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:
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.
- 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)
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.