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All About FCRA Registration

Foreign contribution regulation Act 1976 is a law of government of India which manages receipt of foreign contributions. This law is implemented through the ministry of Home affairs, Government of India.

To regulate the foreign contribution received by any individual or company the Government has consolidated all the laws & regulations relating to such transactions. For this purpose, Foreign Contribution (Regulation) Act, 2010 was introduced. This was done to build a transparent mechanism for individuals & organizations by e-governance of FCRA related activities.

What are the Objectives of FCRA?

  1. To regulate the acceptance & utilization of foreign contribution by certain individual associations or companies.
  2. Prohibit the acceptance & utilization of foreign hospitality for any activities unfavorable to national interest and related with this.

Types of FCRA Registration

FCRA Registration can be divided in two types, one is proper FCRA registration and other is prior permissions.

Proper FCRA Registration-

  1. To be eligible to apply for proper FCRA registration following minimum requirements must be met with:
  2. The applicant must be registered and operating for a minimum period of 5 years.
  3. The organization must have spent minimum 10 Lacs rupees in the last 3 years for furtherance of its main objects. This amount will be excluded from any kind of administrative expenditure.
  4. The applicant is also required to submit last 3 years financial statements. These financial statements must be audited by qualified CA.

Prior Permission-If a newly registered organization is willing to receive any kind of foreign contribution then it can apply for prior permission. Following minimum requirements are to be met with to apply for prior permission:

  1. The foreign owner is specified at the time of making application.
  2. Amount of foreign contribution is also defined.

What are the Eligibility Criteria for FCRA Registration?

  1. As registered Trusts Under Indian Trusts Act, 1882
  2. As registered Society under Societies Registration Act, 1860
  3. As company Under Companies Act, 2013

Apart from this following pre-conditions are also needed to be satisfied by the applicant to receive foreign contribution:

  1. The applicant institutions must have been set up with charitable objective of serving the society in any manner like promotion of health, education, art, sports etc.
  2. The organization must not have been prohibited according to the Section 3 – Foreign Contribution (Regulation) Act, 2010.

What is the Process of FCRA Registration?

The FCRA registration is done through filing an online application on Form FC-3. Scanned copies of all the mandatory documents and information are needed to be uploaded at the time of filling this form.

However, there is a pre-requisite to this registration. For register under FCRA, the NGO need to have a DARPAN ID. For DARPAN ID, it is required to register on DARPAN portal governed by NITI Ayog.

What is The Document Requirement for FCRA Registration?

For Registration

  1. Copy of PAN of the NGO.
  2. Self-certified copy of relevant pages of MOA/AOA/Deed reflecting the main objects of the association.
  3. Jpg file of signature of the chief functionary.
  4. Activity Report of last three years.
  5. Copies of audited Assets and Liabilities, Receipt and Payment, Income and Expenditure statement etc. of last 3 years reflecting the expenditures.
  6. Detail about the current and past management of the trust.
  7. Annual report of the NGO and details of work done in past 3 years.
  8. A true copy of the resolution passed by the Governing Body of the NGO.
  9. A Copy of certificate issued by the Income Tax Authority under 80G & 12A of the Income Tax Act.

For Prior Permission

  1. Self-certified copy of registration certificate.
  2. Copy of PAN of the NGO.
  3. Self-certified copy of relevant pages of MOA/AOA/Deed reflecting the main objects of the association.
  4. Jpg file of signature of the chief functionary.
  5. Duly signed approval/commitment letter from the foreign contributor.
  6. Copies of audited Assets and Liabilities, Receipt and Payment, Income and Expenditure statement etc. of last 3 years reflecting the expenditures.
  7. Detail about the current and past management of the trust.
  8. A true copy of the resolution passed by the Governing Body of the NGO.
  9. A Copy of certificate issued by the Income Tax Authority under 80G & 12A of the Income Tax Act.

How we can process for Renewal of FCRA Registration

As discussed above FCRA registration has a validity of 5 years, at the end of which it lapses. So, the non- profit organizations are needed to file a renewal application for the same.

Following are the timelines for filing FCRA renewal application:

Usually, the registered entity is needed to submit a renewal application at least 6 months before the registration lapses.

However, the renewal application is required to be filed at least 12 months before the FCRA registration lapses if the registered entity is working on ongoing multi-year projects.