According to Section 6(1) of the Foreign Contribution Regulation Act of 2010, charitable trusts, societies, and Section 8 companies that accept donations or contributions from abroad must register. A FCRA registration is one such registration made pursuant to the Foreign Contribution Regulation Act, 2010. In this post, we examine the steps involved in becoming FCRA-registered in India.
Qualifications for FCRA Registration
Organizations looking to receive foreign donations for specific cultural, social, economic, educational, or religious programmes may register with the FCRA or use the “prior approval” approach to receive foreign contributions.
A Trust, Society, or Section 8 Company is preferred as an FCRA applicant. The not-for-profit organisation must also have been operational for at least three years prior to filing the FCRA application, and it must not have previously accepted any foreign contributions without the government’s consent. Additionally, the organisation applying for registration must have invested at least Rs. 10,00,000 in its goals and objectives over the previous three years, excluding administrative costs. To demonstrate that it satisfies the financial requirement, statements of income and expenditure for the last three years that have been properly audited by a Chartered Accountant must be produced.
Any charitable trust, society, or Section 8 company that receives a grant or contribution from an international source must apply for FCRA registration. The Foreign Contribution Regulation Act of 2010 mandates FCRA registration. FCRA, or the Foreign Contribution Regulation Act, stands for. The 2010 Foreign Contribution Regulation Act was passed in order to:
By established individuals, associations, or businesses, strike a balance in the acceptance and use of foreign contributions or foreign hospitality.
No one may receive or use foreign hospitality or contributions for any acts that are against the interests of the country, or for anything connected with or incidental to those activities.
Before obtaining or receiving any foreign contribution grants by any registered trust, social organisations, or NGOs, it is necessary to obtain the FCRA registration certificate, which is provided by the government authority.
What advantages come with FCRA registration?
Aids groups engaged in social service and working for the betterment of the public.
Organizations can receive international contributions and government aid legally if they are registered under the FCRA.
Donations from foreign organisations are permitted for entities that are FCRA-registered.
FCRA Registration documents required
The following papers are necessary for FCRA registration:
- Copy of the entity’s trust deed, certificate of incorporation, or any other certificate that is self-attested
- Information about Non-Profit Organizations and
- A copy of the institutions’ MOA and AOA,
- The top judiciary’s opinion (It shall be in JPG From)
- A thorough report on the three years’ worth of
- A copy of the financial statements, P&L account, income-expenditure information, and cash flow statements for the three years prior that have been
- Certified authentic copies of the resolutions adopted by the governing body designated by the nonprofit organisation.
- Certificate acquired in accordance with Income Tax Act Section
FCRA registration process
The steps listed below must be completed before you may apply for FCRA Registration:-
The FCRA Online Portal can be accessed
- The first step is to go to the FCRA’s internet portal.
Select The Forms
A candidate must click on the following links depending on the form of registration:
- Application for FCRA Prior Permission (Form FC-3B) or Application for FCRA Registration (Form FC- 3A).
Establishing The Username And Password
- Online application is the following stage. The applicant must then click the “Sign-Up” option after selecting the “Apply Online” option to generate a username and
Login to the relevant account
- The notice pertaining to the creation of a user ID and password is displayed on the screen once an applicant creates them, and the applicant may then log in to the account. After the applicant logs into their account, a list of “I am applying for” options appears, from which they must select FCRA Registration. The candidate must first choose “Apply Online” before choosing “Proceed “
The new registration process should begin
- The following step, FC-3, will appear in the title bar and must be clicked to begin the new registration
Providing the necessary information
- The form must then be filled out and the necessary paperwork must be Along with that, the following requirements must be met:
- From the menu bar, the candidate must choose The Executive Committee. The Executive Committee form will be filled out with the relevant
- By typing “Add details of Key Functionary,” the applicant may add, delete, or change the
Giving The Bank Information
The applicant must supply the following bank information after filling out the above requirements and details: Bank name, Account number, IFSC Code, and Bank Address.
Documents in PDF Format Can Be Uploaded
The applicant must upload all needed papers in PDF format after entering the bank information. Additionally, the location and date of the final submission must be supplied.
Paying the Amount Due
Making the online payment by clicking on the appropriate button is the last and next step. Additionally, after the payment has been paid and the form has been submitted, no changes can be made.
Note: After the government grants FCRA registration, the registration is good for three years.
What are the Consequences of an FCRA Violation?
A violation of the FCRA may result in any of the following penalties:-
- Confiscation and seizure of international contribution
- A fine of up to five times the amount of the foreign
- Examination and acquisition of accounts and documents