Foreign Contribution Act, 2010 is a consolidating act whose scope is to regulate ‘’the acceptance and usage of Foreign Contributions or Foreign hospitality by association or by any other persons who are working in the main or important areas of national interest’’.
Ministry of Home Affairs regulates the department of FCRA Registration. So as for the purpose of controlling foreign contribution or foreign grants received by any individual, organisation, or corporation, the Government has incorporated laws and guidelines to identify such contributions. Herewith this blog, we will try to understand why and how Societies, Charitable trust, and Section 8 companies receiving funds from foreign needs to obtain FCRA registration certificate.
What is FCRA Registration?
Under section 6 (1), FCRA Act 2010, Charitable Trusts, Societies, and Section 8 companies that receive a foreign contribution or any donation from a foreign source, are required to obtain FCRA registration. Such registration and contributions are regulated under the Foreign Contribution Regulation Act, 2010.
What is Foreign Contribution?
According to Section 2 (1) (h) of FCRA Act 2010, ‘’Foreign Contribution’’ means the donations, delivery or transfer made by any foreign source;
- Under this clause, a donation, delivery, any currency received by any person who has received any grant, which is from any foreign resource, either directly or through one or more person;
- According to sub-section (1) of section 17, the interest accumulated on the foreign contribution deposited in any bank or any income derived from foreign contribution shall also be counted as foreign contribution.
What are the types of FCRA Registration?
FCRA registration is characterised in two kinds –
- Permanent FCRA Registration https://fcraonline.nic.in/FC3.aspx?Resp_Id=1
- Prior Permission https://fcraonline.nic.in/FC3.aspx?Resp_Id=6
Permanent FCRA Registration;
Such registration can be performed when non- government organisation is running from 5year.
Such Certification is possible when non- government organisation is running from 1 year.
Who can be the applicant for FCRA?
For applying FCRA applicant should be registered under as;
- Society Registration Act,1860;
- Indian Trust Act, 1882;
- Section 8 of companies act,2013
What is the Eligibility Criteria for obtaining FCRA Registration?
Eligibility for Prior Permission;
- The applicant’s organisation shall be running for at least 1 year;
applicant needs to furnish the details of foreign donors, along with their
credentials. Details like ;
- Address of the donor,
- Designation of the donor,
- Cause for which donor is contributing
- Applicant should have to specify the actual amount of money that been received from the foreign contribution along with the registration form.
Eligibility for Permanent Permission;
- This particular form of registration is valid for five years, and the applicant organisation should be running for at least years;
- The applicant needs to submit the annual report for at last three year along with the audit report;
- Other relevant information like;
- PAN Card
- The By-Laws
- The MOA and the AOA
Documents Required for FCRA Registration;
- Copy of registration official document of society
- Copy of audited statement of accounts from last three years
- Annual report of the past three years
- Bank details, such as account number, and address
- List of Governing body
- Owner’s name
- Copy of PAN card Trust/Society
Read our article:How Registration of NGO in India under 12A and 80G provide Tax Exemption?
What is the Online Process of FCRA Registration?
As an applicant, you need to visit FCRA online portal. (https://fcraonline.nic.in/home/index.aspx);
- Click on to the FCRA Online Forms;
- On clicking on Application for Online FCRA Registration, next screen will appear, click to apply online for FC-3(Registration)
- Now you need to sign up into FCRA, by selecting sign up option.
- In next window enter all mandatory details asked for and click on save;
- After saving the details, the User ID will be successfully created;
Login to FCRA
- Now, login into a portal by user ID and password;
- Option will appear,’ I am applying for’, select for FCRA registration from the drop-down;
- For Registration, ‘Click here to proceed New Registration’’;
- Click on FC3 menu in the title bar to proceed further for step by step registration
Select Association Details from the menu. The association detail form will be displayed. Enter following details;
- Darpan ID
- Address of Association
- Registration number
- Place of registration
- Date of registration
- Nature of association
- Main aim of the association
Click on submit button and save data
Executive Committee Form
- Now go to Executive Committee Form.
- Enter all details about Executive Committee.
- To add further foreigner details, select checkbox of the record
- A new screen will be displayed, add related foreigner details. You can able to Edit/Delete Record by clicking on the appropriate option.
Here, furnish your bank details such as Bank Name, IFSC code, Account Number, Address of the bank.
Other details Section
- Click on Other Details option from the menu to provide all other information.
- Now, you have to upload all relevant documents in PDF format.
- Click on final submission from the menu bar
- Once you submitted finally, a pop-up window will appear, click on OK.
- click on Make Online Payment button from the menu bar
- Click on Continue for Payment button in this screen. Select the payment gateway and proceed further for payment.
What are the benefits of FCRA Registration?
NGO, Section 8 companies and Societies who are FCRA registered, can reach to the following international bodies for donations;
- British High Commission
- Japanese Embassy
- New Zealand High Commission
- Ford Foundation
- Canadian High Commission
- GIFRID (Isreal)
What are Penalties on Violation of FCRA Registration?
The violation of FCRA Registration could attract the following penalties;
- An organisation can face seizure and cancellation of foreign donation receipts.
- Penalty on violation of FCRA Registration is up to 5 times the value of the foreign donation spent.
- Even the organisation can face inspection and seizure of accounts and records.
- Compulsory prior permission is required even if the NGO is under FCRA.
- Imprisonment on violation is up to 5 years and or fine.
- There is a strict prohibition on accepting foreign donation for three years for the individual convicted twice.
On what ground FCRA Registration can be cancelled?
There can be various reasons for the cancellation of FCRA Registration which are as follows;
- Funds received from a foreign source is not used for the correct purpose, instead used for own individual interest;
- A case where NGO has failed to furnish its yearly compliances for three consecutive years;
- A complaint is filed by the company member its self, regarding the organisation is not performing effectively and it is proved.
Why one should choose Corpbiz for FCRA Registration?
- Our process is Easy, Quick and Affordable;
- We have on-time delivery and 100% success rate;
- Team of expert for continues support;
- Affordable and transparent pricing
If you’re NGO, Society or Trust is receiving donations through a foreign source; it’s advisable to get the FCRA registration certificate. In addition to this, Corpbiz has the highest success rate in providing better results in registrations. Get in Touch with team Corpbiz, and know how you can proceed further with the FCRA registration process.
Read our article:What are Section 8 Companies? Know its provisions and Incorporation Procedures