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It regulates the foreign contribution (money donation) and foreign hospitality. An NGO can receive funds from foreign countries. Charitable Trusts, Societies and Section 8 Companies that receive foreign contribution or donation from foreign sources are required to obtain registration under Section 6(1) of Foreign Contribution Regulation Act, 2010. The next milestone is to avail registration for tax exemption on the income of an NGO. It is required to obtain approval from Income tax department under section 12 A, further to attract donor, NGO prefers to get an 80 G Certificate so that contributors can avail tax benefits on the donation made to the NGO.
Be registered under an existing statute like the Societies Registration Act, 1860 or the Indian Trusts Act, 1882 or section 25 of the Companies Act, 1956 (now section 8 of Companies Act, 2013). For FCRA registration, an NGO must have completed three years of operations. FCRA Registration is granted by the Ministry of Home Affairs, Govt. Of India.