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Overview of FCRA Registration
FCRA is a short form of the Foreign Contribution Regulation Act that regulates and controls foreign contributions in India. The main goals of FCRA Registration Online in India are to ensure proper use of the money for the designated purpose and decriminalise the receipt of any foreign contributions by domestic organisations.
The Ministry of Home Affairs in India grants Non-Profit Organizations an FCRA registration permit, which allows them to keep track of donations from foreign sources. To accept donations from outside parties, Section 8 corporations, charitable trusts, and registered charities must register under the Foreign Contribution Regulation Act (FCRA). When NGOs and charitable trusts are registered with the FCRA, it becomes simpler for them to transfer funds from foreign sources into their FCRA account. Indian non-profits that serve specific populations extensively and are judged to need support can apply for donations from foreign funding agencies.
The Objective of FCRA 2010
The Foreign Contribution Regulation Act, 2010 was passed in order to:
- Control the acceptance and use of foreign hospitality or contributions by specific associations or businesses;
- Prohibit the acceptance and use of foreign hospitality or contributions for any kind of activity unfavourable to national interest and for matters related to or incidental to such activities.
Eligibility Criteria of FCRA Registration
NGOs must meet the following conditions to be eligible for FCRA Registration:
- Income or assets: The income or assets owned by NGOs should only be used for charitable purposes.
- Accurate Accounting: The NGO should maintain proper books of accounts that include all income and expenditures.
- Non-Discriminatory Purpose: The organization should not be founded to serve a specific religion, community, or caste. The main goal should be to advance charitable causes, and donations should account for the entirety of its funding.
- Operational Experience: The NGO should have been in operation for at least three years to qualify for FCRA registration.
Benefits of FCRA Registration
FCRA registration offers several advantages for non-profit organisations in India looking to receive foreign contributions for their programs. Some of these benefits include:
- Legal Recognition and Credibility: FCRA registration grants legal status, ensuring that the organization can accept foreign donations and is in compliance with national regulations.
- Access to Foreign Funding: Registered NGOs can access contributions from foreign individuals, agencies, and foundations, boosting their operational capacity.
- Increased Trust from Donors: Donors, both domestic and international, are more likely to trust an FCRA-registered organisation, ensuring that their donations are used responsibly.
- Tax Exemptions: FCRA-registered organisations are entitled to tax exemptions under the Income Tax Act, helping to redirect more funds toward charitable activities.
- Long-Term Sustainability: The ability to receive foreign funding improves an organisation's sustainability, particularly when domestic funding sources are limited or unstable.
What is a Foreign Source?
According to Section 2(1)(j) of the Financial Crimes Act of 2010, the following are considered foreign sources:
- Any foreign government and any agency thereof;
- Any international agency, excluding the United Nations or its specialized agencies, the World Bank, the International Monetary Fund, or any other agency designated by the Central Government;
- A corporation incorporated in a foreign country or territory;
- A multi-national corporation mentioned in subclause (iv);
- Companies as defined under the Companies Act, 1956, with more than half of the nominal value of share capital held by foreign nationals or foreign entities;
- Trade unions, foreign foundations, trusts, societies, or other associations established or registered outside India;
- Individuals or organizations that are nationals or legal entities of a foreign country.
These definitions clarify which foreign sources can contribute to Indian non-profits, ensuring transparency and regulatory compliance.
Documents Required for FCRA Registration in India
To register an NGO under the Foreign Contribution Regulation Act (FCRA), various documents are required depending on the type of registration. These documents ensure compliance with the Ministry of Home Affairs (MHA) and help facilitate the registration process. Below is a comprehensive list of the required documents for both normal and prior permission FCRA registrations:
Normal FCRA Registration
- Registration Certificate of Association: A certificate proving that the association or NGO is officially registered under applicable laws (e.g., Trust Deed, Society Registration Act).
- Memorandum of Association/Trust Deed: The document outlining the purpose, goals, and objectives of the NGO.
- Audited Statement of Accounts (last 3 years): The financial statements that have been audited by a qualified chartered accountant for the past three years, demonstrating the NGO's financial integrity.
- Activity Report (last 3 years): A detailed report of the NGO’s activities over the past three years, showcasing its impact and outreach.
- NGO Darpan ID from NITI Aayog Portal: The unique Darpan ID obtained by registering the NGO on the NITI Aayog portal.
- Aadhar Card of all the Office Bearers: A valid Aadhar card of each office bearer of the NGO, verifying their identity and Indian residency.
Prior Permission FCRA Registration
- Registration Certificate of Association: As with normal registration, a certificate showing that the NGO is legally registered.
- Memorandum of Association/Trust Deed: Similar to the normal registration, this document outlines the NGO’s goals.
