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FCRA Registration- Process, Types, Eligibility

 

What is FCRA Registration?

 

FCRA Department comes under the Ministry of Home Affairs. FCRA Registration is optional for NGO / Trust / Section 8 Company

In order to regulate the foreign contribution or foreign hospitality received by any individual, association or company the Government has consolidated all the laws and regulations relating to such transactions. For this purpose, Foreign Contribution (Regulation) Act, 2010 was enacted. This was done to create a transparent mechanism for individuals and organizations through E-governance of FCRA related activities. This transparent system was created to discourage any detrimental activities which can be against national interest.

 

Who are Eligible for FCRA Registration?

 

The Below-mentioned entities are eligible for FCRA Registration:-

  • Section-8 companies registered under the Companies Act.

  • Trust registered under the Indian Trust Act

  • Societies registered under the Indian Society Registration Act

  • The entity must not be prohibited in any form by the provision of the FCRA.

  • Foreign contribution accepted by the trust shall not risk the life or safety of any individual or shall not resulting any offense.

  • The NPO for registration must have charitable objectives to serve the society by promoting health, education, economic development, promotion of art, culture, religion, sports, etc.

What are the Benefits of FCRA Registration?

  • Helps those organizations which work for the benefit and better of the public and are involved in the social work.

  • If the organizations are registered under FCRA, it helps the organization lawfully in receiving the foreign contribution or government aids.

  • An entity registered under FCRA can receive donations from foreign bodies.

What is The Document Requirement for FCRA Registration?

 

For Registration

·Self-certified copy of registration certificate/Trust deed etc., of the applicant association.

·Copy of PAN of the NGO.

·Self-certified copy of relevant pages of MOA/AOA/Deed reflecting the main objects of the association.

·Jpg file of signature of the chief functionary.

·Activity Report of last three years.

·Copies of audited Assets and Liabilities, Receipt and Payment, Income and Expenditure statement etc. of last 3 years reflecting the expenditures.

·Detail about the current and past management of the trust.

·Annual report of the NGO and details of work done in past 3 years.

·A true copy of the resolution passed by the Governing Body of the NGO.

·A Copy of certificate issued by the Income Tax Authority under 80G & 12A of the Income Tax Act.

 

For Prior Permission

·Self-certified copy of registration certificate/Trust deed etc., of the applicant association.

·Copy of PAN of the NGO.

·Self-certified copy of relevant pages of MOA/AOA/Deed reflecting the main objects of the association.

·Jpg file of signature of the chief functionary.

·Duly signed approval/commitment letter from the foreign contributor.

·Copies of audited Assets and Liabilities, Receipt and Payment, Income and Expenditure statement etc. of last 3 years reflecting the expenditures.

·Detail about the current and past management of the trust.

·A true copy of the resolution passed by the Governing Body of the NGO.

·A Copy of certificate issued by the Income Tax Authority under 80G & 12A of the Income Tax Act.

 

What is the Procedure for FCRA Registration?

 

To apply for FCRA Registration, below- mentioned steps are required:-

  • Accessing The FCRA Online Portal

The first step is to access the online portal of FCRA.

  • Click On the Forms

Based on the type of registration, an applicant needs to click on:-

• Application for FCRA Registration-Form FC – 3A or

• Application for FCRA Prior Permission-Form FC – 3B.

  • Creating The Username and Password

The next step is to apply online. Once the applicant chooses ‘Apply Online’ option, the next step is to create a username and password by clicking on the ‘Sign-Up’ option.

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  • Login Respective Account

Once an applicant creates a user ID and password, the message regarding the same is displayed on the screen, and the applicant may log in to the account. Once the account is logged in by the applicant, the screen will reflect “I am applying for” from which FCRA Registration has to be chosen. An applicant shall select ‘Apply Online’ following which “Proceed Registration” has to be selected.

  • Start The New Registration Procedure

The next step that will reflect, in the title bar is FC-3 that is to be clicked on to start the new registration procedure.

  • Providing The Relevant Details

The next step is to fill in the relevant details in the form along with the requisite documents. Along with that below-mentioned criteria is required to follow-

• An applicant needs to select The Executive Committee option from the menu bar. The particulars will be filled in the Executive Committee form.

• The applicant can add/delete/edit the details by entering “Add details of Key Functionary”.

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  • Providing The Bank Details

Once the above-mentioned criteria along with the details are filled, the applicant shall provide the bank details that includes:-

• Bank name,

• Account number,

• IFSC Code and

• Address of the bank.

  • Uploading Documents in PDF Format

Once the applicant fills in the bank details, all the required documents are to be uploaded in PDF format. Also, the place and date need to be entered after which the final submission is done.

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  • Making The Payment

The next and final step is to make the online payment by clicking on the respective button. Further, no alterations can be made in the said form once the payment is made, and the form is submitted.

Note-Once the FCRA registration is granted by the authority, the registration remains valid for 3 years.

 

What are the Penalties for Violation of FCRA?

 

Violation of FCRA can attract various penalties which could be as under:-

  • Seizure and confiscation of foreign contribution receipts.

  • Penalty up to 5 times the value of the foreign contribution spent.

  • Inspection and seizure of accounts and records

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Non-Eligible Entities for Applying FCRA Registration

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Following entities are not allowed to be granted FCRA registration:-

  • The applicant is fictitious or Benami.

  • Applicant against whom prosecution is conducted for indulging in any unfair activity

  • An applicant who has been convicted or prosecuted for any communal tension made in any area of specified district or any part of the country

  • Entity has engaged in any violent activities

  • Has utilized foreign contribution for its personal use

  • Any entity de-bared for accepting any foreign receipt or foreign grant under any provision of law.

  • Any such acceptance of foreign grant that affects prejudicially:=

a. The sovereignty of India

b. Public Interest

c. Relationship with any state.

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Renewal of FCRA Registration

 

As specified above FCRA registration has a validity of 5 years, at the end of which it lapses. Thus, the non-profit organizations are required to file a renewal application for the same. Following are the timelines for filing renewal application:

  • Generally, the registered entity is required to submit a renewal application at least 6 months before the registration lapses.

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

 

Cancellation of FCRA Registration:-

There are numerous reasons where a NGO’s foreign funding registration can be cancelled on conditions like –

  1. The fund given by the foreign donor is not utilized properly and used for own personal interest.

  2. The NGO fails to file annual compliance for three consecutive years

  3. Any member of the organization files a complaint that the NGO is not working properly and if it is proved.

 

DISCLAIMER- These materials are public information and have been prepared solely for educational purposes. These materials reflect only the personal views of the author and are not individual legal advice.

It is understood that each case is fact specific and that the appropriate solution in any case will vary. Finally, the owner will not be accountable for any loses injuries or damages from the exposures or usage of this information

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