRA in India?

Following documents are necessary for registration under FCRA.

  1. Copy of registration certification of society or trust deed as the case may be.
  2. Copies of the audited statements of accounts for the last 3 years.
  3. Copies of the annual report of last three years.
  4. Bank Information.
  5. Bank Name.
  6. Account Number.
  7. Bank Address.

How long does it take to get FCRA?

The Ministry of Home Affairs (MHA) informed the Delhi High Court on Thursday that it would release authorisation certificates to operationalise the FCRA (Foreign Contribution [Regulation] Act) bank accounts of non-government organisations (NGOs) within seven days of receiving a request.

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Who can receive foreign contribution as per FCRA?

A ‘person’, as defined in Section 2(1)(m) with the exclusion of those mentioned in Section 3 of FCRA, 2010, having a definite cultural, economic, educational, religious or social programme can receive foreign contribution after it obtains the prior permission of the Central Government, or gets itself registered with …

What is FCRA requirements in India?

The Foreign Contribution Regulation Act (FCRA) is India’s law regulating the flow of foreign funding into the country. Indian nonprofits must have a valid FCRA Registration or receive prior approval from the Ministry of Home Affairs to be able to legally receive charitable funds from donors outside of India.

Is FCRA compulsory?

The Parliament amended the FCRA, 2010 in September, 2020. One of the major amendments mandates compulsory opening of an FCRA account in the State Bank of India (SBI), Main Branch located at Sansad Marg, New Delhi by each NGO/association registered or given prior permission under FCRA 2010.