{"id":42075,"date":"2022-04-12T12:02:35","date_gmt":"2022-04-12T06:32:35","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=42075"},"modified":"2025-01-20T18:11:20","modified_gmt":"2025-01-20T12:41:20","slug":"fcra-registration-for-trust-and-other-charitable-societies","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/fcra-registration-for-trust-and-other-charitable-societies\/","title":{"rendered":"FCRA Registration for Trust and other Charitable Societies: Explained"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Prominent organizations that work for social causes need consistent funds to fuel their social campaigns. To serve this purpose, they often receive overseas funds via different modes, including wire transfers. This lays the ground for the illicit trade as well since most of these transactions remain undercover and seek minimal approval. <strong>The Foreign Contribution Regulation Act, 2010<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Foreign_Contribution_(Regulation)_Act,_2010\"><strong>[1]<\/strong><\/a><\/sup> targets this severe loophole through various regulations.&nbsp; The said legislation mandates registered charitable avenues and trusts to secure FCRA registration. This write-up shall brief the legalities around FCRA registration for Trust and other allied establishments. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/fcra-registration-for-trust-and-other-charitable-societies\/#Role_of_Foreign_Contribution_Regulation_Act_2010\" >Role of Foreign Contribution Regulation Act, 2010<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/fcra-registration-for-trust-and-other-charitable-societies\/#Underlying_objectives_of_FCRA_2010\" >Underlying objectives of FCRA 2010<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/fcra-registration-for-trust-and-other-charitable-societies\/#Eligibility_Criteria_norms_around_FCRA_Registration_for_Trust_and_other_establishments\" >Eligibility Criteria norms around FCRA Registration for Trust and other\nestablishments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/fcra-registration-for-trust-and-other-charitable-societies\/#Application_Procedure_for_obtaining_FCRA_registration_for_Trust\" >Application Procedure for\nobtaining FCRA registration for Trust<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/fcra-registration-for-trust-and-other-charitable-societies\/#Validity_of_FCRA_registration_for_Trust\" >Validity of FCRA registration\nfor Trust<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/fcra-registration-for-trust-and-other-charitable-societies\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Role_of_Foreign_Contribution_Regulation_Act_2010\"><\/span>Role of Foreign Contribution Regulation Act, 2010<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The advent of digitization and the\nevolution of information technology have completely revolutionized how we\nconnect. Every day millions of transactions take place at a brisk pace in and\nout of every nation. Cross border transactions have become a commonality today.\n<\/p>\n\n\n\n<p>The increasing number of transactions has\nmade it difficult for the government to keep track of foreign currency. This is\nwhere Foreign Contribution Regulation Act, 2010 comes into the picture. The\nsaid legislation aims at curbing the cross-border transaction that occurs in\nthe form of donations. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Underlying_objectives_of_FCRA_2010\"><\/span>Underlying objectives of FCRA 2010<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Government enacts the Foreign\nContribution Regulation Act, 2010 with the following objectives in mind: <\/p>\n\n\n\n<ul>\n<li>Keeps\nthe tap on foreign contribution or foreign hospitality coming from certain\ncompanies or individuals? <\/li>\n\n\n\n<li>Prohibit\nthe acceptance and utilization of overseas contribution for any undertakings\nwhich is against the nation&#8217;s interest or matters related thereto. <\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_Criteria_norms_around_FCRA_Registration_for_Trust_and_other_establishments\"><\/span>Eligibility Criteria norms around FCRA Registration for Trust and other\nestablishments <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The following section discusses the\neligibility criteria norms around FCRA registration for Trust and other\nestablishments<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Normal Registration<\/h3>\n\n\n\n<p>Following are the legal prerequisites to\nqualify for normal registration under FCRA 2010: <\/p>\n\n\n\n<ul>\n<li>The\napplicant must be registered under one of the following legislations <\/li>\n\n\n\n<li>Societies\nRegistration Act, 1860<\/li>\n\n\n\n<li>Indian\nTrusts Act, 1882 <\/li>\n\n\n\n<li><a href=\"https:\/\/corpbiz.io\/section-8-company-registration\" title=\"Section 8 Company\"><strong>Section 8 Company<\/strong><\/a> as per the Companies Act, 2013 <\/li>\n\n\n\n<li>Applicant\nmust have made enough contribution by pursuing undertakings in its selected\nfield for society&#8217;s benefit. <\/li>\n\n\n\n<li>Applicant\nmust have invested a minimum of ten lakh rupees in the last three years for\ngoals&#8217; fulfilment (Excludes expenditure relating to administration) <\/li>\n\n\n\n<li>Applicant\nmust have a copy of financial statements of the last three years audited by\npractising CA<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>If a\nnew establishment seeks to procure foreign contributions, then a request for\nconsent for a specific purpose, activity and from a source can be made to the\nMHA, i.e. Ministry of Home Affairs, through the Prior Permission (PP) method.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Prior Permission Registration<\/h3>\n\n\n\n<p>The Prior Permission route is ideal for\nthe newly registered entities seeking to receive foreign contributions.