FCRA Registration

Introduction

All those non- profit organizations which seek foreign contribution for their defined social, cultural, educational, or religious objectives may obtain FCRA registration or receive a foreign contribution through prior permission route. 

The Government has consolidated all laws and regulations relating to such transactions to govern the foreign contribution or foreign hospitality earned by any person, association, or corporation. Foreign Contribution (Regulation) Act, 2010 was enacted for this reason. This was done to create a transparent process for individuals and organizations through FCRA's e-governance and related matters. This program was enacted by the government to curb the detrimental activities which can be against nation interest

Who Needs FCRA registration

This registration is applicable to a non-profit organization that indulged in activities like society’s welfare, promoting at and science, games, and other social activity. It is applicable to NGOs, Trust, and societies.

Types of FCRA registration

Two types of FCRA registration are there:

Prior permissions

If a newly registered organization is willing to receive any kind of foreign contribution then it ca apply for prior permission. Following minimum requirement are to be met with in order to apply  for it:

• The foreign owner should be pre-specified
• Use of funding should be pre-specified, it should be used for the specific task
• Funding  should be pre-define

For Proper FCRA Registration:

Minimum requirement:

• The Organization must be operating and registered from the last 5 years
• The organization must have spent 10 lakh on its objective in last 3 year
• The organization has to submit its last 3 years financial audited by qualified charted

Benefits of registration

• NGO can accept foreign donations with the help of this registration. This is one of the important compliance for NGO to accept the foreign donation
• NGO can avail lifetime tax exemption through this registration

Consequences of a non-registered entity:

• NGOs cannot accept foreign donations without this registration.

Eligibility Criteria

➲  Applicant must be a non-profit organization, and have registered under;

• Companies act 2013, as a section 8 company
• Societies registration act 1860
• Indian trust Act of 1882

➲  Organization must not have prohibited under section 3 of the foreign contribution act

➲  Organization must have set up with charitable objectives.

Process of registration

Step 1: Visit on FCRA online portal

Step 2: Go to FCRA online form to register in FCRA

Step 3: Apply for FCRA

Step 4: Apply through form 3 (FC 3)

Step 5: log in here if you already have the ID details, or register here

Step 6: You’ll get the login detail after doing the registration, do the login with the generated ID

Step 7: Proceed for new registration and fill-up the form and upload the required documents

Step 8: at last after filing the form save the form and make the payment for it

Step 9: After verification, the registration certificate will be generated.

Registration is valid for 5 years from the date of registration after that organization needs to renew it before 6 months from the date of expiry

Post-registration:

• After the getting registration under FCRA organization needs to file an annual return to the authority every year in prescribed form FC-4
• Organization needs to maintain proper accounts and records all the received contribution and utilization of those received contribution

Documents required

➲  Memorandum of Association (MOA)/Deed’s self-certified copy reflecting the objective of the organization

➲ Certificate of registration (COI)/registration’s self-certified copy

➲  PAN copy of the organization

➲  Signature of chief functionary (in JPG form)

➲  Activity report of the last 3 years (of the existing organization)

➲  The audited balance sheet of the last 3 years (of the existing organization)

➲   Management detail of the organization

➲  Resolution copy of the governing body of the organisation

➲  80G & 12AA certificate copy

➲  Commitment letter/ approval letter of the foreign contributor (for new organization)