FCRA Registration-Everything you need to know!

FCRA Registration Overview

FCRA Registration is required for all charitable trusts, societies, and Section 8 companies that receive foreign contributions or donations. The Foreign Contribution Regulation Act of 2010 governs FCRA registration. The Foreign Contribution Regulation Act (FCRA) is an act that regulates foreign contributions. This Act of 2010 was passed with the following goals in mind:

1. Individual organizations or corporations must strike a balance between accepting and utilizing international contributions or foreign hospitality.
2. Acceptance and use of foreign hospitality or contributions for any acts that are harmful to the national interest, as well as anything related to or incidental to those activities, are prohibited.

The government issues the FCRA registration certificate, which must be obtained before any registered trust, social institution, or non-governmental organization (NGO) acquires or receives any foreign contribution donations.

What Are the Advantages of FCRA Registration?

1. Aids organizations that are interested in social work that work for the welfare and betterment of the public.

2. If an organization is registered under the FCRA, it will be able to receive foreign contributions and government aid legally.

3. Foreign bodies can donate to an entity that is registered under the FCRA.

Who is Eligible to FCRA Registration?

The following entities are eligible to register under the FCRA:

1. Companies registered under Section 8 of the Companies Act.

2. Under the Indian Trust Act, a trust is established.

3. The Indian Society Registration Act regulates the formation of societies.

4. The entity must not be banned in any way by the FCRA’s provisions.

5. Acceptance of a foreign gift by the trust will not jeopardize the life or safety of any individual, nor will it result in any criminal violation.

6. The NPO must have charity aims in order to be registered, such as promoting health, education, economic development, art, culture, religion, sports, and so on.

What documents are needed FCRA Registration?

The documents listed below are required for FCRA registration:

1. A self-attested copy of the entity’s incorporation certificate, trust deed, or any other certificate

2. Details of the non-profit organization, as well as the PAN.

3. A copy of the institution’s MOA and AOA,

4. The Chief Judicial Officer’s Opinion (It shall be in JPG From)

5. A thorough report on the last three years’ activities.

6. Financial statement, P&L account, Income-Expenditure information, and cash flow statement over the last three years, all audited.

7. Certified authentic copies of the resolution passed by a non-profit organization’s governing body.

8. Section 12 AB of the Income Tax Act was used to get the certificate.

What is the FCRA Registration Process?

The steps outlined below must be completed in order to apply for FCRA registration:-

How to Use the FCRA’s Online Portal

The first step is to go to the FCRA’s internet portal.

To use the forms, simply click on them.

An applicant must select one of the following options, depending on the type of registration:

• FCRA Registration Application (Form FC – 3A or)

• FCRA Prior Permission Application-Form FC – 3B

Username and Password Creation

The next step is to fill out an online application. After selecting the ‘Apply Online’ option, the applicant must then select the ‘Sign-Up’ option to create a username and password.

Login to the appropriate account.

When an applicant generates a user ID and password, a notice about it appears on the screen, and the applicant is able to log in to his or her account. After the applicant logs in, the screen will display “I am applying for,” from which the applicant must select FCRA Registration. After selecting ‘Apply Online,’ the candidate must next click “Proceed Registration.”

Begin a New Registration Process

The next step, FC-3, will appear in the title bar and should be clicked to begin the new registration procedure.

Providing Relevant Information

The next step is to fill out the form with the necessary information and documents. Along with that, the following criteria must be followed:

• From the menu bar, an applicant must pick The Executive Committee. The information will be included into the form for the Executive Committee.

• By typing “Add details of Key Functionary,” the applicant can add, delete, or change the information.

Providing Bank Information

After filling out the above-mentioned criteria and details, the applicant must give bank information, which includes:-

• Name of the bank

• Account number

• IFSC (International Financial Services Code)

• Address of the bank

Documents in PDF Format Can Be Uploaded

All essential documents must be uploaded in PDF format after the applicant fills out the bank information. The location and date must also be supplied before the final submission can be completed.

Obtaining Payment

The final and most important step is to complete the online payment by clicking on the appropriate button. Furthermore, after the payment is paid and the form is submitted, no changes may be made to it.

Note- The registration of the FCRA is valid for three years after it is authorized by the authority.

What are the Consequences of FCRA Violations?

Violations of the FCRA can result in a variety of penalties, including the following:

1. Foreign contribution receipts are being seized and confiscated.

2. Penalty of up to five times the amount of the wasted foreign contribution.

3. Accounts and records are subject to inspection and confiscation.

What are the different types of registrations available under the FCRA 2010?

According to the FCRA 2010, there are two routes for an application to gain registration:-

Registration as usual

The candidate must be registered under the following categories:

1. The Societies Registration Act of 1860, often known as the

2. The Indian Trusts Act of 1882, sometimes known as the Indian Trusts Act, was enacted in 1882

3. Incorporated by Section 8 of the Companies Act, 2013 or any other statute that may be specified.

An applicant must have made appropriate contributions to society by engaging in activities in their chosen field.

In the last three years, it must have spent at least Rs. 15 lakhs on attaining its goals.

Financial statements over the last three years that have been duly audited by experienced Chartered Accountants.

If a newly registered entity is anticipated to accept foreign donations, the Ministry of Home Affairs can grant clearance via the Prior Permission (PP) approach.

Registration for Prior Permission

The Prior Permission Registration is best suited for newly registered institutions that are expected to receive foreign contributions. Prior Permission is required in order to receive a specified amount from a specific donor for the purpose of carrying out specific initiatives. The following is a list of requirements for registering a non-profit organization:

1. The Societies Registration Act of 1860, or the Societies Registration Act of 1861, or the Societies Registration Act of 1861

2. The Indian Trusts Act of 1882, sometimes known as the Indian Trusts Act,

3. Incorporated as a Section 8 company under the Companies Act of 2013, or any other applicable law.

Submit to the Ministry of Home Affairs a specific commitment letter from the donor, indicating

1. Amount of contribution made, as well as

2. The goal for which it is suggested that it be donated.

If the Indian receiving organization and the international donor organization have members in common, the following requirements must be met:

1. The Indian entity’s Chief Functionary cannot be a member of the contributor entity.

2. A minimum of 51% of the members/office-bearers of the Indian recipient entity’s governing body should not be employees/members of the foreign contributor entity.

3. If the foreign contribution is a single person:

• That person cannot be the Indian organization’s Chief Functionary.

• At least 51 percent of the beneficiary entity’s office bearers/members of the governing body should not be family members or close relatives of the donor.