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FCRA Registration

FCRA is a short form of Foreign Contribution Regulation Act that regulates and controls the foreign contributions taking place in India. The primary objective of FCRA Registration Online in India is to decriminalise the receipt of any foreign contribution by domestic organisations and for assuring the proper utilization of the funds for the assigned purpose.

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FCRA Registration - Overview

FCRA is a law of government of India which manages receipt of foreign contributions or help from outside India. FCRA registration is applicable for Charitable Trust, Society or Section 8 Company that receive foreign contribution or donation from foreign sources. The applicant must be registered under list of FCRA Registered Associations, the Societies Registration Act, 1860. ·

FCRA is the abbreviation of Foreign Contribution Regulation Act which regulates and governs the foreign contributions taking place or happening within India. The certificate for FCRA Registration is granted by the government authority and it is mandatory duty to get or receive any foreign grants or foreign contribution or foreign funds by any registered trust, institution, society, association, and certified NGOs.
The primary main of FCRA registration process is to legitimatize the receipt of any funds or contribution from foreign countries by domestic companies and to ensure the proper utilization of such contributions or funds for the prescribed objective.

Checklist for applying for FCRA Registration

Listed below are the key requirement needed for FCRA Registration process and basically, it completely depends upon the type of registration such as:

A) Responsibilities For Proper FCRA Registration:

The applicant should own a registered company which is operating for more than 5 years. The entity of the applicant must have spent a minimum of Rs.10 Lakhs in the last three years for the accomplishment of its main objectives for which the company was registered that excludes the expenses made for administrative purposes. The previous three years financial statement shall be submitted by an applicant, importantly, the financial statement must be audited by a qualified chartered accountant is mandatory.

B) The Obligation For Prior License FCRA Registration:

In case, FCRA registration consultants is willing to receive contributions or funds or grants from foreign countries then it should apply for prior permission While applying for the prior permission, it should submit the prescribed details about the foreign owner or investors or donators who is contributing the fund to the entity The fund which is received should be utilized only for the prescribed purpose

Following are the eligible companies which can apply for FCRA online registration:
  • Trust registered governed by the Indian Trust Act
  • Societies registered governed by the Indian Society Registration Act
  • Section-8 companies incorporated governed by the Companies Act
  • The applicant must obtain the registered certificate as NPO set up having charitable aims and objectives for serving the society and the locality by promoting the health, economic development, education, promotion of art, religion, culture, sports and so on in that society
  • The entity must not be forbidden in any form under the provision of the Foreign Contribution (Regulation) Act.
  • Foreign contribution or funds accepted shall not threaten the life or safety of the public or receiver or should not lead to any illegal matter or offence.
Following are the non-eligible entities for applying for FCRA Registration
  • The applicant is sham or Benami.
  • An applicant who has been prosecuted or sham for any communal issues made in any location of the specified district or any area of the country
  • Applicant on whom the prosecution is carried on for indulging or doing any unfair or illegal activity
  • Is involved in any violent activities
  • Has applied foreign contribution or funds for any personal use
  • Any company that has been de-bared for receiving any foreign grant or foreign receipt as per any provision of law.
  • Public Interest
  • The sovereignty of India
  • Relationship with any state
Registration Process of FCRA License

The stepwise procedure involved in the Registration Process of FCRA License are as follows:

Apply online by entering all the needed information in the prescribed online form FC-3 which is available on the FCRA official website https://fcraonline.nic.in

Click the tab “FCRA Online Forms” to start the registration process under FCRA.

The applicant will be taken to the next page where several options are available such as foreign receipt intimation, application for attempting the permission from the central government, application for FCRA registration status, and so on.

Click on “Apply Online” option below the Application for FCRA Registration (FC-3)

If the applicant is a new user then he or she needs to sign up to enter the application form

Then fill the application form and complete all the mandatory information

After completing the application form, submit the form after which “User id” for the applicant will be generated automatically. Then the applicant has to login using the login credential which is generated automatically on the above step.

Fill the entire form, then scan and attach the needed documents in prescribed Format, generally PDF format.

Completion of the online FCRA registration will be complete after making online payment via online money transfer gateways.

Required Documents for FCRA registration process
  • Self-attested copy of incorporation certificate or COI of the entity, trust deed, or any other registered license or certificate that owned by such entity
  • PAN number of NGO
  • Copy of MOA & AOA of the entity and associations
  • Signature of the chief justice in the specified format
  • A detailed record or report on activities of the past three years.
  • Copy of financial statement audited by WEll-skilled and authorized CA, P&L account, details of Income-Expenditure, and statement on the cash flow of the company for the preceding three years.
  • The resolution passed by a governing body empowered by NGO
  • Certificate received as per the section 80G and 12A of Income Tax. According to the Income-tax Act, Section 80G and 12A gives tax exemption to all registered NGOs.

Renewal of FCRA License

The validity of FCRA registration remains for about five years, after which the owner can renew the license by applying for the FCRA License renewal. An entity or organization shall apply for renewal within the specified time period:
Minimum of six months prior to the date on which the FCRA license is getting expired. At least 12 months prior to the date on which the FCRA online registration expires, in cases, the organization is working on a multi-year deal or project.

Cancellation or Suspension of FCRA Registration

In case, if concerned authorities are in a view that registered organization is not functioning under the provisions of law and its license will be cancelled, in such situation, the concerned authority can issue the notice to the entity. Listed below are the few reasons in which cancellation of the license can be issued:

  • If NGO fails to follow the prescribed provisions of the Foreign Contribution (Regulation) Act.
  • If the organization fails to compile the annual return before the due date
  • In case any interrogation is made for any allegation enforced against the such entity for any illegal operations, and if such allegation can be proved as truth.
  • Foreign Contribution which is received is not utilized for the purpose of the main object of such organization neither for attaining the purpose mentioned during the FCRA registration process.

Frequently Asked Questions

FCRA registration is classified into two types: Proper Permission for FCRA registration Proper FCRA registration

After obtaining the receipt of FCRA License, the entity should file an annual return as prescribed in the form FC-4 online in their official website of https://fcraonline.nic.in. The compliance needed after the completion of FCRA Registration, includes

  • Copy of Income Statement
  • Copy of the Balance Sheet
  • Report or Statement of the foreign contribution receipt
  • Payments and expenditure obtained by an entity
FC-4 is the annual compliance is filed within 9 months from the end of the financial year, that is it can be filed before the 31st of December per year.
FCRA Registration once issued, it is valid for about five years and can be renewed by applying for the same between six months before the expiry date..
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