According to section 6(1) of the FCRA (Foreign Contribution Regulation Act) 2010, every society, charitable trust, and section 8 companies that receive donations or contributions from foreign sources are required to obtain registration under this Act.
Such sources/entities are required to either receive permission or register with the Ministry of Home Affairs prior to accepting any foreign contribution as defined under the Foreign Contribution (Regulation) Act, 2010 (“FCRA”). The government has laid down certain rules and regulations for such transactions to discourage illegal activities, which can be harmful to our country’s national security.
What are the types of FCRA Registration Process?
Proper FCRA Registration
To be eligible for FCRA registration, the applicant needs to meet the following minimum requirements. Those are as follows:-
- The applicant must register, and its operations are for a minimum period of 5 years.
- The applicant must spend a minimum of Rs. 10 Lakhs in the past 3 years to advance its main objects. Make sure it does not include any type of administrative expenditure.
- The applicant also needs to submit the last 3 years’ financial statements audited by qualified chartered accountants.
Prior Permission for FCRA Registration
If the organization is newly registered, and one is willing to receive any type of foreign contribution, it requires prior permission for the same. In order to apply for prior permission, the following minimum requirements are mentioned below. Those are as follows:-
- The funding is to be used for a specific purpose.
- The detail of the foreign owner described at the time of making an application.
- Amount of foreign contribution
Eligibility criteria of FCRA Registration
FCRA registration is the mandatory requirement for receiving any kind of foreign contribution. The applicant applying for FCRA registration must be a non-profit organization registered and operating under the following acts. The Acts are as follows:-
FCRA Registration Process
- FCRA Online Portal- Go to the Ministry of home affairs website by typing in the address of web browser, https://fcraonline.nic.in
- Click on to FCRA Online Forms
- On next screen clock on to Application for FCRA Registration
- Then select Click to Apply Online button to apply for FC3 (Form) Registration
- Click to Sign up to generate the new user ID and password
- Enter the data and fill all the mandatory fields.
- After saving the details login with new username and password and Login to your account
- Choose FCRA Registration from the drop menu. Click on to apply online.
- Click to Proceed Registration
- Click on the FC3 menu from the title bar to start the procedure of new registration.
- The Association Form will be displayed, and the applicant needs to fill the mandatory details of the form along with the required documents. Click to submit button.
- Click on the Executive Committee option from the menu bar and to the executive committee form. Enter all the details regarding executive committee
- Select Add details of key functionary. One can add/edit/delete the details that are entered in an executive committee.
- To add further foreigner details, select a record checkbox, and click on the add/view button.
- One needs to enter the EC details by selecting the option from the menu list.
- After entering all EC details and click to save button.
- One has to provide the bank details such as bank name, IFSC code, account number, and bank address.
- Then, all the required documents need to be uploaded.
- Click on to the final submission button on the menu bar after entering the place and date.
Conditions for FCRA registration Process and prior permission
In terms of Section 12 (4) of FCRA, 2010, the following must be the conditions for a grant of registration and prior permission. Those conditions are as follows:-
(a) The ‘person’ making the application for registration or grant of prior permission-
- must not fictitious or benami;
- must not be prosecuted or convicted for indulging in activities aimed at conversion by way of inducement or force, either directly or indirectly;
- must not be prosecuted for creating communal tension or disharmony in the specified district or any other part of a country;
- must not be found guilty of diversion or mis-utilization of its funds;
- must not engaged or likely to engage in the propagation of sedition or advocate violent methods to achieve its ends;
- is not likely to use a foreign contribution for personal gains or divert it for undesirable purposes;
- must not contravene any of the provisions of this Act;
- must not been prohibited from accepting foreign contribution;
- the person is an individual who has not been convicted under any law for the time being in force, nor any prosecution for any offense is pending against him.
- The person other than an individual, any of its directors or office bearers must not be convicted under any law for the time being in force, nor is any prosecution for any offense pending against him.
(b) The acceptance of the foreign contribution by the association/ person is not likely to affect prejudicially –
- The sovereignty and integrity of India;
- A security, strategic, scientific or economic interest of the State, public interest;
- Freedom or fairness of election to the Legislature;
- Friendly relation with other foreign State;
- Harmony between religious, racial, linguistic, social, regional groups, castes or communities.
(c) The acceptance of the foreign contribution-
- Must not lead to incitement of an offense
- Must not endanger the life or physical safety of any person.
FCRA Act, 2010 was enacted by the Parliament to consolidate the law to regulate the acceptance & utilization of foreign contribution or foreign hospitality by individuals or associations or companies for any activities detrimental to national interest and matters connected in addition to that or incidental to that. We at CorpBiz help our clients in FCRA registration process as we make it simple and easy for individuals and businesses.