FCRA Registration
FCRA is a short form of the Foreign Contribution Regulation Act that regulates and controls the foreign contributions taking place in India. The primary objective of FCRA Registration Online in India is to decriminalize the receipt of any foreign contribution by domestic organizations and for assuring the proper utilization of the funds for the assigned purpose.
Checklist for applying for FCRA Registration
• Following are the eligible companies that can apply for FCRA registration:
• Trust registered governed by the Indian Trust Act
• Societies registered governed by the Indian Society Registration Act
• Section-8 companies incorporated governed by the Companies Act
• The applicant must obtain the registered certificate as NPO found out having charitable aims and objectives for serving the society and therefore the locality by promoting the health, economic development, education, promotion of art, religion, culture, sports, and so on in that society
• The entity must not be forbidden in any form under the provision of the Foreign Contribution (Regulation) Act.
• Foreign contribution or funds accepted shall not threaten the life or safety of the public or receiver or should not lead to any illegal matter or offense.
Eligibility for obtaining FCRA Registration
Organizations seeking foreign contributions for definite cultural, social, economic, educational, or religious programs may obtain FCRA registration or receive foreign contribution through the “prior permission” route. It is preferable for an FCRA applicant to be a Trust or Society or a neighborhood 8 Company. The not-for-profit entity must have also been alive for a minimum of three years while making the FCRA application and will not have received any foreign contribution prior to that without the Government’s approval.
Additionally, the entity seeking registration should have spent at least Rs.10,00,000/- over the last three years on its aims and objects, excluding administrative expenditure. Statements of Income & Expenditure, duly audited by Chartered Accountant, for the last three years are to be submitted to substantiate that it meets the financial parameter.
In case a newly registered entity would like to receive foreign contributions, then approval for a specific activity, specific purpose, and from a specific source can be made to the Ministry of Home Affairs through the Prior Permission (PP) method.
Criteria for grant of FCRA Registration
• Once, an FCRA application is made in the prescribed format, the following criteria are check before providing registration.
• The ‘person’ or ‘entity’ making an application for registration or grant of prior permission-
• Is not fictitious or benami;
• Has not been prosecuted or convicted for indulging in activities aimed toward conversion through inducement or force, either directly or indirectly, from one religious faith to another;
• Has not been prosecuted or convicted for creating communal tension or disharmony in any specified district or the other a part of the country;
• Has not been found guilty of diversion or mis-utilization of its funds;
• Is not engaged or likely to engage in propagation of sedition or advocate violent methods to achieve its ends;
• Is not likely to use the foreign contribution for private gains or divert it for undesirable purposes;
• Has not contravened any of the provisions of this Act;
• Has not been prohibited from accepting foreign contribution;
• The person being an individual, such individual has neither been convicted under any law for the time being in force nor any prosecution for any offense is pending against him.
• The person being other than an individual, any of its directors or office bearers has neither been convicted under any law for the time being in force nor any prosecution for any offense is pending against him.
• The acceptance of foreign contribution by the entity/person is not likely to affect prejudicially –
• The sovereignty and integrity of India;
• The security, the strategic, scientific, or economic interest of the State;
• The public interest;
• Freedom or fairness of election to any Legislature;
• friendly relation with any foreign State;
• harmony between religious, racial, social, linguistic, regional groups, castes, or communities.
• The acceptance of foreign contribution-
• Shall not lead to incitement of an offense;
• Shall not endanger the life or physical safety of a person.
Online FCRA Registration process
The stepwise procedure involved within the Registration Process of FCRA License are as follows:
• Apply online by entering all the needed information in the prescribed online form FC-3 which is available on the FCRA official website https://fcraonline.nic.in
• Click the tab “FCRA Online Forms” to start the registration process under FCRA.
• The applicant will be taken to the next page where several options are available such as foreign receipt intimation, application for attempting the permission from the central government, application for FCRA registration process, and so on.
• Click on the “Apply Online” option below the appliance for FCRA Registration (FC-3)
• If the applicant is a new user then he or she needs to sign up to enter the application form
• Then fill the application form and complete all the mandatory information
• After completing the application form, submit the form after which “User id” for the applicant will be generated automatically. Then the applicant has to log in using the login credential which is generated automatically on the above step.
• Fill the entire form, then scan and attach the needed documents in the prescribed Format, generally PDF format.
• Completion of the FCRA Registration Online will be complete after making online payment via online money transfer gateways.