What is the procedure of FCRA Registration? – An Overview

The government authorities issue the FCRA Registration certificate, and it is mandatory to acquire or receive any foreign grants or foreign contributions by any registered society, institution, association, trust, and NGOs. The Foreign Contribution Regulation Act, 2010 regulates the utilization and acceptance of foreign contribution by certain individual companies. Also, there are two types of registration under FCRA, 2010, and one is Normal registration, and the second is Prior permission. Scroll down to check all the information regarding the registration process of FCRA.

Eligibility criteria for FCRA Registration

The following are the eligibility criteria for the registration:

For Normal Registration:

• Trust registered under the Indian Trust Act.
• Societies registered under the Indian Society Registration Act.
• Section 8 companies under the Companies Act.
• Must submit copies of the last three years of the financial statements (audited by professional Chartered Accountants).
• Must have spent a minimum of Rs. Ten lakhs in the last three years (must be audited by experienced and qualified Chartered Accountants).

For Prior Permission Registration: This registration is for those organization which is newly registered.

• Must register under the Indian Trusts Act, 1882, or the Societies Registration Act, 1860.
• Submit a commitment letter from the donor to the Ministry of Home Affairs, by a given amount of contribution and also the purpose for which it is proposed.
• If the foreign donor organization and Indian recipient organization have a common member, the following conditions should meet:
• The Chief Functionary of the Indian Organization cannot be a part of the donor organization.
• At least 51% of the Indian recipient organization members should not be members of the foreign donor organization.
• In the case of a foreign donor, they cannot be the Indian Organization's Chief Functionary.
• At least 51% of the governing body members should not be the close relatives of the donor.

Non-eligible entities for applying for FCRA Registration

Following are the list of entities who are not allowed to be granted Registration:

• If the applicant engaged in any violent activities.
• Utilized foreign contribution for its personal use.
• The applicant is fictitious and Benami.
• An applicant who has been convicted for any communal tension made in any part of the country.

Documents required for FCRA Registration

Following are the list of necessary documents required for the Registration:

• Obtain a copy of the trust deed, incorporation certificate, or any other certificate hold by such entity.
• PAN of NGO.
• Copy of and Articles of Association and Memorandum of Association.
• Signature of the Chief Judiciary (in JPG).
• Detailed report on last three years of activities.
• Copy of audited financial statement, P and L account, details of Income-Expenditure, and cash flow statement of the last three years.
• Obtained certificate under Section 12A and 80G of Income Tax.
• CTC of the resolution passed by a governing body authorized by NGO.

FCRA Registration Process

The following are the steps to apply for registration:

• First, fill the online form FC-3 available on the official website of FCRA, i.e., https://fcraonline.nic.in.
• Click "FCRA Online Forms" for the registration.
• Then, the new window will open.
• Select "Apply Online" under application for FCRA registration (FC-3).
• A new user must sign up for the application form.
• Fill and complete the form with all the mandatory details.
• After this, click on the Save button, and a 'User ID' will be generated.
• Then applicants need to sign up by using login credentials.
• Then continue to start registration step by step.
• Once the form is completed, the applicant needs to scan and attach the documents in pdf format.
• Complete the registration by making payments through online payment gateways.

The validity of FCRA Registration

Following id the validity period in both the cases Prior Permission and Proper FCRA Registration:

• For Prior Permission:

Following is the validity period of the registration under the prior permission method:

1. Five years from the date of approval.
2. Till the date, the foreign contribution is fully utilized.

• For Proper FCRA Registration: The validity period of the registration is five years from the approval date. After the expiry, it is required to be renewed to receive any further foreign contribution.

Renewal of FCRA License

The FCRA registration is valid for five years; after that, you can renew the license by applying for the renewal. An entity will apply for renewal within the following timelines:

• At least six months before the date of the license is getting lapsed.
• At least twelve months before the date when registration lapses.

Cancellation of FCRA Registration

The following are the reasons which are considered for canceling the license:

• If the entity fails to submit an annual return before the due date.
• In case of any allegation imposed against the organization for any wrongdoing in operations and if all the allegation proved true.
• If the received contribution is not utilized for the entity's main object neither for achieving the purpose stated during registration.
• NGO fails to comply with all the provisions of the Foreign Contribution Act.

Conclusion

The need for FCRA registration is mandatory for the regulation of foreign contribution and foreign hospitality, for a public interest, for friendly relations with any foreign state, and the sovereignty & integrity of India. The Foreign Contribution Regulation Act, 2010 regulates the acceptance and utilization of foreign contribution by certain individual companies.

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