FCRA Registration
Legal Delight provides comprehensive FCRA Registration services, including eligibility assessment, document preparation, application filing and compliance support to ensure seamless registration for organizations seeking foreign contributions in India.
Meaning
The Foreign Contribution (Regulation) Act, 2010, (FCRA) is a legal framework in India that regulates the acceptance and utilization of foreign contributions by individuals, associations, and companies. It aims to ensure that foreign funds do not compromise national security or interests. FCRA Registration is an authorization provided by Ministry of Home Affairs to oversee the foreign donations received by Non-Profit Organizations, Charitable Trust or Section 8 Companies working on cultural, social, economic, educational, or religious programs.
Benefits of FCRA Registration
- Access to Global Funding: Opens up opportunities to receive financial support from international donors, agencies, and foundations.
- Legal Compliance: Allows organizations to legally receive foreign contributions and grants, ensuring compliance with Indian regulations.
- Improved Sustainability: Ensures a steady flow of funds, contributing to the long-term sustainability of the organization’s projects and initiatives.
Procedure for FCRA Registration
- Eligibility Check: This helps in ensuring that the organization is eligible for FCRA Registration. This typically includes being registered under Indian laws, having a definite cultural, economic, educational, religious, or social program and being in operation for at least three years with a significant track record in their chosen field.
- Document Preparation: This involves gathering the necessary documents including:
- Registration Certificate
- Memorandum of Association
- Audited Financial Statement for last three years
- Identity Proof
- Form Submission: Register on FCRA Portal and submit Form FC-3A for registration or Form FC-3B for prior permission.
- Inspection and Verification: The Ministry of Home Affairs (MHA) will conduct a thorough inspection and verification process, including scrutiny of the documents and possibly an on-site inspection.
- Approval and Issuance of Certificate: If the application is approved, the MHA will issue an FCRA registration certificate, allowing the organization to receive foreign contributions.
Documents required for FCRA Registration
- Registration Certificate.
- Memorandum of Association, Articles of Association, Bylaws or any other founding document.
- Audited Financial Statements of last three years.
- Activity Reports of last three years.
- Details of Key Functionaries.
- PAN of Organization.
- Bank Account Details.
- Digital Signature Certificate (DSC).
- Identity Proof and Passport-Sized Photographs.
- Annual Returns of last three years.
What is included in this
FAQs
The FCRA, 2010 was enacted by Parliament to unify regulations governing the acceptance and use of foreign contributions or hospitality by specific individuals, associations, or companies. It aims to prevent the acceptance and utilization of foreign contributions or hospitality for activities that could harm national interests, and to address related matters.
- Whole of India
- Citizens of India outside India; and
- Associate Branches or subsidiaries, outside India, of companies or bodies corporate, registered or incorporated in India.
- It must have definite cultural, economic, educational, religious or social programme.
- It must obtain the FCRA registration/prior permission from the Central Government.
- It must not be prohibited under Section 3 of FCRA, 2010.
- Candidate for election;
- Correspondent, columnist, cartoonist, editor, owner, printer or publisher of a registered newspaper;
- Judge, Government servant or employee of any corporation or any other body controlled or owned by the Government;
- Member of any legislature;
- Political party or office bearer thereof;
- Organization of a political nature as may be specified under sub-section (1) of Section 5 by the Central Government;
- Association or company engaged in the production or broadcast of audio news or audio visual news or current affairs programmes through any electronic mode, or any other electronic form as defined in clause (r) of sub-section (1) of Section 2 of the Information Technology Act, 2000 or any other mode of mass communication;
- Correspondent or columnist, cartoonist, editor, owner of the association or company referred to in clause (g);
Yes. The contribution received from all the non-Indian Passport Holders is treated as “Foreign Source.”
- FCRA Registration
- Prior Permission
Yes, a private limited company too may seek prior permission/registration for receiving foreign funds in case they wish to do some work useful/beneficial to society.
For all FCRA services provided, Aadhar Number & Darpan ID are mandatory.
No, as per amendment under FCRA, 2010, no organization shall receive foreign contribution in any bank/branch account other than SBI, Main Branch, New Delhi.
FCRA Registration is valid for five years, after which it must be renewed.