- Darpan ID from NITI Aayog Portal: The Darpan ID obtained from NITI Aayog is required for verification.
- Aadhar Card of all the Office Bearers: Identity proof of the NGO’s office bearers.
- Letter of Commitment from the Donor Organization: A formal letter from the donor confirming the contribution to the NGO.
- Project Report for the Foreign Contribution: A report detailing the project(s) that will receive the foreign contribution.
Checklist of Documents to be Filed
The following paperwork must be submitted in order to complete the FCRA registration process:
- A properly completed Form FC-8 in triplicate.
- The last three years’ audited financial statements.
- An annual report detailing activities for the past five years.
- A description of the beneficiaries and the socioeconomic characteristics of the areas the NGO works in.
- A map of the states and districts where the NGO plans to operate.
- A certified copy of the Certificate of Registration.
- A certified copy of the Articles of Association, Memorandum, and By-laws (if applicable).
- A copy of the Income Tax Department’s certificate of registration or exemption under sections 80G and 12A.
- A copy of any prior authorisation given to the organisation.
- A copy of the governing body's resolution authorizing the FCRA application.
- A list of office holders and members of the NGO’s governing body.
- A copy of any journal or publication issued by the NGO.
- The Ministry of Home Affairs (MHA) file number and registration number of any parent or sister organisations under FCRA.
- The reference number for any prior applications submitted by the NGO.
- Details of any foreign contributions received, with or without prior approval from the Central Government.
It is important to note that the NGO bears the responsibility for obtaining registration under the FCRA. Therefore, all necessary formalities must be completed and FCRA registration must be obtained before accepting any foreign contributions.
Process of FCRA Registration in India
To register an NGO under the Foreign Contribution Regulation Act (FCRA) in India, you need to follow the step-by-step procedure outlined below. This ensures that your organisation can legally receive foreign contributions and comply with the FCRA 2010 regulations:
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Obtain DARPAN ID
The first step in the FCRA registration process is to register your organisation on the DARPAN portal of NITI Aayog and obtain a DARPAN ID. This ID is a prerequisite for FCRA registration.
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Go to the FCRA Online Portal
Visit the official FCRA online portal at fcraonline.nic.in to begin the registration process.
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Choose the Application Type
Select the appropriate application form for registration. Use Form FC-3A for regular FCRA registration and Form FC-3B for prior permission registration, depending on your requirements.
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Fill Out the FC-3 Form
After selecting the application type, log in to the FCRA portal and choose "Apply Online". Complete the FC-3 form by entering the necessary details, including your organisation’s information and the DARPAN ID.
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Provide Executive Committee Details
Fill in the Executive Committee details. This includes information about the key functionaries within your organisation. You can add, modify, or remove details as necessary.
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Enter Bank Account Details
Provide your NGO’s bank account details, such as the bank’s name, account number, IFSC code, and address. These details are necessary to receive foreign contributions.
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Upload Documents
Upload all required documents in PDF format. This may include:
- Registration Certificate of the NGO
- Memorandum of Association/Trust Deed
- Aadhar cards of office bearers
- Audited financial statements
- Other documents as mentioned on the FCRA portal
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Make Online Payment
Complete the online payment for processing the FCRA registration. Ensure that you do not make any changes to the form after this step, as the payment confirms your submission.
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Submit and Wait for Approval
After successful submission, the Ministry of Home Affairs (MHA) will review your application. If everything is in order, the FCRA registration will be granted, allowing your NGO to receive foreign contributions legally.
FCRA Compliance
- Maintaining Proper Records: Ensure that all funds received and disbursed are recorded accurately and are available for government review.
- Annual Reports: NGOs must submit yearly reports detailing the foreign contributions received and their utilisation, certified by a Chartered Accountant (CA).
- Utilisation of Foreign Contributions: Foreign contributions should only be used for the intended purposes as per the FCRA guidelines.
- Adhere to FCRA Provisions: Strict compliance with FCRA provisions is required to avoid cancellation of registration. Regular audits and updates are essential.
Penalties Under FCRA
Violation of FCRA provisions can result in significant penalties, including fines and imprisonment. It is crucial for NGOs to follow the regulations strictly to avoid these penalties.
Why Choose Kanakkupillai for FCRA Registration?
Kanakkupillai offers expert FCRA registration services to ensure your NGO’s compliance with all legal requirements. We provide the following services:
- Document Drafting: We help you draft and prepare all necessary documents for FCRA registration.
- Application Filing: We file your application on your behalf, ensuring timely and accurate submission.
- Registration Processing: We handle the entire registration process efficiently to secure your FCRA certification.
- Affordable Fees: We offer the lowest FCRA registration fees and ensure that you receive your registration as quickly as possible.
For smooth and hassle-free FCRA registration, contact Kanakkupillai today!
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