Section 6(1) of the Foreign Contribution Regulation Act, 2010 requires charitable trusts, societies, and Section 8 companies that receive foreign contributions or donations to register. A FCRA registration is one that is made under the Foreign Contribution Regulation Act of 2010. The procedure for obtaining FCRA registration in India is discussed in this article.
Organizations seeking foreign donations for specific cultural, social, economic, educational, or religious programmes can apply for FCRA registration or apply for “prior permission” to receive foreign contributions. A Trust, Society, or Section 8 Company is preferable to an FCRA applicant. The not-for-profit organisation must have been in operation for at least three years before to filing the FCRA application, and it must not have accepted any foreign contributions without prior approval from the government. In addition, the business seeking registration must have spent at least Rs.10 lakh on its goals and objectives in the previous three years, excluding administrative costs. Statements of Income and Expenditure for the last three years, thoroughly audited by a Chartered Accountant, must be submitted to verify that it fulfils the financial parameters. If a newly registered entity wishes to receive foreign donations, the Ministry of Home Affairs can grant approval for a specific activity, specific purpose, and from a specific source using the Prior Permission (PP) approach.
Form FC-3 can be used to apply for FCRA registration. The following documents must be presented with the application:
The FCRA registration is valid for five years after it is approved. A renewal application for FCRA registration can be submitted six months in advance.
If you are facing any such issues while doing FCRA registration, renewal, amendment etc. you can contact us at @ 70152-77705 or write to us at [email protected]
Violations of the FCRA can result in the following penalties:
According to the FCRA 2010, there are two options for an application to gain registration:
The applicant must be registered under one of the following statutes:
An applicant must have made appropriate contributions to society by engaging in activities in their chosen field.
It must have spent at least Rs. 15 lakhs in the last three years to achieve its goals.
Financial statements for the previous three years, duly audited by certified Chartered Accountants.
If an entity that is newly registered, likely to receive the foreign contributions, then approval can be made to the Ministry of Home Affairs via the Prior Permission (PP) method.
The Prior Permission Registration is preferably suited for those institutions that are newly registered and are likely to receive foreign contributions. Prior Permission is granted for receiving the specific amount from a specific donor for carrying out specific projects. The Non-profit organization must be registered:-
Submit a particular commitment letter from the contributor to the Ministry of Home Affairs which indicates (1) Amount of contribution given, and (2) Aim for which it is proposed to be given.
If in case, the Indian recipient organization and foreign donor organization have common members, the following conditions need to be met:-
I- That individual cannot be the Chief Functionary of the Indian organization.
II- At least 51% of office bearers/members of the governing body of the recipient entity should not be the family members and close relatives of the donor.
Following entities are not allowed to be granted FCRA registration:-
1. The sovereignty of India
2. Public Interest
3. Relationship with any state.
FCRA registration remains valid for five years, which can be renewed by applying for the renewal. An entity shall apply for renewal within the following timelines:
In case authorities are of the view that registered entity is not operating as per the provisions of law and its license needs to be cancelled, such authority can do so by giving the notice to the concerned entity. Following are the few reasons that can be considered while cancelling the license:
Disclaimer: This article does not provide legal advice. We are not liable for any inaccuracies, damages, or losses. Legal advice should be sought in case of any concerns.
If you are facing any such issues while doing FCRA registration, renewal, amendment etc. you can contact us at @ 70152-77705 or write to us at [email protected] I have done my best to provide all the specifics, but please accept my apologies if any of the information supplied is incorrect. Please feel free to comment, interact, and propose topics for future posts.