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Am I Eligible to get Foreign Funds

Am I Eligible to get Foreign Funds

It is an impending question that comes into the mind of the businessmen that are they eligible to get the foreign funds as meeting the eligibility requirements it quite essential in order to be successful in the goal of getting foreign funds.

There are many organizations in India that want foreign investors to make investments in their companies that will not only give them an investment for business expansion but also there will upgradements in their business environment. India has been attracting foreign funds even amidst the pandemic situation which has disrupted the world economy.

The government of India has been bringing FDI policy changes for making the process easy and it has also started to affect the ease of doing business in India that will be a major motivator for foreign investors to make investments in the Indian companies.

Namely, there are only two routes for FDI in India and that is the Government Route (where approvals are required) and the automatic route (approvals are not required). There are different sets of rules to be followed in the two routes of FDI as in the government route there are government approvals required to go ahead with taking the foreign investments.

What is the Eligibility to get foreign funds for non-profit organizations?

In order to receive foreign funds by non-profit organizations, it is important that the organization must be having an FCRA certificate. For foreign fundraising, it is vital that the nonprofit organizations fill and submit the application to the government to take permission in order to receive the foreign funds lawfully.

There is an important documentation process that has to be followed during and after the process of FCRA. If any non-profit organization receives the foreign funds without taking the permission of the government then it is a punishable offense and also on the misuse of the foreign funds for which the permission has not been taken then also it is a punishable offense.

The important pointers for receiving foreign funds by NPO are: 

  • Maintenance of a separate account for receiving the foreign funds as these funds are not to be mixed to the local currency dealings. The banks guide the organization on the FCRA bank accounts.
  • Updated accounts and information must be maintained by the organization or else penalties and imprisonment may be imposed in regard to FCRA and foreign contributions.

What measures should be taken for getting foreign funds through the government route?

The eligibility of receiving foreign funds through the government route requires the organization to be registered and there must not be any forgery in all the documents of the company. The Ministry of Finance and Foreign Investment Promotion Board (FIPB) are in charge of providing approvals in regard to FDI in the sectors which come under the government route.

FDI India is a one-stop destination for all the foreign investment requirements and queries as they are the masters in this field. They act as the meeting point between foreign investors and Indian companies who are open to foreign investments. With years of experience, they fully know the documentation process and assist the company in undertaking foreign investment through the process.

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