Best FCRA Registration Eligibility & Application Process

FCRA Registration

Charitable Trusts, Societies, and Section 8 Companies that receive foreign contributions or donations from foreign sources must obtain registration under Section 6(1) of the Foreign Contribution Regulation Act, 2010. This registration, known as FCRA registration, is mandatory for organisations receiving such funds. In this article, we explore the process of obtaining FCRA registration in India.

 

Eligibility criteria for obtaining FCRA Registration:

Organisations engaged in definite cultural, social, economic, educational, or religious programs may seek FCRA registration or receive foreign contributions via the “prior permission” route. Preferably, the applicant for FCRA registration should be a Trust, Society, or Section 8 Company. The not-for-profit entity must have been operational for at least three years when applying for FCRA registration and should not have received any foreign contributions prior to that without government approval. Additionally, the organisation seeking registration should have spent a minimum of Rs.10,00,000/- over the past three years on its stated objectives, excluding administrative expenses. Audited statements of Income & Expenditure for the last three years, prepared by a Chartered Accountant, must be submitted to demonstrate compliance with the financial requirement.

For newly registered entities wishing to receive foreign contributions, approval for a specific activity, purpose, and source can be sought from the Ministry of Home Affairs through the Prior Permission (PP) method.

Criteria for the grant of FCRA Registration:

Upon submission of an FCRA application in the prescribed format, the following criteria are assessed before providing registration:

The applicant, whether a person or entity Must not be fictitious.

• Should not have been prosecuted or convicted for engaging in activities aimed at converting individuals from one religious faith to another through inducement or force, directly or indirectly;
• Should not have been prosecuted or convicted for inciting communal tension or disharmony in any specified district or any other part of the country;
• Should not have been found guilty of diverting or misusing its funds;
• Should not be involved in or likely to engage in the propagation of sedition or advocacy of violent methods to achieve its objectives;
• Should not intend to use foreign contributions for personal gain or divert them for undesirable purposes;
• Should not have contravened any provisions of the FCRA;
• Should not have been prohibited from accepting foreign contributions;
• In the case of an individual applicant, the individual should not have been convicted under any current law, nor should any prosecution for any offence be pending against them;
• In the case of an entity other than an individual, none of its directors or office bearers should have been convicted under any current law, nor should any prosecution for any offence be pending against them.

 

The entity or person’s acceptance of foreign contributions should not be likely to adversely affect:

• The sovereignty and integrity of India;
• The security, strategic, scientific, or economic interests of the State;
• Public interest;
• Freedom or fairness of elections to any Legislature;
• Friendly relations with any foreign State;
• Harmony between religious, racial, social, linguistic, regional groups, castes, or communities.

Acceptance of foreign contributions:

• Must not incite any offence.
• Must not endanger the life or physical safety of any person.

Applying for FCRA Registration:

To apply for FCRA registration, organisations must use Form FC-3. Along with the application, the following documents must be submitted:

• Self-certified copy of the registration certificate/Trust deed of the association.
• Self-certified copy of relevant pages of the Memorandum of Association/ Articles of Association showing the aims and objects of the association.
• Activity Report detailing activities conducted over the last three years.
• Copies of relevant audited statements of accounts for the past three years (Assets and Liabilities, Receipt and Payment, Income and Expenditure), clearly indicating expenditure on the association’s objectives and administrative expenses.

Once FCRA registration is granted, it remains valid for five years. Organisations must apply for renewal of FCRA registration six months before the expiry date to keep the registration valid.

Online FCRA Registration Process:

Step 1: Visit the FCRA online portal.

Step 2: Click on ‘FCRA online forms’ to initiate the registration process.

Step 3: On the next screen, select the “Application for FCRA Registration” link. This link will redirect you to the next page.

Step 4: Click on the “Click to apply online” button to proceed with the FC3 (Registration) application.

Step 5: To sign up for FCRA, select the sign-up option. The link will take you to the next page.

Step 6: Enter all required details and click on “Save.”

Step 7: Upon clicking “Save,” a message will appear on the screen stating “User ID successfully created, and Your user ID is:”

Step 8: Log into the portal using the provided User ID and password.

Step 9: Under the “I am applying for” option, select FCRA registration from the drop-down menu. Then click on “Apply online.”

Step 10: To process with registration, click on “Click here to Proceed New Registration.”

Step 11: tab on the FC3 Menu in the title bar to process with step-by-step registration.

Association Details:

Step 12: Choose “Association Details” from the menu. The association detail form will appear. Enter the following mandatory details:

• Darpan ID
• Address of Association
• Registration number
• Place of registration
• Date of registration
• Nature of association
• Main aim of the association

Step 13: Click on the submit button to save the data.

Executive Committee Form:

Step 14: Navigate to the Executive Committee Form by clicking on the “Executive Committee” option from the menu bar.

Step 16: Enter all details regarding the Executive Committee.

Step 17: Select “Add details of Key Functionary” to edit, delete, or add information about the Executive Committee.

Step 18: To include additional foreigner details, select the checkbox of the record you wish to add and click on the “Add/View” button.

Step 19: A new screen will appear where you can add relevant foreigner details. You can edit or delete records by selecting the appropriate option.

EC Detail and Others:

Step 20: Select “EC detail and others” from the menu list.

Step 21: After Filling all mandatory details of the EC, click on “Save.”

Bank Details:

Step 22: Required  your bank details, including Bank Name, IFSC code, Account Number, and Address of the bank.

Other Details Section:

Step 23: Click on the “Other Details” option from the menu to provide all other required information.

Upload Documents:

Step 24: Upload all relevant documents in PDF format.

Final Submission:

Step 25: Click on “Final Submission” from the menu bar. Declare the application form, enter the place and date, and click on “Final Submit.”

Step 26: Once you have submitted finally, a pop-up window will appear. Click on “OK.”

Note: After final submission, you can’t modify application details.

Online Payment:

Step 27: After clicking on the “Make Online Payment” button from the menu bar, the payment screen will be displayed.

Step 28: Click on the “Continue for Payment” button on this screen. A pop-up screen will appear. chooses the payment gateway and proceeds with the payment.

Renewal of FCRA Registration:

Once FCRA registration is granted, it remains valid for a period of five years. To maintain the validity of the registration, an application for renewal can be submitted six months prior to the expiry date.

Step 1: Choose “Application for Renewal of FCRA Registration” from the FCRA Online Forms section.

Step 2: Upon clicking on this option, the page will redirect to the next page. Select “Click to apply online.”

Step 3: Log in to the FCRA portal by filling your user ID and password.

Step 4: Under the “I am applying for” option, select FCRA renewal from the drop-down menu. Follow the steps outlined above (Steps 10 to 28) for renewing FCRA registration.

 

Sources : https://www.indiafilings.com/learn/fcra-registration-for-trusts-and-ngos/

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