Section 25 Company

Posted on October 14, 2011 by SRRF

HI All,

Can a section 25 company after its formation apply for FCRA registration to MHA?

If yes, does it need to satisfy of RS. 10,00,000 expenditure ( turn over) in its balance sheet?

—

Regards.

Ranjit Paik,
Freeset Bags & Apparel Pvt. Ltd

172 Ramesh Dutta Street, Kolkata-6
033- 40705187 (0), 90621 66577 (M)
www.freesetglobal.com, SKYPE:ranjit.paik

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7 Responses to Section 25 Company

  1. Furgan Khan says:
    November 3, 2011 at 8:37 am

    Procedure to inform MoHA (FCRA) for changes in address of the organisation. Please suggest prpcedure?

    Thanks and regards

    F Khan

  2. Anil Baranwal says:
    October 14, 2011 at 11:22 am

    Dear Mr. Paik,

    A Section 25 company can apply for FCRA registration after its formation but before completing three years, the application will be rejected as per the internal guidelines of FCRA. However, you can apply for Prior-permission, if you have a definite donor.

    With warm regards,

    Anil Baranwal
    NGO Finance and Development Consultant
    NOIDA

  3. B V Soma Sastry says:
    October 14, 2011 at 11:20 am

    Dear Dibya,

    FCRA does not in any way say that an organization has to apply for registration only after 3 years of its existence. This has been derived from the fact that FCRA application for registration seeks 3 years audit report to be submitted as one of its documents. There are exceptions to this and organizations have received registration before the 3 year period.

    Thanks and regards,
    B V Soma Sastry

  4. Dibya says:
    October 14, 2011 at 11:18 am

    Dear Soma,

    I am fully agree with you but one organisation can not be registered under FCRA unless it exists in the field for at least 3 years.the only way it can for Fc money is Prior permission.

    Dibya
    Accountant
    Oxfam India

  5. B V Soma Sastry says:
    October 14, 2011 at 11:15 am

    Dear Ranjit,

    Greetings from Hyderabad!

    Yes. Section 25 company also falls under the definition of “Person” in FCRA 2010. Section 25 company also has to approach MoHA for FCRA registration. On the second question, the FCRA does not in any way talk of any expenditure requirement in so far as the eligibility for registration is concerned.

    I have seen cases where FCRA was not granted on the grounds that the program expenditure for the previous 3 years did not amount to Rs. 6,00,000/-. This figure seems to be some internal matter of FCRA department which is nowhere mentioned in the Act or the rules.

    Thanks and regards,
    B V Soma Sastry

  6. Surya Prakash Loonker says:
    October 14, 2011 at 11:13 am

    Section 25 company is also a NGO and all fcra laws that applies to trust and society, applies to section 25 company. Fcra u will only b able to apply after 3 yrs of existence. Before that u can apply for prior permission. It will need to fulfill Rs. 10L expense condition as well.

    Surya Prakash Loonker
    http://developyourindia.blogspot.com, http://lawfulindia.blogspot.com, http://anticorruptioncrusade.blogspot.com, http://info.linuxbazar.com

  7. Tanvi Dogra says:
    October 14, 2011 at 11:12 am

    Dear SRRF Dialogue members,

    Greetings!!!

    Mr. Subhash Mittal is out of office till end of this week, and have limited access to his e-mails. Hence, would like to share a query raised by one of our members Ranjit Paik mentioned below.

    Please advise accordingly.

    With warm Regards,

    Tanvi Dogra,

    SRRF Dialogue Coordinator
    ____________________________________

    Socio Research & Reform Foundation
    (A Non Government Organisation)
    512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
    Tele/Fax: +91-11-25821088, 25817157, 25722044
    e-mail: socio-research@sma.net.in

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