What is FCRA Registration?

• Stands for the Foreign Contribution Regulation Act.
• Governs and regulates foreign contributions
• Certificate issued by the Government Authority of India.
• Mandatory to acquire or receive any foreign contribution or foreign grants.
• Received by any registered trust, society, section 8 company, and NGOs.

Types of FCRA Registration

here are two types of FCRA Registration:

• Proper FCRA Registration
• Prior Permission FCRA Registration

FOR PROPER FCRA REGISTRATION

• The applicant must be registered under any of the following act:
• Societies Registration Act, 1860
• Indian Trust Act, 1882
• Companies Act, 1956
• Companies Act, 2013
• Must be operating for a minimum period of 5 years.
• In the last 3 financial years, spent a minimum of 10 Lakh rupees for the furtherance of its main objects excluding administrative expenditure.
• Submit Statements of Income & Expenditure along with audit reports of the last 3 financial years.

FOR PRIOR PERMISSION FCRA REGISTRATION

If you as a newly registered organization are willing to receive any kind of foreign contribution then apply for prior permission. At the time of making application must ensure:
Foreign owner
Funding is to be used for a specific purpose.
Amount of foreign contribution

Eligibility criteria for FCRA Registration:

• Trust / Society / Section 8 Companies registered under their specific Act.
• Charitable objectives for serving the society by promoting health, education, economic development, promotion of art, culture, religion, sports, etc
• Entity not prohibited under any of the provision of the FCRA Act
• Foreign contribution accepted shall not endanger the life or safety of any individual or shall not lead to any offense.

Required documents:

• Self-certified copy of incorporation certificate or trust deed of such entity.
• PAN of NGO
• Copy of MOA & AOA of NGO.
• Signature of the chief functionary in JPG format.
• Seal of Association
• A detailed report on activities of the preceding three years.
• Audited copy of the financial statement, Income-Expenditure details, receipt-payment, and cash flow statement of the preceding three years.
• CTC of the resolution passed by a governing body authorized by NGO.
• Certificate obtained under section 80G and 12A of Income Tax.
• Duly signed approval/commitment letter from the foreign contributor (In case of Prior Permission FCRA Registration)

Validity period:

For Proper FCRA registration:
5 years from the date of approval.
After 5 years required to be renewed for receiving any further foreign contribution.
For Prior Permission FCRA registration:
Till the date, the foreign contribution is fully utilized for which the prior permission was granted.

Furnish Return after FCRA Registration

Every registered entity under FCRA is required to file a quarterly return and annual return.

• Quarterly Return: File Intimation of Quarterly Receipt of Foreign Contribution by the associations within 15 days from the end of every quarter.
• Annual Return: FC-4 is required to be filed within 9 months of the closing of every financial year.

Time is taken for FCRA Registration: 4-6 months

• Renewal of FCRA Registration
• Submit application for renewal of FCRA Registration at least 6 months before the registration lapses.