How to get FCRA registration certificate in India

Quick Summary

FCRA (Foreign Contribution Regulation Act) registration allows Indian NGOs to legally receive foreign donations. Firstly, the organization should be legally registered under a recognized act, like the Societies Registration Act, the Indian Trusts Act, or as a Section 8 company under the Companies Act. It should have been in existence and actively working for at least three years.  Provided by the Ministry of Home Affairs, this certificate is essential for transparency and compliance.

Overview

NGOs, trusts, and societies engaged in social, cultural, educational, or religious activities can apply. Eligibility requires the organization to be active for at least 3 years and have demonstrated financial activity. To be eligible for obtaining an FCRA registration certificate, an organization, such as an NGO, trust, or society, must meet certain criteria. Meeting these requirements demonstrates genuine commitment and operational credibility, which are essential for the Foreign Contribution Regulation Act (FCRA) authorities to grant the registration and allow the organization to legally receive foreign donations.

Exploring the process of obtaining an FCRA (Foreign Contribution Regulation Act) registration certificate can seem complex, but with the right guidance, it can be simplified. This detailed guide will walk you through the latest process, eligibility criteria, essential documents, and some quick tips to make your application successful.

What Is FCRA Registration?

FCRA registration is a mandatory credential issued by the Ministry of Home Affairs that authorizes Indian NGOs to accept foreign donations for their charitable, religious, social, or educational activities. Valid for five years, renewal is necessary to continue receiving foreign funds and maintain compliance. However, the Foreign Contribution Regulation Act, 2010 was enacted with a view to:-

• Regulate the acceptance and utilization of foreign contributions or foreign hospitality by certain individual associations or companies.
• Preventing foreign contributions for any activities unfavourable to national interest.

Eligibility for FCRA Registration

To be eligible for FCRA registration, your organization must meet a few key criteria that ensure it is genuinely dedicated to social welfare and aligned with legal standards.

Legal Structure

• Registered as a Society under the Societies Registration Act, 1860.
• Registered as a Trust under the Indian Trusts Act, 1882.
• Registered as a Section 8 Company under the Companies Act, 2013.

Operational History

• Must have been active for at least three years.
• Consistently engaged in social, charitable, educational, or cultural activities.

Financial Activity

• Spent a minimum of ₹10-15 lakhs over the last three years on core activities. This includes expenses directly related to your objectives, supported by audited financial statements.

Other Conditions

• Not involved in political activities or banned from accepting foreign contributions.
• Not prosecuted or convicted for activities like propagating sedition, religious conversions, misusing funds, or creating communal disharmony.

First, the organization should be legally registered as a Trust under the Indian  Meeting these eligibility requirements reflects the organization's credibility and operational maturity, which are crucial for the Ministry of Home Affairs to approve the FCRA registration, allowing the NGO to legally receive foreign contributions.

How to apply for FCRA Online?

Applying for FCRA registration online in India is a straightforward process if you follow the right steps.

Step 1: Register on the FCRA Portal

Visit the official FCRA online portal at fcraonline.nic.in and need to create a user account. Ensure all the details are accurate and kept safe, as you'll use these credentials throughout the application process.

Step 2: Obtain DARPAN ID

Register your NGO on the NITI Aayog’s DARPAN portal to get the DARPAN ID, which is a prerequisite for FCRA registration.

Step 3: Open a Designated FCRA Bank Account

You must open a separate FCRA account in the State Bank of India, New Delhi Main Branch, to receive all foreign contributions. You may also open additional accounts for specific purposes, like utilization.

Step 4: Fill and Submit Online Application

Log in to the portal, fill out Form FC-3 (for registration) or FC-3B (for renewal), and upload the necessary documents. Pay the application fee online, which is typically around ₹10,000.

Step 5: Upload Supporting Documents

Prepare scanned copies of essential documents, including:

• Registration certificate
• Memorandum and Articles of Association or Trust Deed
• Audited financial statements (last 3 years)
• Activity reports
• Identity proofs of key members
• DARPAN ID

Step 6: Submit and Track Your Application

After uploading, submit your application. The Ministry reviews it, which can take a few months. You can track the status online and respond promptly to any clarifications.

Step 7: Final Approval and Certification

Once approved, you'll receive your FCRA registration certificate, valid for five years. Remember, renewal applications must be submitted at least six months before expiry.

Tips:  For smooth registration, consider consulting a professional or expert agency specializing in FCRA registration, ensuring your application meets all legal requirements and deadlines.

Post-Registration Compliance

Obtaining your FCRA certificate is just the beginning. To maintain good standing:

• File annual returns (Form FC-4) electronically within nine months of the financial year.
• Maintain separate accounts for foreign contributions.
• Utilise the funds only for the approved activities.
• Ensure timely renewal of registration.

Failure to comply can lead to penalties or cancellation of your registration.

Note: Ministry reviews application (usually a few months).
On approval, the certificate is issued, valid for 5 years.

Requirements for Obtaining  FCRA Certification

To be eligible for the normal FCRA registration, there are a few requirements:

Filing accurate documents and adhering to deadlines ensures smooth FCRA registration. This process enables NGOs to legally receive foreign funding and maintain credibility and trust in their social work.

Quick Tips

• When applying for FCRA registration, it’s absolutely crucial to pay close attention to every detail to avoid delays or rejections.
•  Use only the latest and official forms provided on the FCRA portal (fcraonline.nic.in) to ensure compliance with current regulations.
•  If you want to ensure everything is perfect, consider consulting experienced professionals. 
• Keep your records well-organized and maintain all documentation carefully, as this helps during audits and future compliance checks. 

By following this comprehensive guide, your NGO can successfully secure the FCRA registration certificate and open doors to foreign funding, boosting your efforts in making a real difference. For detailed help,
Visit FCRA Portal or reach out to trusted legal advisors.

Conclusion

Applying for FCRA registration online in India is a straightforward process if you follow the right steps.  This financial activity must be supported by audited accounts and financial statements prepared by a qualified Chartered Accountant.

For smooth registration, consider consulting a professional or expert agency specializing in FCRA registration, ensuring your application meets all legal requirements and deadlines.

FAQ

Q1 Who is eligible for FCRA registration?
NGOs, trusts, and societies that are at least three years old and have a proven record of charitable activities can apply for FCRA registration to receive foreign funding.

Q2 How can I apply for an FCRA registration certificate?
You can apply online through the Ministry of Home Affairs (MHA) FCRA portal by submitting Form FC-3A along with required documents such as registration certificate, activity report, and audited financials.

Q3 What documents are required for FCRA registration?
Documents required include the NGO’s registration certificate, PAN card, audited financial statements for three years, list of executive committee members, and detailed activity report.

Q4 How long does it take to get FCRA registration?
The FCRA registration process usually takes 90 to 120 days, depending on the completeness of the application and verification by the MHA.

Q5 Is it mandatory for NGOs to have FCRA registration to receive foreign funds?
Yes, as per the FCRA Act, it is mandatory for NGOs to obtain FCRA registration or prior permission to legally receive foreign donations or contributions in India.