All about FCRA registration In India

The Government of India enacted the Foreign Contribution (Regulation) Act (FCRA) to regulate the acceptance and utilization of foreign contributions or foreign hospitality by individuals, associations, and companies.. If you’re running a non-governmental organization (NGO), charitable trust, or nonprofit company and you intend to receive foreign funding, you need to register under FCRA. Without FCRA registration, it is illegal for any organization in India to accept foreign donations.

This article provides a detailed guide on how to register for FCRA in India, including the process and documents required for a successful FCRA application.

What is FCRA Registration?

FCRA registration is a mandatory process for NGOs, trusts, and other nonprofit organizations to accept foreign contributions. This regulation ensures that foreign funds are used transparently for the purposes they are intended. FCRA also provides guidelines to prevent the misuse of foreign contributions for activities that may be harmful to national interests.

FCRA registration is governed by the Ministry of Home Affairs (MHA) in India, which grants permission to eligible organizations to receive foreign funds.

Why is FCRA Registration Necessary?

Foreign contributions play a significant role in supporting social welfare activities, especially in areas like education, healthcare, disaster relief, and poverty alleviation. By ensuring FCRA registration, an NGO can legally accept foreign donations and grants from international donors, institutions, and foreign governments.

Failure to register under FCRA could result in severe penalties, including restrictions on the NGO’s functioning and fines.

Eligibility Criteria for FCRA Registration

Before beginning the FCRA registration process, it’s important to know if your organization qualifies. Here are the eligibility requirements:

1. Established for Three Years: The NGO or trust must have been operational for at least three years and should have spent a minimum amount on charitable activities.
2. Legal Status: Only registered NGOs, charitable trusts, or nonprofit companies under Section 8 of the Companies Act, 2013, are eligible.
3. Track Record: The organization must have a proven track record of carrying out social, educational, or charitable activities.

If your NGO meets these eligibility criteria, you can proceed with the FCRA registration process.

Types of FCRA Registration

There are two types of FCRA registration:

1. FCRA Prior Permission: Newly established NGOs or those that have not completed three years of operation are granted this type of permission. It allows them to receive a specific amount from a particular foreign donor for a designated purpose.
2. FCRA Regular Registration: NGOs that have been operational for more than three years with a proven track record are eligible for this registration. It enables them to receive foreign contributions on a regular basis.

Step-by-Step Process for FCRA Registration

1. Prepare the Documents

Before starting the application process, ensure that you have all the necessary documents in place. A detailed list of required documents is provided later in this article.

2. Create an Account on the FCRA Portal

To start the process, you need to create an account on the Ministry of Home Affairs’ FCRA online portal. Visit the official website and click on “Sign Up.” After completing the signup process, log in to your account to begin the FCRA registration application.

3. Fill in the FCRA Form FC-3

Once logged in, select the appropriate form:

• Form FC-3A: For FCRA regular registration.
• Form FC-3B: For FCRA prior permission.

This form requires detailed information about the organization, including its legal status, activities, and financial details.

4. Upload the Required Documents

Upload the required documents (discussed below) along with your application form. Ensure all documents are properly scanned and attached in the prescribed format.

5. Pay the FCRA Registration Fee

The FCRA registration fee is as follows:

• ₹10,000 for FCRA regular registration.
• ₹5,000 for FCRA prior permission.

You can make this payment online through the FCRA portal using a credit/debit card or net banking.

6. Submit the Application

After completing the form and attaching the required documents, submit your application online. You will receive an acknowledgment from the Ministry of Home Affairs (MHA), and your application will be reviewed.

The MHA may take several months to review and approve the FCRA registration. During this period, you may be asked for additional documents or clarification. Upon approval, you will receive your FCRA registration certificate, which is valid for five years and can be renewed.

Documents Required for FCRA Registration

To ensure a smooth registration process, you must have the following documents ready:

1. NGO Registration Certificate

• Proof of NGO registration as a charitable trust, society, or Section 8 company. This certificate shows that your organization is a legally established entity in India.

2. Memorandum of Association (MOA) and Articles of Association (AOA)

• These documents outline the objectives, rules, and regulations of your organization. For trusts and societies, the trust deed or society bylaws are required.

3. Audit Reports

• A detailed audit report of the organization’s financial statements for the last three financial years, signed by a certified chartered accountant.

4. Activity Reports

• Proof of charitable activities conducted by the organization over the last three years. This can include photographs, reports, project details, and other supporting documents demonstrating the NGO’s work.

5. Bank Account Details

• The NGO must open a designated FCRA bank account at a branch of a bank that complies with FCRA regulations. The account should be used solely for receiving foreign contributions.

6. Board Members’ Details

• A list of all board members, along with their Aadhaar numbers, PAN cards, and address proof. The MHA requires transparency regarding the individuals managing the NGO.

7. Chief Functionary’s Affidavit

• An affidavit from the chief functionary (president or secretary) declaring that the organization will not accept foreign contributions for activities harmful to national interests.

8. Fee Payment Proof

• Proof of payment of the FCRA registration fee, made during the online application.

Compliance After FCRA

Once your organization obtains FCRA, you must adhere to specific ongoing compliance requirements.

1. Annual Return Filing: very FCRA-registered organization must file an annual return with the Ministry of Home Affairs, detailing how they received and utilized foreign contributions. They do this by submitting Form FC-4.
2. Maintenance of Accounts: The NGO must maintain proper financial records and accounts for all foreign contributions.
3. Bank Account: The organization must use the designated FCRA bank account exclusively for foreign contributions and not mix domestic donations.

Conclusion

FCRA registration is essential for NGOs and nonprofit organizations in India that seek to receive foreign funding. By following the step-by-step process and ensuring all required documents are in order, your organization can successfully register under FCRA and legally accept foreign contributions. However, it is important to maintain compliance with the law after registration, including filing annual returns and maintaining financial transparency.

f your NGO operates in education, healthcare, poverty alleviation, or other social causes, foreign donations can significantly support your activities—once you have secured FCRA registration.

Also read https://motoreview.net/page/278/