Foreign Contribution Regulation Act or FCRA is defined as a law enacted by the Parliament to regulate foreign contribution that is provided by certain individuals or associations to NGOs. Any NGOs that take part in activities that are against the law will have their license cancelled, as per the rules of the act. This article will lay down some important measures, registration process and other details about FCRA.
Below mentioned are certain minimum requirements for Online FCRA Registration.
- The applicant must be a registered entity and must be operating for a minimum of 5 years.
- The applicant entity must have spent at least INR 10 Lakhs in the prior three years for the accomplishment of its main objects for which the entity was registered.
- The last three years financial statement must be audited by a qualified chartered accountant.
It is important to understand all rules regarding FCRA before filing for its application. Having a better understanding of the rules helps the individuals in several ways. These rules are mentioned for members of the organization and the authority expects the members to follow them.
Below mentioned are certain eligibility requirements:
- Organizations registered under Society Registration Act, 1860, the Companies Act, 1956, Bombay Public Trust Act, 1950 are considered eligible for registration.
- An organization that has a definite cultural, economic, educational, religious or social programme are permitted to accept foreign contribution but only after acquiring certificate of registration from the Central Government.
- An individual can accept foreign contribution even if it is not registered with the Central Government if he obtain prior permission from the Government
- Trust registered under the Indian Trust Act
- Societies registered under Indian Society Registration Act
- Section-8 companies incorporated under the Companies Act
FCRA Registration allows organizations to work with international bodies such as Oxfam, British High Commission, UNESCO, Infinity Foundation, Ford Foundation, Canadian High Commission, New Zealand High Commission, etc.
The registration process of FCRA consists of certain steps which will be discussed in this section:
- The application for FCRA Registration must be made using Form FC-3. The form is available on the website, fcraonline.nic.in.
- Select the option “FCRA Online forms”
- The individual, at this stage, must sign up for completing the application form.
- After filling up the form, he must save the application form
- All the required documents must be scanned and attached in PDF format.
- The last step is to submission of the registration fees.
Following are certain documents which are required to be submitted for the registration of FCRA (FC-3A):
- Registration Certificate of Association
- Memorandum of Association / Trust Deed and Articles of Association
- Activity Report of the last 3 years.
- Audited Statement of accounts for the last 3 years
- PAN card of NGO
- Signature of the chief judiciary in JPG format
FCRA Registration has a validity of five years. It must be renewed after the completion of five years:
The application for renewal can be filled in any of the following ways:
- At least six months before the date of the license expiry.
- At least 12 months before the date when registration expires
Documents required at the time of renewal are as follows:
- Registration Certificate of Association
- Memorandum of Association mentioning all company details or Trust deed
- FCRA Registration Certificate of association which is issued by MHA
Below mentioned are certain documents required to be uploaded:
- Registration Certificate of Association.
- Memorandum of Association or Trust Deed.
- Commitment Letter from the company and an agreement that states all the company details.
- Project Report for which foreign contribution will be received.
- An individual who is granted Registration/Prior Permission will receive Foreign Contribution in a single account.
- The individual is permitted to open multiple accounts in multiple banks for utilizing the Foreign Contribution that is received by him.
- These bank accounts are opened only for Foreign Contribution purposes. No other amount will be received or deposited in these accounts.
On 7th March, 2019, Ministry of Home Affairs announced some changes in the FCRA.
- As per Rule 2 “Bank Account” is now defined as ‘a bank account in a core banking compliant bank, integrated with the Public Financial Management System (PFMS)”’.
- Previously, there was only one online Form “FC-3” through which registration, Prior Permission or Renewal was undertaken. However, Form FC-3 has now been further divided into three different online forms.
- As per Rule, application for Registration under FCRA is required to be made online in Form FC-3A, application to obtain Prior Permission must be undertaken online in Form FC-3B and application for Renewal is required to made online in Form FC-3C.
- The fees for processing application for Prior Permission has been increased from INR 1,000 to INR 3,000, fees for Registration has been increased from INR 2,000 to INR INR 5,000 and fees for Renewal from INR 500 to INR 1,500.
- The duration for requesting for renewal has been extended from four months after expiry of the certificate of registration to one year. But a late fee charge of INR 5,000 will be charged by the authority.
- The general rule for submission of renewal of the certificate of Registration is from one year to a minimum period of six months before the date of expiry of the Registration Certificate.
- In Form FC-4 “details of foreigners as key functionary /associated” and “details of land and buildings remaining unutilized for more than two years” must be mentioned.
- Previously, there was only one Form, “FC-6” for recording any amendment in matters such as bank account, utilization account, name, address, objectives and members.
MHA has introduced five different forms for every change:
- Form FC-6A for change of name / address within the State
- Form FC-6B for change of nature, aims and objects and registration with local/relevant authorities in respect of the association
- Form FC-6C for change of designated FC utilization bank account
- Form FC-6D for opening additional FC-utilization account
- Form FC-6E for change in key members.
The supervision of foreign contribution is a very important factor for the country. Any activity that seems suspicious or which violates the laws must be suspended by the concerned authority. Unusual activities related to finances are a common factor that prevails all around the world. Thus keeping an eye on the transactions is necessary.
Related Services:
Online NGO Registration | Online Trust Registration | Section 8 Company Registration Online | Public Limited Company Registration
