FCRA Registration

The department of FCRA Registration comes under the Ministry of Home Affairs. So as to control the foreign contribution or foreign hospitality received by any person, organization or corporation the Government has incorporated laws and guidelines identifying with such transactions. For this reason the Foreign Contribution (Regulation) Act, 2010 was enacted. Societies, Charitable Trusts, Section 8 Company that obtains foreign donation or contribution from foreign sources is requisite to get registration under Section 6(1) of Foreign Contribution Regulation Act, 2010. Therefore, registration under the Foreign Contribution Regulation Act, 2010 is known as FCRA registration.

Also, the association looking for registration ought to have spent at least Rs.10, 00,000 lakhs in the course of the last 3 years on its items, barring administrative expenses. Statements of Expenditure and Income, properly reviewed by Chartered Accountant, for the last 3 years are to be submitted to approve that it meets the financial parameter. If an organization which is newly registered, might want to get foreign donations, at that point approval for a particular action, specific reason and from a particular source could be made to the Ministry of Home Affairs through the Prior Permission (PP) process.

Types of FCRA Registration

FCRA Registration application could be characterized in two kinds, one is proper FCRA registration and other is prior permissions.

Document Required for FCRA Registration

The following documents must be submitted:

Copy of registration official document of society.
Copies of the audited statements of accounts for the past 3 years.
Copies of the annual report of the past 3 years.
Bank Details such as Name, Account Number and Address.
List of Governing Body.
Owner’s Name.
Father’s Name.
Occupation.
Designation.
Address.
Name of the chief functionary and mobile Number.
Telephone Number of the office.
Copy of PAN Card of the Trust / Society.

Consequences for violation of FCRA Registration

The violation of FCRA Registration could attract severe penalties which could be –

a. seizure and cancellation of foreign donation receipts.

b. penalty up to 5 times the value of the foreign donation spent.

c. inspection and seizure of accounts and records.

d. compulsory prior permission requisite even if the NGO is under FCRA Registration.

e. imprisonment up to 5 years and or fine.

f. prohibition on accepting the foreign donation for 3 years for the individual convicted twice.

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Registration Process

This registration is completed through filing an online application on Form FC-3 on www.fcraonline.nic.in. The scanned copies of all the important documents and data are mandatory to be uploaded at the time of filling this form.

When the candidate is granted under FCRA Registration, such registration will stay valid for a time of 5 years. However, in the case of Prior Approval, the validity ends once the foreign contribution is completely used, for which the permission was/is allowed. This period will not surpass 5 years.

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FCRA REGISTRATION FEES

An application made for the grant of prior permission should be followed by a charge of Rs.5000/ - while an application made for the grant of the registration will be followed by a fee of 10,000/-.

FAQs

Who can be an applicant for FCRA?

The prerequisite for registration under FCRA is that the applicant should be registered under an existing statute which includes.

1. Societies Registration Act, 1860 or

2. Indian Trusts Act, 1882 or

3. Section 8 of Companies Act, 2013), etc

When is FCRA Registration Required?

Whenever any NGO either in the form of Trust, Society or Section 8 corporation is willing to receive any kind of foreign contribution or donation, they need to obtain FCRA Registration under Section 6 (1) of Foreign Contribution (Regulation) Act, 2010. Regardless of the nature of the contribution i.e. either cash or kind, the registration is compulsory.

Who are disqualified to apply for FCRA registrations?

The conditions which disqualify a person are;

1. It is fictitious or benami in nature.
2. Either the candidate is an individual or in case of any corporation, any of its directors/ office bearers have not been prosecuted or convicted for.
a. Forcing religious conversions either directly or indirectly through their activities.
b. For creating communal tension.
3. Is involved in the propagation of sedition or advocating violence of any nature.
4. Found guilty of wrongful utilization of its funds and is likely to use the amount of contribution for its personal gains.
5. Has breached any of the provisions of this Act.
6. Is prohibited from accepting foreign contribution.

What are the reasons for Cancellation of FCRA Registration:-

The reasons for which an NGO’s foreign funding registration might be canceled are –

The fund given by the foreign donor is not utilized properly and used for own personal interest.
The NGO fails to file annual compliance for 3 consecutive years.
Any associate of the firm files a complaint that the NGO is not working properly and if it is proved.

When Renewal of FCRA Registration can be done?

The registered entity must 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.