Overview of FCRA Registration

FCRA (Foreign Contribution Regulation Act) registration is a legal requirement for organizations that wish to receive foreign donations or contributions in India. The Act ensures that foreign contributions do not adversely affect national interest and are used for legitimate purposes such as promoting charitable, cultural, educational, or social welfare activities. FCRA registration allows entities to accept foreign funds legally and ensures compliance with Indian laws.

Key Features of FCRA Registration

  1. Regulated Foreign Funding: Ensures foreign contributions are used for the intended charitable or social welfare purposes.
  2. Legality: Grants legal recognition to entities accepting foreign donations or assistance.
  3. Transparency: Registered entities must comply with strict reporting requirements, promoting transparency in foreign fund utilization.
  4. Government Oversight: The FCRA registration is governed and monitored by the Ministry of Home Affairs, ensuring proper usage of funds.
  5. Renewal: FCRA registration is valid for 5 years, with an option for renewal if the organization continues its activities.

Benefits of FCRA Registration

  1. Foreign Investment: Enables the organization to receive continuous support and investment from foreign entities.
  2. Compliance: Organizations that are FCRA registered ensure adherence to relevant regulations, preventing misuse of funds.
  3. Donations: Allows NGOs to legally accept foreign donations, thus widening funding sources for their activities.
  4. Government Support: Registered organizations are eligible for government grants, ensuring full-state assistance.
  5. Recognition: FCRA registration provides credibility, boosting the organization’s reputation in society and among donors.

Eligibility for FCRA Registration

To be eligible for FCRA registration, organizations must meet the following criteria:

  • Charitable Purpose: The organization must have a principal aim of charitable or social service, such as in health, education, arts, culture, etc.
  • Operational Experience: The organization should have been in operation for at least three years before applying.
  • Financial Statements: The organization must submit audited financial statements for the last three years.
  • Minimum Revenue: The organization should have received a minimum of ₹10 lakhs, excluding administrative costs, from Indian or foreign sources.
  • Registered Entity: The organization must be legally registered under relevant Acts like the Trusts Act of 1882, Companies Act 2013, or the Societies Registration Act.

Documents Required for FCRA Registration

  1. Certificate of Incorporation or trust registration.
  2. PAN Card of the organization.
  3. Copy of the Memorandum and Articles of Association or Trust Deed.
  4. Certificate under Section 12AB of the Income Tax Act (for tax exemption).
  5. Signature of the chief functionary.
  6. Resolution of the governing body authorizing the FCRA application.
  7. Activity Report for the last three years.
  8. Audited Financial Statements for the last three years.

Knowledge Base

Non-profit organizations, NGOs, trusts, and societies working in sectors like health, education, social welfare, arts, and culture are eligible for FCRA registration.

The process is online through the FCRA website. Applicants need to create an account, fill out the application form, upload necessary documents, and pay the registration fee.

FCRA registration is valid for 5 years. Renewal applications must be submitted at least 12 months before the registration expires.

If an organization has been engaged in continuous activities, it can apply for renewal at least 6 months before the expiry of the registration.

Non-compliance can lead to penalties, cancellation of registration, or disqualification from receiving foreign contributions.

No, only organizations with valid FCRA registration are allowed to legally accept foreign contributions in India.

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