About FCRA Registration for NGO

FCRA stands for the Foreign Contribution Regulation Act, which is a law enacted by the Government of India to regulate foreign donations to non-profit organizations in India.

FCRA registration is mandatory for non-profit organizations that receive foreign contributions or donations.

FCRA registration is important for NGOs because it enables them to receive foreign contributions legally and utilize them for their social or charitable activities.

Without FCRA registration, non-profit organizations are prohibited from receiving foreign donations, and any such donations received can be seized by the government, leading to a significant financial and reputational loss for the organization.

FCRA registration also ensures transparency and accountability in the use of foreign donations, as the government monitors the receipt and utilization of such funds by the registered organizations.

The FCRA registration process involves stringent scrutiny and verification of the organization’s legal and financial status, as well as its social or charitable objectives, to ensure that the foreign contributions are utilized only for the stated purposes and not for any illegal or nefarious activities.

In summary, FCRA registration is crucial for non-profit organizations in India that rely on foreign donations to fund their social or charitable activities.

It enables them to receive foreign contributions legally and ensures transparency and accountability in the use of such funds.

After the amendment in 2005 in the Companies Act the requirement of minimum paid-up capital has been removed. Private companies can now have a minimum paid-up capital of any amount.