FCRA Registration – Eligibility & Required Documents

In the current context, the world is heavily focused on social and environmental actions. Businesses themselves, in addition to their common goal of making a profit, participate in activities that promote social, economic, cultural, and environmental growth. The world today is so well connected and well connected that access to any part of the world is easy. Transactions between people, places, and countries occur daily. As a result, the inflows and outflows of foreign currencies now have a commonality. The volume at which this transaction is made is very high, and as a result, it is almost impossible to track the inflow and outflow of foreign currency in the normal way. This article will discuss the FCRA registration process, its eligibility, and required documents.

Overview of FCRA Registration

All Charitable Trusts, societies, and Section 8 Companies that accept foreign contributions or donations must apply for FCRA registration. The Foreign Contribution Regulation Act, 2010 governs FCRA Registration. The Foreign Contribution Regulation Act is abbreviated as FCRA. The Foreign Contribution Regulation Act, 2010 was passed in order to:

• Acceptance and usage of foreign contribution or foreign hospitality by formed individual associations or companies must be balanced.
• Acceptance and usage of foreign hospitality or foreign donation for any acts detrimental to national interest, as well as things linked to or ancillary thereto.

The government authority issues the FCRA registration certificate, and it is required to get the FCRA registration certificate before purchasing or receiving any foreign contribution grants by any registered trust, social institutions, or NGOs.

The Advantages of FCRA Registration

The following are the advantages of FCRA registration:

• Aids organizations engaging in social work that strive for the welfare and betterment of the public.
• If an organization is registered under the FCRA, it can legally receive foreign contributions or government support.
• Foreign bodies may make gifts to an entity registered under the FCRA.

Eligibility Criteria

The following are the Eligibility Criteria:
Normal Registration

• To qualify for standard registration, there are a few basic requirements: –
• The applicant must be registered under the Societies Registration Act, 1860 or the Indian Trusts Act, 1882 or registered as a Section 8 Company in terms of the Companies Act, 2013 any such Act may be required.
• It must make meaningful contributions by performing services in its chosen field for the benefit of society.
• You should have spent a minimum of Rs. 10, 00, 000 over the last 3 years in achieving its objectives (including administration costs).
• Must submit copies of the financial statements of the past 3 years duly reviewed by qualified Chartered Accountants.
• If a newly registered business wishes to receive external donations, then authorization for a specific purpose, specific activity, and source can be made to the Department of Home Affairs using the Pre-Permission Permit (PP) method.

Pre-Permission Registration

It is suitable for those organizations that are newly registered and would like to receive foreign donations. This is provided to obtain a specific amount from a specific contributor for specific activities/projects. The organization must: –

• • Register under the Societies Registration Act, 1860 or the Indian Trusts Act, 1882 or be registered as a Section 8 Company in terms of the Companies Act, 2013 any such Act may be required.
  • Send a letter of commitment from the contributor to the Minister of Home Affairs stating: –
    • The amount of donation provided
    • The intended purpose for which it is given
  • Where the Indian recipient organization and foreign contributing organization have the same members, the following conditions need to be met:
    • The main function of the Indian organization cannot be part of a contributor organization.
    • At least 51% of the members/managers of the governing body of the Indian receptionist organization should not be employees/members of a foreign contributor organization.
    • When an external contributor is a single person:
      • He cannot be the chief functionary of an Indian organization.
      • At least 51% of the directors/members of the governing body of the recipient organization should not be family members and close relatives of the contributor.

FCRA Registration Process  

For the FCRA registration process, the following steps are to be followed: –

• The first step is where the online site of FCRA needs access.
• Form FC – 3A (Application for Registration of FCRA) or Form FC – 3B (Application for Prior Permit of FCRA) should be clicked on, as it may be.
• The web page will then introduce the user to the online application option.
• Once the “Apply Online” option is selected, the next step is to create a username and password by clicking on “Register”.
• Once the username and password have been created, and a related message is displayed on the screen, the applicant can log in to the account.
• Once you have logged in, “I am applying for” will have a drop-down list to select from FCRA Registration. “Apply online” will be selected next, followed by “Continue Registration” should be selected.
• Next, in the title bar, the FC-3 menu will be clicked to start the new registration process.

Documents required for FCRA

This leads to the organization from where the relevant details must be submitted by the applicant and the attachments containing the following documents: 

• Darpan ID (optional)
• Organization address 
• Registration number 
• Registration date 
• Organization type 

Renewal of FCRA License

FCRA registration is valid for five years and may be renewed by submitting an application. A company must apply for renewal within the following timeframes:

• At least six months before the license’s expiration date.
• If the entity is working on a multi-year project, registration must be renewed at least 12 months before the registration expires.

Important Points to Ponder 

• Once these details are completed and an attachment, the navigation button is selected.
• The Executive Committee option should be selected next to the menu bar. Details will be completed on the Executive Committee form.
• The “Add Important Information” option enables the applicant to add/remove/edit information submitted to the Executive Committee.
• Once all the details of the Executive Committee have been entered, the “Save” button should be clicked on.
• In addition, banking details will need to be provided, including bank name, account number, IFSC code and bank address.
• Once the banking details have been submitted, all required documents must be uploaded in PDF format.
• The location and date should be entered next after which the last move button may be selected.
• The final step is to make an online payment by clicking on that particular button. Once payment has been made and the form has been submitted, no changes can be made to the specified form.

Once FCRA registration is approved, the validity is for five years. However, it should be noted that an application for renewal of FCRA registration must be made 6 months before the expiry date.

Penalties for FCRA Violations

Violations of the FCRA may result in the following penalties:

• Foreign donation receipts have been seized and confiscated.
• Penalty of up to five times the cost of the foreign donation.
• Accounts and records are being inspected and seized.

Final words

Section 6 (1) of the Foreign Contribution Regulation Act, 2010 requires charities, communities, and Section 8 companies that receive foreign donations or contributions to register. Registration of FCRA is what is done under the Export Control Act, 2010. The process for obtaining FCRA registration in India is discussed in this article.

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