Understanding FCRA Registration in India

_{Societal and environmental concerns have been in the limelight for quite a long time in the present world scenario. Business houses do not only focus on money-making as their sole agenda but are also involved in practices that uplift society and the environment.}

_{In the developing world scenario, where connectivity has brought countries closer ,furnace currency transactions are common. This continuous exchange of money coined the requirement of the Foreign Contribution Regulation Act, of 2010.Â}

_{What is FCRA?}

_{The Foreign Contribution Regulation Act, 2010 is a legislation for:}

1. _{Regulating foreign contribution: It regulates the receipt and utilization of foreign donations by any individual, association or company in India.}
2. _{National Safety: It disallows any foreign contribution that is utilized for activities detrimental to the national interest.}

_{Who Can Register for FCRA?}

_{There are two kinds of FCRA registrations:}

• _{Normal Registration}
• _{Prior Permission Registration}
• _{Normal Registration}

_{To be eligible for Normal Registration, an organization shall:}

1. _{Be registered: This may be under the Societies Registration Act, 1860, the Indian Trusts Act, 1882, or as a Section 8 Company under the Companies Act, 2013.}
2. _{Work toward the betterment of society: Organization should be involved in society-aiding activities.}
3. _{Have a financial history: In the last three years, it must have spent at least ₹10,00,000 on activities toward its social goals (excluding administrative costs). Financial statements for the past three years, should be duly audited by qualified Chartered Accountants need to be presented.}

• _{Prior Permission Registration}

_{This applies to newly registered organizations and their receipt of foreign contribution for specific purposes. For the same, an organization would need to:}

1. _{Be a registered entity: This may be under the Societies Registration Act, 1860, the Indian Trusts Act, 1882, or as a Section 8 Company under the Companies Act, 2013.}
2. _{A Letter of Commitment by Donor: The letter should specify the amount being contributed, the purpose of the contribution, and details of the donor.}

_{Documents to Be Attached for FCRA Registration}

_{In support of registration under FCRA, an association has to attach certain important documents in a particular format and size. These are as follows:Â}

1. _{Registration Certificate of Association: It shall be a PDF file, not exceeding 1 MB in size.}
2. _{Memorandum of Association/Trust Deed: The document showing the aims and objects of the association shall be attached as a PDF with a maximum size of 5 MB.}
3. _{Activity Report for the Last Three Years: The report mentioning activities taken up by the association in the last three years. It shall be in PDF format not exceeding 3 MB in size.}
4. _{Audited Statement of Accounts for the Last Three Years: It consists of a financial statement that has to be audited by a properly qualified Chartered Accountant. The scanned documents are to be submitted in PDF format with a maximum size of 5 MB.}
5. _{Affidavit of Each Key Functionary: The affidavit of each key functionary of the association. The maximum size of the PDF file shall not exceed 1 MB.}
6. _{Chief Functionary Signature: Image files of dimension 140 (Width) x 60 (Height) pixels and maximum size 50 KB.}
7. _{Association Seal: The seal should also be uploaded as an image file of the same size, 140 x 60 pixels.}

_{Ensuring the following documents are in the correct format and size is quite crucial for successful form submission.}

_{ÂHow to Apply for FCRA Registration?}

_{The step-by-step process for submitting an application form for FCRA registration is as follows:}

1. _{Visit the FCRA online portal.}
2. _{Choose the appropriate form: FC-3A for FCRA Registration and FC-3B for FCRA Prior Permission.}
3. _{New registration: Register and generate a username and password}
4. _{Login: Log in with the created username and password.}
5. _{FCRA Registration: Select from the drop-down FCRA Registration and click on “Apply Online”.}
6. _{Fill in the details: Open the FC-3 menu and fill in the association form with details like Darpan ID (optional), association address, registration number, registration date, nature of the association, and main objectives. Upload the required documents.}
7. _{Executive committee details: Fill in the details of key functionaries and save the information.}
8. _{Bank details: Bank name, account number, IFSC code, and bank address should be duly filled.}
9. _{Upload documents: Scan all the documents required to be attached to the application in PDF format and upload them.}
10. _{Final step: Mention place and date and click final submission. Then make the online payment to complete the application.}

_{Validity and Renewal}

_{After the registration has been granted, FCRA registration shall be valid for five years. The renewal application shall have to be made six months before the expiry of the validity of the certificate of registration.Â}

_{By following these steps, organizations can legally and effectively receive and utilize foreign contributions under the FCRA, 2010.Â}

_{ FAQs regarding FCRA Registration}

1. _{What is the purpose of the Foreign Contribution Regulation Act (FCRA), 2010?}

_{The FCRA, 2010, is a regulatory measure on the acceptance and utilization of foreign contribution or foreign hospitality availed of by any person, association, or company in India. It also ensures that such contributions are not used in ways that harm national interests.}

2. _{Who can get Normal Registration under FCRA?}

_{Organisations that can be registered under Normal Registration shall be registered either under the Societies Registration Act, 1860 the Indian Trusts Act, 1882, or as a Section 8 Company under the Companies Act, 2013. It shall have spent at least ₹10,00,000 on activities benefiting society in the last three years and attach audited financial statements for those years.Â}

3. _{What are the documents required for FCRA registration?}

_{Documents to be attached to the application form include the Registration Certificate of the Association, Memorandum of Association/Trust Deed, Activity Report for the last three years, Audited Statement of Accounts for the last three years, affidavits of each key functionary, the Chief Functionary’s signature, and the Association’s seal.}

4. _{How does Prior Permission Registration differ from Normal Registration?}

_{Prior Permission Registration is for newly registered organizations desirous of receiving foreign contributions for specific purposes. It requires a commitment letter from the donor and should satisfy additional conditions if there are common members between the Indian and foreign organizations.}

5. _{What is the period of validity of FCRA registration, and when is it to be renewed?}

_{FCRA registration is valid for five years. The organizations have to apply for renewal six months prior to the expiry date to continue receiving foreign contributions legally.}

_{ Also read: Pvt Ltd Company Registration with Vedkee Associates, Documents Required for Startup India Registration, Guide On GeM Portal Registration}