Formation of a Society by an AP Gov. Institution and a Japanese Entity

921 votes

Dear Sir/Madam,

Please noted that before answering the query as posed herein, it would be pertinent to discuss some aspects of such proposed society to provide necessary clarifications.

Firstly, the society in question has to be set up under applicable provisions of Andhra Pradesh Societies Registration Act, 2001. Considering the proposed society is planning to promote Japanese Culture, the same shall be duly mentioned in the Memorandum of the Society which shall be duly registered with the appropriate authorities.

Considering the proposed society shall receive some funds from a Japanese entity in future, such society should be required to register under the Foreign Contribution Regulation Act, 2010 and applicable rules therein before it can receive such funds.

In light of the aforementioned registration requirement, the membership of the Society should also be structured in a way that such registration process is seamless without violation of any applicable laws.

After procuring such aforementioned registrations, the Japanese entity can directly send funds as contribution to the proposed society whilst complying with applicable laws in that regard.

Please note that I can assist you in setting up of the society (including preparation of its charter documents) and procuring necessary registrations as shall be required for its functioning going ahead.

Regards,
Sambit

Advocate Sambit Kumar Das LawRato

641 votes

Hi

1) Since you are yet to form a society , you should apply to Ministry of Home affairs( https://fcraonline.nic.in/home/index.aspx) for permission under FCRA, 2010.

2) Prior permission is granted for receipt of a specific amount, from a specific donor, and for carrying out specific activities/projects.

3) An association or an organization can receive foreign contribution without registration only with prior permission from the FCRA department. Such prior permission for foreign contributions can only be received under these circumstances-

A) Should be registered under an existing statute like the Societies Registration Act, 1860, the Indian Trusts Act, 1882, or the Companies Act (1956 or 2013), etc.

B) Should submit a specific commitment letter from the donor indicating the amount of foreign contribution and the purpose for which it is proposed to be given;

C) For Indian recipient organizations and foreign donor organizations having common members, FCRA Prior Permission shall be granted to the Indian recipient organizations subject to some conditions.

Hope this information is useful.

Advocate Rajagopalan LawRato