Why register for FCRA registration?
FCRA is a short form of Foreign Contribution Regulation Act, that regulates and controlthe foreign contributions taking place in India. The primary objective of FCRA registration online in India is to decriminalize the receipt of foreign contribution by domestic Organization and for assuring proper utilization of the fund for assigned purpose.
Benefits of FCRA Registration
- Helps those organizations which work for the benefit and better of the public and are involved in the social work.
- If the organizations are registered under FCRA, it helps the organization lawfully in receiving foreign contributions or government aids.
- An entity registered under FCRA can receive donations from Foreign bodies.
Reason for cancellation of FCRA registration
- Non Filing of Annual Return in FORM FC-4
- Not working in Pubic Interest
- Not maintaining proper FCRA Account
- Utilization of Foreign Contribution for administrative purpose
- Acceptance of Foreign contribution in undisclosed bank account
- Making of false statement, declaration or delivering false accounts
Registration/Eligibility Requirement for FCRA Registration
Following are the said eligibility requirement of trade license:-
- The association should be registered under an existing statute like the Societies Registration Act, 1860 or the Indian Trusts Act, 1882 or Section 8 of Companies Act, 2013
- The Association should normally be in existence for at least three years and has undertaken reasonable activity in its chosen field for the benefit of the society for which the foreign contribution is proposed to be utilised.
- The entity seeking registration should have spent at least Rs.10,00,000/- over the last three years on its aims and objects, excluding administrative expenditure. Statements of Income & Expenditure, duly audited by Chartered Accountant, for the last three years are to be submitted to substantiate that it meets the financial parameter.
- Shall have an “FCRA Account.”
Procedure to obtain FCRA Registration
- 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
- The procedure for applying the application is completely online;
- 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.
Documents Required to obtain FCRA registration
- Self-certified copy of registration certificate/Trust deed etc., of the association
- Self-certified copy of Memorandum of Association/ Article of Association showing aim and objects of the association.
- Activity Report indicating details of activities during the last three years;
- Copies of relevant audited statement of accounts for the past three years (Assets and Liabilities, Receipt and Payment, Income and Expenditure) clearly reflecting expenditure incurred on aims and objects of the association and on administrative expenditure;
- PAN (Permanent Account Number) of the association
- (Foreign Contribution (Regulation) Act registration number and date (in case of renewal) – copy of certificate
- Amount of foreign contribution received during last three financial years:-
- Details of all office bearers or directors or other key functionaries of the person/association ( Name, Pan, aadhar, designation, contact no and mail id )
- Details of “FCRA Account” for receipt of foreign contribution
- Details of all utilisation bank accounts for utilisation of foreign contribution
Renewal of FCRA Registration
- Certificate of Registration is valid for five years from the date of grant. Further, An application for renewal of the certificate of registration shall be made to the Central Government in electronic form in Form FC-3C before 6 months from the date of validity of the certificate.
- Every person seeking renewal of the certificate of registration under section 16 of the Act shall open an FCRA Account and mention details of the account in his application for renewal of registration.
- Before seeking renewal of Registrations. The associations must have filed all previous ARs, Darpan ID and designated “FCRA Account” in SBI, Main Branch New Delhi. Filing of AR is mandatory for even ‘NIL’ FC receipt.