FCRA Registration In India

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.

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OVERVIEW

FCRA Registration

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.

BENEFITS

Benefits & Advantages of FCRA Registration:

1. The FCRA Registered organizations can reach to the following international bodies for donations:

  • British High Commission
  • SWISSAIR
  • AUSAID
  • Japanese Embassy
  • UNESCO
  • Canadian High Commission etc.

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.

REQUIRED DOCUMENTS

Documents required FCRA Registration

  • Incorporation Certificate.
  • Activities of the preceding three years.
  • Audited Financials of the preceding three years.
  • Memorandum of Association.
  • Article of Association.
  • Trust Deed in case of Trust.
  • Registration Certificate u/s 12AB and 80G (If any).

process

Process of FCRA Registration in India

FCRA registration is governed by FCRA, 2010. The act specifies the following criteria for the applicants seeking registration under FCRA:

  • Registered under Society Registration Act, 1860 or Indian Trust Act, 1882 or Companies Act, 2013.
  • Contributed reasonably by undertaking the activities for the benefit of society.
  • Spent at least Rs. 10,00,000 in the preceding three years towards the benefit of society. The amount excludes any admin. expenses.

The newly registered organization can opt for prior permission from the Ministry of Home Affairs for accepting foreign contributions and their utilization.

The process of registration is as follows:

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:

  • Name, address, telephone number, email id, website.
  • Details of registration under Society Registration Act/Indian Trust Act/Companies Act (as the case may be), registration number, date, and place of registration.
  • Nature of activities. (Religious, Cultural, Educational or Social)
  • Main objectives.
  • Details of office bearers or directors.
  • Bank Details.

5. All the documents are attached.
6. Form is filed by making the online payment.
7. After verification the FCRA registration is granted.

Time Required

The time required for FCRA Registration is four months from submission of all the requirements.

FREQUENTLY ASKED QUESTIONS

Explore FCRA Registration In India

1. What is the validity for FCRA Registration?

The FCRA Registration is valid for a period of five years.

2. When application for renewal is required to be submitted?

The application for renewal must be filed 6 months prior to the expiry of registration.

3. Which form is required to be filed for renewal of FCRA Registration?

Form FC - 3C.

4. Which form is required for surrendering the FCRA Registration?

Form FC -7.

5. What is prior permission route?

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.

6. What can be included in the amount of Rs. 10,00,000?

The amount can include all the expenses which are spent to achieve the objectives of the organization except admin. expenses.

7. When the annual return under FCRA, 2010 is required to be filed.

The due date is 31st December of the following financial year.

8. Which form is used for annual return filing?

Form FC-4.

9. What are the attachments of annual return under Form FC-4?

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.

10. Whether the foreign contribution can be in rupees?

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.