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 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