Can Indian Registered NGOs having FCRA registration establish its office outside India

One Response to Can Indian Registered NGOs having FCRA registration establish its office outside India

1. Subhash Mittal says:

   January 16, 2024 at 7:12 am

   Dear Mr Murali, a very interesting question raised by you. There is no clarity, if a NGO per se, could start a Branch Office outside India. While For Profit entities are allowed to do the same, due to restrictions under Income Tax Act and FCRA whether a NPO would be allowed is not clear. While S.11 (1) (b) makes it mandatory that only that income will be considered for application, which is ‘applied to such purposes in India’. S.11(1)(c) puts conditions of requiring CBDT approval for application of NGO’s income outside India.

   FCRA legislation is silent on spending of FC outside India. However Charter for NGOs who have received FCRA registration or Prior Permission requires these entities to spend FC funds for prohibits these organisations to undertake activities in India only for the purposes for which FC has been received.

   However it may be noted that for commercial purposes, an Indian citizen or a business entity is not prohibited from opening a BO outside India and carry out its business. However considering the uncertainties for a NGO to start a foreign entity / BO, perhaps one option for promoters of such a NGO would be to start a entity based in such country where they wish to raise resources. But all one would say, take such action only after careful consideration of all aspects.

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