FCRA REGISTRATION

FCRA REGISTRATION

 

Overview of FCRA:

FCRA stands for “foreign Contribution Regulation Act”. This act came into force in 2010 and extends to whole of India. All the charitable trusts, societies and sec 8 Companies that receive foreign contribution are required to obtain registration under FCRA Act,2010. This Act came into force with a view to:

ü  Regulate the acceptance and utilization of foreign contribution and foreign hospitality by certain individuals associations and companies.

ü  Regulate the acceptance and utilization   of foreign contribution and foreign hospitality   for any activities   unfavorable to national interest and for matters related or incidental thereto. FCRA department is managed by Ministry of Home Affairs and its mandatory to obtain FCRA Certificate before receiving foreign contribution.

Eligibility for registration under FCRA Act:

ü  Sec 8 Companies registered under Companies Act,2013

ü  Trust registered under  Indian Trust Act

ü  Societies registered under the Societies Trust Act

ü  Must have made reasonable contributions in its chosen field for the benefit of society for which the foreign contribution is received

ü  Must have spent a sum of Rs. 10,00,000 in last three years towards achieving its objective

(excluding administrative expenditure)

ü  Must submit copies of audited financial statements for last three years duly audited by Chartered Accountants.

ü  Newly registered entities willing to get foreign contribution  then an application under the prior permission method shall be obtained from  Ministry of Home Affairs.

 

Prior Permission Method:

This route is included in rules for those organizations that are newly incorporated organizations and are willing to obtain foreign grants. Such newly incorporated organizations may apply for grant of prior permission under FCRA Act,2010 and it is to be granted for specific amount from specific source for some specific activity. The newly registered organization must be:

 

ü  Registered under Societies Registration Act Or Indian Trust Act or as sec 8 Company under Companies Act,2013.

ü  Submit specific commitment letter form the donor to MHA indicating the amount and purpose for which it is granted.

ü  In case Indian recipient organization and foreign donor having common members, prior permission shall be granted subject to following conditions:

 

v  The Chief Functionary of the  Indian Organization should not be part of the foreign Donor Organization.

v  Atleast 51% of the office bearers of the Indian  recipient organization should not be employees or members of the foreign donor organization.

 

ü  Where the foreign donor is an individual:

 

v  He cannot be the Chief Functionary of the Indian Organization

v  Not less than 51% office bearers/members of the Governing recipient Indian Organization shall not be family members or close relatives of Donor Organization.

 

Who are not eligible for FCRA Registration?

ü  Entity is engaged in any violent activity

ü  If the applicant is fictitious or benami

ü  Has been found guilty or diversion or mis-utilization of funds.

ü  Likely to use the foreign contribution for personal gains or divert it for undesirable purpose

ü  Has  contravened any of the provisions of  this Act.

ü  Has  been prohibited from accepting foreign contribution.

ü  Where the acceptance of foreign contribution likely to affect:

·        Sovereignty and integrity of India or

·        Public interest or

·        Friendly relation with any  foreign state etc.

              Documents required for FCRA Registration:

ü  Self  attested copy of Certificate of Incorporation, trust deed or any other certificate hold by such entity

ü  Particulars of NGO  along with PAN

ü  Self    Attested copy of Memorandum and Articles of Association of such entity

ü  Activity Report of last  three years

ü  Chief  Judiciary signatures in jpg format

ü  Audited copy of Financial statements, Profit and loss account, income & expenditure details and cash flow statement of last three years

ü  Certified copies of the resolution passed by the Governing body authorized by Non  profit organization.

ü  Certificate obtained u/s 12AB of the Income Tax Act.

 

Procedure for FCRA registration:

Step 1: Access to FCRA portal (https://fcraonline.nic.in/)

Step 2: Click on FCRA Forms to register in FCRA

Step 3: Click on FC -3 form under FCRA forms

Step 4: Click on “click to Apply online”

Step 5: Create new login by entering necessary details and click on save button.

Step 6: On clicking message for successful creation of log in id will be displayed in screen, along with User Id.

Step 7: Start new registration process by providing details as asked in portal.

Step 8: Enter Association details from the menu. Enter all mandatory details

Step 9: Click on submit button to save data.

Step 10: Next click on Executive Committee form in “Executive Committee option” from menu bar

Step 11: Enter all details about Executive Committee

Step 12: Select ,add details of key functionary

Step 13:  To add further details of foreign entity, click on the required checkbox.

Step 14: New screen will be displayed for adding foreigner details, enter details and click save button.

Step 15: Add Bank details like Account no, IFSC Details, bank name and address of the bank.

Step 16: Upload all documents in pdf format.

Step 17:Click on final submission button in menu bar after entering place and date in  declaration  form.

Step 18: Final step is to make online payment through clicking on particular button, no modifications can be made once the payment is done.

Note: Once approval for registration is granted, it is valid for five years. However application for renewal shall be made six months prior to expiry of registration.