FCRA Registration

Charitable Trusts, Section 8 Companies, Societies in India that receive foreign donations or contributions from foreign sources are required to get FCRA Registration under Section 6(1) of FCMA, 2010. The primary purpose of the Foreign Contribution Regulation Act, 2010 is to keep a check on foreign donations or contributions and after the enactment of this Act, the Government will prevent money laundering cases. Now all the association that gets overseas contribution or donation need to register under FCRA.

Types of Registration Under FCRA Act:

Normal Registration:

The applicant must be registered under:

• 1. The Indian Trust Act, 1882;
• 2. The Societies Registration Act, 1860;
• 3. Registered Section 8 Company under the Companies Act, 2013.

An applicant must have made appropriate contributions by undertaking activities in its elected field for the benefit of society;

Spent a minimum of Rs. 15 lakhs in the last 3 years towards achieving its objectives;

Submission of the financial statements of the last 3 years that are duly audited by qualified CA;

If a company is newly registered and likely to receive the foreign contribution, then approval can be made to the MHA (Ministry of Home Affairs) via the PP Method or Prior Permission Method.

For Prior Permission Registration

The Prior Permission method of FCRA Registration is ideally suited for organizations registered newly and would like to receive some foreign contributions. Such a Registration is granted for the receipt of a specific amount from any specific donor for carrying out the specific activities or projects.

The association is required to:

Be registered under the Indian Trusts Act, 1882, or the Societies Registration Act, 1860, or registered as a Section 8 Company as per the Companies Act, 2013, or any such other Act as may be required by the authorities.

Make a submission of a specific commitment letter from the donor to the Ministry of Home Affairs or MHA, which will indicate:

• 1. The amount of contribution given;
• 2. The Purpose for which such a contribution is proposed is to be given.

Where the Indian recipient organization and the foreign donor organization have common members, the following conditions need are to be met:

• 1. The Chief Functionary of an Indian organization cannot be part of the donor organization.
• 2. At least 51% of the members or office-bearers of the governing body of the Indian recipient organization should not be the employees or members of the foreign donor organization.

The case where the foreign donor is an individual:

• 1. He/she cannot be the Chief Functionary of an Indian organization.
• 2. At least 51% of the office bearers or members of the governing body of the recipient organization are required not to be the family members and close relatives of the donor.

Eligibility Criteria for FCRA Registration in India

The eligibility criteria for FCRA Registration in India are as follows:

Section 8 Companies must be registered under the Companies Act, 2013;

Societies incorporated under the Indian Society Registration Act;

Trust registered under the Indian Trust Act;

Foreign contribution or donation accepted by the Trust shall not risk the life/safety of any person or shall not result in any offence;

The entity or any company must not be prohibited in any form by the provision of the FCRA;

The NPO for Registration must have charitable objectives to serve the society by promoting education, promotion of art, culture, religion, sports, promoting education, etc.

Who are not eligible for FCRA Registration in India?

The entities that are entities are not allowed to be granted FCRA Registration in India are as follows:

The applicant is Benami or fictitious;

An applicant against whom prosecution is conducted for indulging in any unfair activity;

An applicant who has been prosecuted or convicted for any communal tension made in any area of a specified district or any other part of the country;

The entity is engaged in some violent activities;

The entity has utilized some foreign contributions for its personal use;

An entity is debarred from accepting any foreign receipt or foreign grant under any provision of the law;

Any such acceptance of the foreign grant that affects the entity prejudicially;

The sovereignty of India;

In the interest of the public;

The relationship with any state in India.

Documents required for FCRA Registration in India

The documents required for FCRA Registration in India are as follows:

Self-certified copy of the certificate of incorporation, trust deed, or any other relevant certificate held by such an entity;

PAN of the NGO;

Copy of Memorandum of Association (MoA) and Articles of Association (AoA) of institutions;

Signature of the chief judiciary in the JPG format;

A complete detailed report on the activities of the preceding 3 years;

Audited copy of the financial statement, Income-Expenditure details, P&L Account, and cash flow statement of the preceding 3 years;

Certified original copy of the resolution passed by the governing body authorized by the NGO;

Certificate obtained under Section 80G and 12A of Income Tax Act. Section 80G and 12A provide certain tax exemptions to the NGOs under the Income-tax Act of India.

Deliverables:

Depends on the compliances chosen.