Overview of FCRA Registration

Charitable Trusts, Section 8 Companies, and Societies in India that receive foreign donations or contributions are required to obtain FCRA (Foreign Contribution Regulation Act) Registration under Section 6(1) of the FCRA, 2010. The primary aim of the Foreign Contribution Regulation Act, 2010, is to regulate foreign donations and contributions, preventing money laundering and ensuring transparency in their use. As a result, all organizations that receive foreign contributions must be registered under FCRA.

As per Section 2(1)(h) of the FCRA, "foreign contribution" refers to donations provided by foreign sources, which include:

• Any currency, whether Indian or foreign;
• Any article, except for personal gifts;
• Any securities, including stocks, bonds, and shares.

Objectives of FCRA Registration in India

The Foreign Contribution Regulation Act, 2010, was introduced with the following key objectives:

• To regulate the acceptance and utilization of foreign hospitality or contributions by specific individuals, organizations, or associations.
• To prohibit the acceptance and use of foreign hospitality or contributions for activities that are detrimental to national interests or for any related matters.

Types of Registration Under FCRA Act

There are two main types of FCRA registration available:

1. Normal Registration:

   For Normal Registration, the applicant must meet the following criteria:

   • Be registered under the Indian Trusts Act, 1882; the Societies Registration Act, 1860; or as a Section 8 Company under the Companies Act, 2013.
   • Have made significant contributions to society by undertaking activities in the designated field for the public good.
   • Have spent a minimum of Rs. 15 lakhs in the last three years towards achieving its objectives.
   • Submit audited financial statements for the last three years, certified by a qualified Chartered Accountant.
   • For newly registered companies expecting to receive foreign contributions, approval can be obtained through the Prior Permission (PP) method from the Ministry of Home Affairs (MHA).

2. Prior Permission Registration:

   This type of registration is suitable for newly registered organizations that wish to receive foreign contributions for specific purposes. It is granted for receiving a particular amount from a specific donor to carry out specific projects or activities.

   For Prior Permission Registration, the applicant must:

   • Be registered under the Indian Trusts Act, 1882, the Societies Registration Act, 1860, or as a Section 8 Company under the Companies Act, 2013, or any other relevant Act.
   • Submit a commitment letter from the donor to the MHA, indicating:
     • The amount of contribution being given.
     • The purpose for which the contribution is intended.

   Additionally, when there is a connection between the Indian recipient organization and the foreign donor organization, the following conditions apply:

   • The Chief Functionary of the Indian organization cannot be a part of the foreign donor organization.
   • At least 51% of the members or office-bearers of the Indian organization’s governing body should not be employees or members of the foreign donor organization.
   • In cases where the foreign donor is an individual, they cannot be the Chief Functionary of the Indian organization.
   • At least 51% of the office-bearers or members of the Indian organization’s governing body should not be family members or close relatives of the foreign donor.

Eligibility Criteria for FCRA Registration in India

The eligibility criteria for FCRA Registration in India are as follows:

• Section 8 Companies must be registered under the Companies Act, 2013;
• Societies incorporated under the Indian Society Registration Act;
• Trust registered under the Indian Trust Act;
• Foreign contribution or donation accepted by the Trust shall not risk the life/safety of any person or shall not result in any offence;
• The entity or any company must not be prohibited in any form by the provision of the FCRA;
• The NPO for Registration must have charitable objectives to serve the society by promoting education, promotion of art, culture, religion, sports, promoting education, etc.

Who are not eligible for FCRA Registration in India?

The entities that are entities are not allowed to be granted FCRA Registration in India are as follows:

• The applicant is Benami or fictitious;
• An applicant against whom prosecution is conducted for indulging in any unfair activity;
• An applicant who has been prosecuted or convicted for any communal tension made in any area of a specified district or any other part of the country;
• The entity is engaged in some violent activities;
• The entity has utilized some foreign contributions for its personal use;
• An entity is debarred from accepting any foreign receipt or foreign grant under any provision of the law;
• Any such acceptance of the foreign grant that affects the entity prejudicially;
• The sovereignty of India;
• In the interest of the public;
• The relationship with any state in India.

Documents required for FCRA Registration in India

The documents required for FCRA Registration in India are as follows:

• Self-certified copy of the certificate of incorporation, trust deed, or any other relevant certificate held by such an entity;
• PAN of the NGO;
• Copy of Memorandum of Association (MoA) and Articles of Association (AoA) of institutions;
• Signature of the chief judiciary in the JPG format;
• A complete detailed report on the activities of the preceding 3 years;
• Audited copy of the financial statement, Income-Expenditure details, P&L Account, and cash flow statement of the preceding 3 years;
• Certified original copy of the resolution passed by the governing body authorized by the NGO;
• Certificate obtained under Section 80G and 12A of Income Tax Act. Section 80G and 12A provide certain tax exemptions to the NGOs under the Income-tax Act of India.

Procedure for FCRA Registration in India

The step-by-step process for obtaining FCRA Registration in India is as follows:

1. Access the FCRA Online Portal: The applicant must first visit the official FCRA portal.

2. Fill out the Application Form: The applicant needs to fill out the appropriate form—either Form FC-3A for FCRA Registration or Form FC-3B for FCRA Prior Permission—depending on the specific requirement.

3. Submit Registration Details: To initiate the registration process, the applicant must file Form FC-3 and provide the necessary details, including:

   • Association's address
   • Registration number
   • Date of registration
   • Nature of the association
   • Primary objective of the association

4. Fill Executive Committee Details: After entering the association details, the applicant must proceed to fill in the details of the Executive Committee.

5. Provide Bank Details: The applicant must provide bank details, such as the bank's name, account number, IFSC code, and address.

6. Upload Required Documents: All the necessary documents should be uploaded in PDF format.

7. Finalize Application: After entering all the information, the applicant must input the date and place, and then submit the application.

8. Payment and Submission: The final step involves making the online payment. Once the payment is processed and the form is submitted, no further changes can be made to the application.