The Foreign Contribution Regulation Act 1976 or FCRA is a law of the Government of India that regulates the receipt of foreign contribution or assistance to Indian territories from outside India. It is necessary to ensure that such assistance does not affect the political or any other situation in India.
With the increase in the number of charitable activities around the globe, there is a rapid increase in the contribution or donations received from foreign companies, trusts, or individuals. To regulate foreign contributions and their utilization, the government has come with Foreign Contribution Regulation Act (FCRA),2010.
The main aim of FCRA, 2010 is to regulate the foreign contribution and its utilization and prohibiting the foreign contribution and its utilization for activities harmful to the national interest.
1. The FCRA Registered organizations can reach to the following international bodies for donations:
2. The registered organization can receive and use the foreign contribution legally.
3. Foreign contribution and its utilization can be effectively managed through its extensive reporting to the government.
4. Even the new organization can get prior permission for receiving foreign contributions for specific purposes which helps them grow faster.
FCRA registration is governed by FCRA, 2010. The act specifies the following criteria for the applicants seeking registration under FCRA:
The newly registered organization can opt for prior permission from the Ministry of Home Affairs for accepting foreign contributions and their utilization.
1. First step is to access https://fcraonline.nic.in/home/fcra_onlineform.aspx. FCRA Portal.
2. Next step is to select Form FC – 3A for FCRA Registration. In case of prior permission is required, the form is FC – 3B.
3. Next step is to create a user id and password for new users by clicking the sign-up option.
4. After login, the user is required to fill in all the relevant information which includes:
5. All the documents are attached.
6. Form is filed by making the online payment.
7. After verification the FCRA registration is granted.
The time required for FCRA Registration is four months from submission of all the requirements.
The FCRA Registration is valid for a period of five years.
The application for renewal must be filed 6 months prior to the expiry of registration.
Form FC - 3C.
Form FC -7.
Prior permission route is ideal for newly registered organizations which seeks foreign contribution. For Prior permission, Form FC- 3B needs to be filed. This form requires the applicant to submit a letter from the donor specifying the amount of donation and its purpose.
The amount can include all the expenses which are spent to achieve the objectives of the organization except admin. expenses.
The due date is 31st December of the following financial year.
Following attachments are required:
• Copy of Income & Expenditure Account.
• Copy of Balance Sheet.
• Statement of Foreign Contribution.
• Statement of Bank Account.
• Chartered Accountant Certificate.
• Declaration Certificate of Chief Functionary.
Yes, the foreign contribution can be in rupees provided it comes from foreign source. For Example: The amount received from the Indian wholly owned subsidiary of foreign company is considered as foreign contribution even if the amount is received in rupees.
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