<\/p>\n\n\n\n<p>This is issued to receive a particular\nsum from a specific donor for performing specific undertakings\/projects. <strong><em>The\nassociation must: <\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>have\nregistered under the Companies Act, 2013 or the Indian Trusts Act, 1882, or\nSocieties Registration Act, 1860 or any such Act as may be required <\/li>\n\n\n\n<li>furnish\na declaration from the donor to the MHA, i.e. Ministry of Home Affairs, which\nreflects:-<\/li>\n\n\n\n<li>Contributions&#8217;\nsum provided <\/li>\n\n\n\n<li>Purpose\nof such contribution <\/li>\n<\/ul>\n\n\n\n<p><strong><em>Where the Indian recipient company and\noverseas donor entity have common members, the given norms need to be met: <\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>The\nChief Functionary of the India-based entity can be a part of the donor entity.<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>At\nleast 51 per cent of the members of the governing body of the recipient entity\nshould not be members\/employees of the overseas donor entity. <\/li>\n<\/ul>\n\n\n\n<p><strong><em>Where the foreign donor acting as an\nindividual: <\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>He\ncannot serve the position of Chief Functionary of the Indian entity. <\/li>\n\n\n\n<li>At least 51 percent of members of the organization&#8217;s governing body should not be the donor&#8217;s family members. <\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Application_Procedure_for_obtaining_FCRA_registration_for_Trust\"><\/span>Application Procedure for\nobtaining FCRA registration for Trust<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>To apply for FCRA registration for trust,\nmake sure they follow the given steps: <\/em><\/strong><\/p>\n\n\n\n<ol>\n<li>Visit FCRA portal <\/li>\n\n\n\n<li>Click on Form FC \u2013 3A or Form FC \u2013 3B based on the requirement. Note: Form FC \u2013 3A refers to an application for <a title=\"FCRA Registration\" href=\"https:\/\/corpbiz.io\/fcra-registration\"><strong>FCRA Registration<\/strong><\/a>, and Form FC \u2013 3B serves as the application for FCRA Prior Permission<\/li>\n\n\n\n<li>On the next window, tap on the option called &#8220;Apply Online&#8221;. Create your login credentials here. <\/li>\n\n\n\n<li>After account creation, login to the account. <\/li>\n\n\n\n<li>Head over to the dropdown menu called &#8220;I am applying for&#8221; and select the FCRA Registration. <\/li>\n\n\n\n<li>Next, opt for &#8220;Apply Online&#8221; followed by &#8220;Proceed Registration.&#8221;<\/li>\n\n\n\n<li>Click the FC-3 menu located in the title bar to initiate the e-based registration procedure.<\/li>\n\n\n\n<li>In the e-form, the applicant needs to fill out the following details; <\/li>\n\n\n\n<li>Darpan ID (not mandatory)<\/li>\n\n\n\n<li>Association Address<\/li>\n\n\n\n<li>Registration Number<\/li>\n\n\n\n<li>Registration Date<\/li>\n\n\n\n<li>Nature of the Association <\/li>\n\n\n\n<li>The main object of the association <\/li>\n<\/ol>\n\n\n\n<p>9. Tap on the Submit tab once you are\ndone with the above requirement. <\/p>\n\n\n\n<p>10. Next, head over to the menu bar and\nselect &#8220;Executive Committee&#8221;. This is a form that needs to be filled\nin accordingly.<\/p>\n\n\n\n<p>The option called &#8220;Add details of\nKey Functionary&#8221; shall enable the applicant to add\/delete\/edit the said\nform. <\/p>\n\n\n\n<p>11. Once done, tap on the Save&#8221;\nbutton.<\/p>\n\n\n\n<p>12. Further, fill up the bank-related details such as IFSC code, bank name, account number, and bank address.<\/p>\n\n\n\n<p>13. Next, upload the necessary documents\nin the standard format and fill place and date.<\/p>\n\n\n\n<p>14. Next, tap on the submission button to\nproceed further. <\/p>\n\n\n\n<p>The next step is fee submission. Visit\nthe payment window for this purpose. <\/p>\n\n\n\n<p><strong><em>Note: The Form becomes non-editable after\nthe form submission. Henceforth, double-check the steps you have taken to avoid\ndifficulties. <\/em><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Validity_of_FCRA_registration_for_Trust\"><\/span>Validity of FCRA registration\nfor Trust<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>FCRA registration comes with a standard\nvalidity of five years, and it must be renewed within six months of the\nexpiration date. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Having FCRA registration in place means that an establishment is committed to fair practices for transacting funds or donations from abroad. It helps build Trust among foreign contributors and keeps illicit transactions out of the equation. FCRA registration for Trust is a fundamental legal requirement for securing overseas donations. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/fcra-registration\">What is the process to get FCRA registration?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Prominent organizations that work for social causes need consistent funds to fuel their social campaigns. To serve this purpose, they often receive overseas funds via different modes, including wire transfers. This lays the ground for the illicit trade as well since most of these transactions remain undercover and seek minimal approval. The Foreign Contribution Regulation [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":42077,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[267],"tags":[2248],"acf":{"service_id":"13"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":5006,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/42075"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=42075"}],"version-history":[{"count":7,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/42075\/revisions"}],"predecessor-version":[{"id":68425,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/42075\/revisions\/68425"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/42077"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=42075"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=42075"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=42075"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}