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No, you do not have to comply with the FCRA rules as the act is applicable for the Non Profit organizations (NGO). If in case NGO wants to raise funds for your company then the NGO has to get registration and prior approval under FCRA. The Act permits only NGOs having a definite cultural, economic, educational, religious or social programme to accept ...
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ProfessionalI have incorporated a One Person company on 30th of June 2016. What I intend to go through my company is - Crowdfunding. Crowdfunding has various models. Ours is Donation Based Crowdfunding.You can refer to the pdf attached (SEBI Consultation paper on crowdfunding) to know more in detail. What happens in a typical crowdfunding platform is - People who are planning to do something of social value ask for donations from the public in general. They post their project on a crowdfunding website and people interested to donate to that project donate funds online. The duration of hosting the project online and amount to be raised are pre-decided. Money donated by the donor comes to the company's account who is running the website.
The company then deducts its service fees and transfer the rest of the money to the account of the person who is asking for money. In such a scenario, if donations are coming from overseas, does the company who is providing the website interface need to comply with FCRA? - what is the procedure if you can guide us to understand. It's pertinent to mention here that the funds come only in the form of donation. Donor expects no monetary benefit in return. He might get a Thank you note or memento in return but the price of that memento does not depend on the amount donated. Crowdfunding companies registered in India as Pvt ltd company and accepting funds from abroad as a mediator on other's behalf are - Wesberry.in or Ketto.org you can please refer to their websites to know more in detail.
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Wazzeer Professional Network
ProfessionalNo, you do not have to comply with the FCRA rules as the act is applicable for the Non Profit organizations (NGO). If in case NGO wants to raise funds for your company then the NGO has to get registration and prior approval under FCRA. The Act permits only NGOs having a definite cultural, economic, educational, religious or social programme to accept the foreign contribution, that too after such NGOs either obtain a certificate of registration or prior permission under the Act. In order to be registered under the FCRA, an NGO must be in existence for at least three years and must have undertaken reasonable activity in its field for which the foreign contribution is proposed to be utilized. Further, it must have spent at least INR 1,000,000 over three years preceding the date of its application on its activities. The registration certificate is valid for a period of five years and must be thereafter renewed in the prescribed manner. NGOs not eligible for registration can seek prior approval from FCRA for receiving foreign funding. This permission is granted only for a specific amount of foreign funding from a specified foreign source for a specific purpose. It remains valid till receipt and full utilization of such amount. In both of the above cases, the applicant must file the application in a prescribed format with the Authority and submit all the documents as required under the Act. Further, it must have a separate bank account exclusively for the deposit of foreign contribution. No other fund can be credited to this account.
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over 3 years ago
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I have incorporated a One Person company on 30th of June 2016. What I intend to go through my company is - Crowdfunding. Crowdfunding has various models. Ours is Donation Based Crowdfunding.You can refer to the pdf attached (SEBI Consultation paper on crowdfunding) to know more in detail. What happens in a typical crowdfunding platform is - People who are planning to do something of social value ask for donations from the public in general. They post their project on a crowdfunding website and people interested to donate to that project donate funds online. The duration of hosting the project online and amount to be raised are pre-decided. Money donated by the donor comes to the company's account who is running the website.
The company then deducts its service fees and transfer the rest of the money to the account of the person who is asking for money. In such a scenario, if donations are coming from overseas, does the company who is providing the website interface need to comply with FCRA? - what is the procedure if you can guide us to understand. It's pertinent to mention here that the funds come only in the form of donation. Donor expects no monetary benefit in return. He might get a Thank you note or memento in return but the price of that memento does not depend on the amount donated. Crowdfunding companies registered in India as Pvt ltd company and accepting funds from abroad as a mediator on other's behalf are - Wesberry.in or Ketto.org you can please refer to their websites to know more in detail.
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Wazzeer Professional Network
ProfessionalNo, you do not have to comply with the FCRA rules as the act is applicable for the Non Profit organizations (NGO). If in case NGO wants to raise funds for your company then the NGO has to get registration and prior approval under FCRA. The Act permits only NGOs having a definite cultural, economic, educational, religious or social programme to accept the foreign contribution, that too after such NGOs either obtain a certificate of registration or prior permission under the Act. In order to be registered under the FCRA, an NGO must be in existence for at least three years and must have undertaken reasonable activity in its field for which the foreign contribution is proposed to be utilized. Further, it must have spent at least INR 1,000,000 over three years preceding the date of its application on its activities. The registration certificate is valid for a period of five years and must be thereafter renewed in the prescribed manner. NGOs not eligible for registration can seek prior approval from FCRA for receiving foreign funding. This permission is granted only for a specific amount of foreign funding from a specified foreign source for a specific purpose. It remains valid till receipt and full utilization of such amount. In both of the above cases, the applicant must file the application in a prescribed format with the Authority and submit all the documents as required under the Act. Further, it must have a separate bank account exclusively for the deposit of foreign contribution. No other fund can be credited to this account.
Your Wazzeer has the expertise supported by technology that can deliver any legal or accounting work seamlessly. Let us take this discussion forward 'Get a Wazzeer'
over 3 years ago
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