FCRA Registration

What is FCRA Registration?Image result for Types of FCRA Registration

FCRA Department comes under the Ministry of Home Affairs. FCRA Registration is optional for NGO / Trust / Section 8 Company

In order to regulate the foreign contribution or foreign hospitality received by any individual, association or company the Government has consolidated all the laws and regulations relating to such transactions. For this purpose Foreign Contribution (Regulation) Act, 2010 was enacted. This was done to create a transparent mechanism for individuals and organizations through E-governance of FCRA related activities. This transparent system was created to discourage any detrimental activities which can be against national interest.

Types of FCRA Registration

FCRA Registration can be categorized in two types, one is proper FCRA registration and other is prior permissions. Apart from the eligibility critaria defined for the applicants, period of existence of the applicant organization is also a determining factor for deciding the Category of FCRA registration. Following are the specifications determining the type of FCRA registration.

Proper FCRA Registration

In order to be eligible to apply for proper FCRA registration following minimum requirements must be met with:

  • The applicant must be registered and operating for a minimum period of 5 years.
  • The organization must have spent minimum 10 Lakh rupees in the last 3 years for furtherance of its main objects. This amount shall not include any kind of administrative expenditure.
  • The applicant is also required to submit last 3 years financial statements. These financial statements must be audited by qualified Chartered Accountant.

Prior Permission

On the other hand, if a newly registered organization is willing to receive any kind of foreign contribution then it can apply for prior permission. Following minimum requirements are to be met with in order to apply for prior permission:

  • The foreign owner is specified at the time of making application.
  • The funding is to be used for specific purpose.
  • Amount of foreign contribution is also defined.

Eligibility Criteria for FCRA Registration

As we have discussed for receiving any kind of foreign contribution FCRA Registration is mandatory requirement. Now we will discuss who is eligible to apply for FCRA registration. The applicant must be a non-profit organization registered and operating under any of the following statutes:

  • Under Indian Trusts Act, 1882 as registered Trusts or
  • Under Societies Registration Act, 1860 as registered Society or
  • Under Companies Act, 2013 as a Section 8 Company etc.

Along with the organizational registration following pre-conditions are also required to be satisfied by the applicant to receive foreign contribution:

  • The applicant institutions must have been set up with charitable objective of serving the society in any manner like promotion of health, education, art, cultural, religious, sports etc.
  • The organization must not have been prohibited as per Section 3 of the Foreign Contribution (Regulation) Act, 2010.
  • FCRA Registrationis granted after proper assessment of application by the authorities.

Process of FCRA Registration?

The process of FCRA Registration is quite straightforward. This registration is done through filing an online application on Form FC-3. Scanned copies of all the relevant documents and information are required to be uploaded at the time of filling this form.Image result for Process of FCRA Registration

However, there is a pre-requisite to this registration. To register under FCRA, the NGO must have a DARPAN ID. For this ID, it is required to register on DARPAN portal provided the NITI Ayog.

However, this seems relatively easy. There is a long list of documents required to be attached with the application. Thus, it is recommended to take expert help of professionals in the process. The authority has been very strict in terms of approving the FCRA Registration application. The applications along with the attached documents are analyzed in great detail. In past large no of FCRA Registration / License have been canceled.

Our team of experts, here in Enterslice can ensure to file error free FCRA Application will reduce the chances of rejection / re-submission.

What is The Document Requirement for FCRA Registration?Image result for Process of FCRA Registration

For Registration

  • Self-certified copy of registration certificate/Trust deed etc., of the applicant association.
  • Copy of PAN of the NGO.
  • Self-certified copy of relevant pages of MOA/AOA/Deed reflecting the main objects of the association.
  • Jpg file of signature of the chief functionary.
  • Activity Report of last three years.
  • Copies of audited Assets and Liabilities, Receipt and Payment, Income and Expenditure statement etc. of last 3 years reflecting the expenditures.
  • Detail about the current and past management of the trust.
  • Annual report of the NGO and details of work done in past 3 years.
  • A true copy of the resolution passed by the Governing Body of the NGO.
  • A Copy of certificate issued by the Income Tax Authority under 80G & 12A of the Income Tax Act.

For Prior Permission

  • Self-certified copy of registration certificate/Trust deed etc., of the applicant association.
  • Copy of PAN of the NGO.
  • Self-certified copy of relevant pages of MOA/AOA/Deed reflecting the main objects of the association.
  • Jpg file of signature of the chief functionary.
  • Duly signed approval/commitment letter from the foreign contributor.
  • Copies of audited Assets and Liabilities, Receipt and Payment, Income and Expenditure statement etc. of last 3 years reflecting the expenditures.
  • Detail about the current and past management of the trust.
  • A true copy of the resolution passed by the Governing Body of the NGO.

Book this Service Here

  • February 16, 2020