Trust: Individuals, Companies, Entities, Societies

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OVERVIEW

The primary purpose of FCRA Registration is to regulate the acceptance and use of foreign donations or foreign hospitality by some individuals or associations or corporations, like all the charitable trust, societies and Section 8 Company , and prohibits the acceptance of and use foreign donations for any activities detrimental to the national interest and for related or incidental matters.

BENEFITS OF FCRA REGISTRATION

The certificate of FCRA Registration is issued by the government authority and it is required for any registered trust, social institutions, and NGOs prior to obtaining or receiving foreign grants.

Benefit From the Government

An FCRA registration is an official government registration approved by a regulator that helps applicants access the government benefits.

Procedure Becomes Legal

FCRA registration helps organizations legally receive foreign donations and government assistance.

Foreign Donations

Organizations registered with the FCRA may receive donations from foreign organizations and ongoing support and investment from other organizations.

Can Reach Out to International Bodies

The main advantage of registering with FCRA is that organizations registered with FCRA can reach for donations to international organizations.

TYPES OF FCRA REGISTERATION


1. Proper FCRA Registration/Normal Registration

2. Prior Permission Registration

ELIGIBILITY CRITERIA

FOR NORMAL REGISTERATION

• To apply for FCRA, Societies or Trusts or NGOs must be registered.

• Must have charitable objectives to serve the society by promoting health, education, promotion of art, culture, religion, sports, etc.

• To apply for FCRA, an NGO must complete three years of operation.

• Must have spent a minimum of Rs. 10, 00,000 in the last 3 years in its charitable operations.

• Must submit the copies of the financial statements of the last 3 years that are duly audited.

• For newly registered entity that is likely to receive foreign contribution then in this case approval can be made to the Ministry of Home Affairs via the Prior Permission (PP) method.

FOR PRIOR PERMISSION REGISTERATION

The Prior Permission Registration is particularly suitable for those institutions that are newly registered and are likely to receive foreign contributions. This permission is granted for receiving the specific amount from a specific donor for carrying out specific projects.

• To apply for FCRA, Societies or Trusts or NGOs must be registered.

• Submit the donor’s specific commitment to the Ministry of Home Affairs which indicates:-

1) Amount of Donation Given

2). The purpose for which it is proposed to be given

• And if Indian recipient organization and foreign donor organization have common members then the following conditions need to be met:-

1). The Chief Functionary of the Indian organization i.e. Recipient cannot be part of donor organization.

2). At least 51% of the members of the governing body of the Indian recipient organization should not be employees/members of the foreign donor organization.

• And if the Foreign Donor is individual then:-

1). He/She cannot be the Chief Functionary of the Indian organization.

2). At least 51% office bearers/members of the governing body of the recipient organization should not be the family members and close relatives of the donor.

ENTITIES THAT ARE NOT ELIGIBLE FOR FCRA REGISTRATION

• If the applicant is Fictitious or Benami.

• If prosecution is conducted against applicant for indulging in any unfair activity.

• Entity Engaged in Violent Activities.

• Entity utilised Foreign Contribution for wrong reasons/personal use.

• Entities that are debarred for accepting any foreign contribution under provision of law.

• And if the acceptance of foreign contribution is likely to affect prejudicially

1. The sovereignty and integrity of India

2. Friendly relation with any foreign State

3. The public interest

4. Harmony between religious, racial, social, linguistic, regional groups, castes or communities.

DOCUMENT REQUIRED FOR FCRA REGISTRATION

    Self-attested copy of incorporation certificate/trust deed/any other certificate hold by such entity

    Copy of PAN Card

    Jpg file of signature of the chief functionary

    Activity Report indicating details of activities during the last three years

    Copies of relevant audited statement of accounts for the past three years

    Certified true copies of the resolution passed by a governing body of Non-Profit Organisation.

    Certified Copy issued by the Income Tax Authority under 80G & 12A of the Income Tax Act.

Trust Registration

14,999/-

  • Certificate of Incorporation (CIN)
  • Permanent Account Number (PAN)
  • Memorandum of Association (eMOA)
  • Articles of Association (eAOA)
  • Director’s Identification Number (DIN No)
  • Incorporation Certificate
  • Digital Signature (DSC)
  • Goods and Service Tax (GST)
  • Registration license
  • Free Trademark Search
  • Free Advocate and CA consultation for 1 month
  • (*Govt Taxes & Fees as applicable )

FAQ

The process of registering a Trust in India typically involves drafting a trust deed, getting it notarized and submitting it to the relevant registering authority, along with other required documents such as PAN card of the trust, and bank details.

The time it takes to register a Trust in India can vary depending on the completeness and accuracy of the application and documentation. It can take anywhere from a days to few weeks.

No, Trust registration in India is not a renewable process, once registered it continues to exist until dissolved.

A Trust can be dissolved or wound up in India, through a proper process as per the Indian Trusts Act, 1882.

Trusts in India are required to comply with various laws and regulations such as FCRA, Income Tax and TDS compliance, maintain proper books of accounts, and file annual reports and returns with the relevant authorities.

Yes, Trusts in India can also register for FCRA to receive foreign contributions. It's a separate registration process and comes with its own set of compliance and reporting requirements.