Dear Sir
Greetings!I have a querry regarding FCRA, would be grateful if you could clarify.
Q1: If any Non profit company (Registered under Section 8 of Companies Act 2013) in India is promoted by any international non profit organization / INGO who also hold the 100% equity shares of the said new entity / Not profit company. Can this new entity be granted the FCRA / is it eligible to get FCRA registration, given all other criteria is fulfilled?
Q2: Is there any clause that stops any non profit from getting the FCRA if the name of the organization contains the “International” word as part of its name? Also, if the name of the organization is similar to the International entity that has promoted the new Section 8 company?
Looking forward for your guidance to enhance my knowledge about FCRA.
Thanks
Archana
1. Till about 2018, FCRA Dept did not discriminate against entities with 100% shareholding from foreign NGOs, however from 2019 onwards, there seem to have been a change of policy, and now most such applications are being rejected.
2. There are no such explicit instructions, to my knowledge, by the Dept that any organisation with International name incorporated will not be entertained by the FCRA Dept. However while undertaking Inspection, IB officer would try to ascertain the independence of the applicant, and if s/he considers that organisation is under undue influence of the foreign source, it may give adverse report.