Delhi NCR– Businesses and non-profit organizations in India dealing with foreign transactions must adhere to the regulations of FCRA (Foreign Contribution Regulation Act) and FEMA (Foreign Exchange Management Act). While both laws govern foreign inflows, they serve different purposes and apply to different entities.
At CorpZo, we provide expert legal guidance to help businesses and NGOs navigate the complexities of FCRA vs. FEMA, ensuring full compliance with Indian financial regulations.
Understanding FCRA & FEMA
FCRA (Foreign Contribution Regulation Act, 2010): Regulates the receipt and utilization of foreign contributions by NGOs, trusts, societies, and other non-profit entities to prevent misuse.
FEMA (Foreign Exchange Management Act, 1999): Governs foreign exchange transactions by businesses, individuals, and financial institutions to maintain external trade balance and foreign reserves.
Key Differences Between FCRA & FEMA
✔ Applicability: FCRA applies to NGOs & charitable institutions, whereas FEMA regulates all foreign exchange transactions in India.
✔ Regulating Authority: FCRA is governed by the Ministry of Home Affairs (MHA), while FEMA is regulated by the Reserve Bank of India (RBI).
✔ Approval Process: FCRA requires NGOs to obtain prior permission or registration to receive foreign funds. FEMA allows businesses to conduct foreign transactions without prior approval in most cases, subject to sectoral caps.
✔ Penalties & Compliance: Non-compliance with FCRA can lead to cancellation of registration, while FEMA violations may result in financial penalties.
How CorpZo Helps with FCRA & FEMA Compliance?
✅ FCRA Registration & Renewal Services
✅ FEMA Compliance for Foreign Transactions
✅ Advisory on Foreign Fund Regulations
✅ End-to-End Documentation & Approval Support
Brand Name:- CorpZo
Address:- G 10, Sector 63, Noida, India, 201301,
📞 Call Now: +91 9999 139 391,
📩 Email:
[email protected],
🌐 Visit: www.corpzo.com
🚀 Stay Legally Compliant & Manage Foreign Transactions with Ease – Choose CorpZo!