Overview of FCRA Registration
All the Charitable trust, societies and Section 8 Company that receives foreign contribution or donation from foreign resources shall apply for FCRA Registration. FCRA registration is done under the Foreign Contribution Regulation Act, 2010. FCRA stands for Foreign Contribution Regulation Act. The Foreign Contribution Regulation Act, 2010 was enacted with a view to:-
The certificate of FCRA Registration is issued by the government authority and it is mandatory to obtain the FCRA registration certificate before acquiring or receiving any foreign contribution grants by any registered trust, social institutions, and NGOs.
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What are the Benefits of FCRA Registration?
Who are Eligible for FCRA Registration?
The Below-mentioned entities are eligible for FCRA Registration:-
What Documents are required for FCRA Registration?
Below-mentioned documents are required for FCRA Registration:-
What is the Procedure for FCRA Registration?
To apply for FCRA Registration, below- mentioned steps are required:-
- Accessing the FCRA Online Portal
The first step is to access the online portal of FCRA.
- Click on the Forms
Based on the type of registration, an applicant needs to click on:-
• Application for FCRA Registration-Form FC – 3A or
• Application for FCRA Prior Permission-Form FC – 3B.
- Creating the Username and Password
The next step is to apply online. Once the applicant chooses ‘Apply Online’ option, the next step is to create a username and password by clicking on the ‘Sign-Up’ option.
- Login Respective Account
Once an applicant creates a user ID and password, the message regarding the same is displayed on the screen, and the applicant may log in to the account. Once the account is logged in by the applicant, the screen will reflect “I am applying for” from which FCRA Registration has to be chosen. An applicant shall select ‘Apply Online’ following which “Proceed Registration” has to be selected.
- Start the New Registration Procedure
The next step that will reflect, in the title bar is FC-3 that is to be clicked on to start the new registration procedure.
- Providing the Relevant Details
The next step is to fill in the relevant details in the form along with the requisite documents. Along with that below-mentioned criteria is required to follow-
• An applicant needs to select The Executive Committee option from the menu bar. The particulars will be filled in the Executive Committee form.
• The applicant can add/delete/edit the details by entering “Add details of Key Functionary”.
- Providing the Bank Details
Once the above-mentioned criteria along with the details are filled, the applicant shall provide the bank details that includes:-
• Bank name,
• Account number,
• IFSC Code and
• Address of the bank.
- Uploading Documents in PDF Format
Once the applicant fills in the bank details, all the required documents are to be uploaded in PDF format. Also, the place and date need to be entered after which the final submission is done.
- Making the Payment
The next and final step is to make the online payment by clicking on the respective button. Further, no alterations can be made in the said form once the payment is made, and the form is submitted.
Note-Once the FCRA registration is granted by the authority, the registration remains valid for 3 years.
What are the Penalties for Violation of FCRA?
Violation of FCRA can attract various penalties which could be as under:-
What are the Types of Registration Under FCRA 2010?
There two ways in which an applicant can obtain registration as per FCRA 2010, those are as follows:-
The applicant must be registered under:-
An applicant must have made appropriate contributions by endeavoring activities in its chosen field for the benefit of society.
Must have spent a minimum of Rs. 15 lakhs in the last 3 years towards achieving its objectives.
Submission of the financial statements of the last 3 years that are duly audited by qualified Chartered Accountants.
If an entity that is newly registered,likely to receive the foreign contributions, then approval can be made to the Ministry of Home Affairs via the Prior Permission (PP) method.
Prior Permission Registration
The Prior Permission Registration is preferably suited for those institutions that are newly registered and are likely to receive foreign contributions. Prior Permission is granted for receiving the specific amount from a specific donor for carrying out specific projects. The Non-profit organization must be registered:-
Submit a particular commitment letter from the contributor to the Ministry of Home Affairs which indicates (1) Amount of contribution given, and (2) Aim for which it is proposed to be given.
If in case, the Indian recipient organization and foreign donor organization have common members, the following conditions need to be met:-
Non-Eligible Entities for Applying FCRA Registration
Following entities are not allowed to be granted FCRA registration:-
Brief on Renewal of FCRA License
FCRA registration remains valid for five years, which can be renewed by applying for the renewal. An entity shall apply for renewal within the following timelines:
Cancellation/Suspension of FCRA Registration
In case authorities are of the view that registered entity is not operating as per the provisions of law and its license needs to be cancelled, such authority can do so by giving the notice to the concerned entity. Following are the few reasons that can be considered while cancelling the license:
Revised Conditions under FCRA Amendment Rules 2020
The Home Ministry has notified the Foreign Contribution (Regulation) (Amendment) Rules, 2020. The amendment has made many changes to the the Foreign Contribution (Regulation) Rules, 2011. Recently, the Ministry had amended The Foreign Contribution (Regulation) Act, 2010 by notifying the Foreign Contribution (Regulation) Amendment Act, 2020 and had notified the procedure for opening & operating the designated FCRA Account
CorpBiz Procedure for FCRA Registration
Kindly utilize the steps given above to integrate legally and securely a FCRA Registration and get the benefits in the form of better-quality charitable operations. Our CorpBiz experts will be at your disposal for assisting you with guidance concerning FCRA Registration and its compliance for the smooth functioning of your charitable business in India. CorpBiz professionals will assist you in planning seamlessly at the least cost, confirming the successful conclusion of the process.
It is advisable that an attorney with “NGO/Taxation experience” must be appointed to overwhelm many of the potential pitfalls that creep around within FCRA Registration and to understand the requirement in detail. The elementary information would be mandatory from your end to start the process. The Attorney will begin working on your request once all the information is provided, and the payment is received.
CorpBiz is one of the platforms which coordinate to fulfil all your legal and financial requirements and connect you to consistent professionals. Yes, our clients are pleased with our legal service! Because of our focus on simplifying legal requirements, they have consistently regarded us highly and providing regular updates.
Our clients can also track at all times the progress on our platform. If you have any questions about the FCRA Registration process, our experienced representatives are just a phone call away. CorpBiz will ensure that your communication with professionals is charming and seamless.
Frequently Asked Questions
- Initials of Chief Functionary in JPG format.
- Certified copy of the Trust Deed or Registration Certificate of the Association.
- Duly signed a letter of commitment from Donor.
FCRA registration is categorized into the following two types:
- Proper FCRA registration
- Proper Permission for FCRA registration
After the receipt of FCRA License, the entity must file an annual return in prescribed form FC-4 online through the official website of https://fcraonline.nic.in along with following documents certified by chartered Accountant shall be annexed with FC-4:
- Scanned copy Income Statement
- Scanned copy of Balance Sheet
- Statement of the foreign receipt
- Payments and expenditure incurred by an entity