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FCRA Registration in India
Foreign donations play an essential role in funding various Non-Governmental Organizations (NGOs) and charitable entities across India. Between 2019 and 2022, NGOs registered in India received ₹55,449 crore in foreign donations. However, to maintain transparency and prevent the misuse of foreign funds, the Indian government mandates that organizations register under the Foreign Contribution (Regulation) Act, 2010 (FCRA). The registration process, conducted through the online FC-3A form, involves a detailed scrutiny of the entity's legal status, financial history, activities, and compliance record. A designated FCRA account must be opened with the State Bank of India, NDMB branch. Failure to comply with FCRA regulations can result in the cancellation of registration, penalties, or prosecution.
What is FCRA Registration?
The Foreign Contribution (Regulation) Act, 2010 (FCRA) is an act passed by the Parliament of India to regulate the acceptance and utilization of contributions from foreign sources or donations by individuals, associations, and organizations in India.
FCRA registration is the legal process by which non-governmental organizations (NGOs), charitable trusts, and certain other entities that wish to receive foreign contributions have to seek approval from the Ministry of Home Affairs (MHA) under the provisions of the FCRA, 2010.
Foreign Source
As per Section 2(j) of the FCRA, 2010, a foreign source includes:
1. Government of a foreign country
2. Agency of a foreign government
3. A company incorporated in a foreign country
4. A company incorporated under the Companies Act, 2013, whose more than half of the nominal value of its share capital is held by either of the following:
- The Government of a foreign country or territory
- The citizens of a foreign country or territory
- Corporations incorporated in a foreign country or territory
- Trusts, societies, or other associations of individuals formed or registered in a foreign country or territory;
- foreign company;
Why is FCRA Registration Important?
- FCRA registration is mandatory for organizations to accept foreign contributions legally
- FCRA registration requires organizations to maintain proper financial records and report the usage of foreign donations.
- FCRA ensures that funds are not used for illegal activities, political purposes, or anything contrary to national interests.
- FCRA registration opens doors for Indian organizations to collaborate with international organizations, governments, and foreign donors for various projects.
- FCRA mandates that organizations undergo regular audits, which ensure that they are operating with transparency.
- Non-compliance with FCRA can result in penalties, suspension of registration, or even the cancellation of the right to receive foreign funds.
Types of FCRA Registration
|
Regular FCRA Registration |
Prior Permission (PP) Registration |
|
|
Eligibility |
It is operational for at least 3 years |
It is operational for less than 3 years, project-specific |
|
Validity |
5 years (renewable) |
Specific to a project, there is no renewal option |
|
Type of Contribution |
Can receive foreign funds for any purpose |
Can only receive foreign funds for a specific project |
|
Annual Compliance |
Requires submission of annual returns and audits |
Requires separate approval for each fund received |
Who Needs FCRA Registration?
FCRA registration is required for specific types of organizations, which are:
- Non-Governmental Organizations (NGOs)
- Charitable Trusts
- Religious Organizations
- Religious Organizations
- Non-Profit Organizations
- Educational Institutions
- Healthcare Institutions
- Cultural or Social Organizations
- Other Entities with Charitable Objectives
- Foreign Entities Operating in India
Eligibility Criteria for Filing FC-3A (FCRA Registration)
Only the following categories of applicants are eligible to file Form FC-3A for the grant of registration under Section 11 of the Foreign Contribution (Regulation) Act, 2010:
1. Legally Registered Entity
The applicant must be registered under:
- The Societies Registration Act, 1860;
- The Indian Trusts Act, 1882; or
- The Companies Act, 2013 (as a Section 8 company)
2. Minimum 3 Years of Existence
The organization must have been in active existence for at least three years at the time of application.
3. Substantial Track Record of Activities
- The association must have undertaken reasonable activity in its chosen field (social, cultural, economic, educational, or religious).
- Supporting documents such as financial statements and activity reports for the past three financial years must be available.
4. Minimum Expenditure Requirement
The association must have incurred at least ₹10,00,000/- in the last three financial years towards its activities (excluding administrative expenses), and audited financial statements must provide evidence of the same.
5. Designated FCRA Account
The applicant must open a bank account exclusively for foreign contributions in the SBI New Delhi Main Branch (NDMB) as per FCRA (Amendment) Rules, 2020.
6. No Contravention History
The applicant or its office bearers should not have been convicted or prosecuted for any offence involving moral turpitude or for contravention of any provisions of FCRA or other laws.
7. No Prior Suspension/Blacklisting
The entity must not be blacklisted, debarred, or under investigation by any regulatory authority.
Process of FCRA Registration in India
Step 1: Visit the FCRA Online Portal
- Visit the Ministry of Home Affairs' FCRA portal at http://fcraonline.nic.in.
- On the homepage, click the link that reads “Click here to apply for any FCRA services.”
Step 2: Access the FC-3 Registration Form
- On the next page, select “Click here to apply for FC3 (Registration).”
Step 3: Sign up for a New Account
- Click on “Signup for new account.”
- Fill in accurate details to create your account.
- After successful signup, make a note of your user ID and password for future login.
Step 4: Log in to the Portal
- Use the generated credentials to log in.
- Once logged in, select “FCRA Registration” and then click on “Apply Online.”
Step 5: Read Instructions and Begin Registration
- On the next screen, click on “Click here for new registration.”
- It is advisable to read the on-screen instructions thoroughly before proceeding.
Step 6: Fill Association Details
- Go to the Association Details section.
- Fill in the required information and save the data.
Step 7: Fill in Executive Committee Details
- Click on the Executive Committee menu tab.
- Add the details of the Executive Committee members.
- If any member is a foreign national, click the checkbox beside their name and provide the required additional foreign details.
Step 8: EC Details and Other Information
- Move to the EC Details & Others tab.
- Fill in the required information and save the data.
Step 9: Provide Bank Account Details
- Click on the Bank Details tab.
- Enter the details of the designated FCRA bank account.
- Save the information after completion.
Step 10: Enter Other Relevant Details
- Proceed to the Other Details section.
- Fill in all necessary fields and click Save.
Step 11: Upload Supporting Documents
- Go to the Upload Documents tab.
- Browse and select the necessary files.
- Upload the documents to complete this section.
Step 12: Final Submission of Application
- Click on the Final Submit tab.
- Review the complete application in PDF format.
- Tick the declaration checkbox, enter the name of the place, and submit the application.
Note: Once the application is submitted, you will not be able to make any further modifications.
Step 13: Make Online Payment
- After final submission, proceed to the Online Payment section.
- Click on “Make Payment” to proceed.
- Complete the transaction using the available payment gateway.
- Ensure that your browser allows pop-ups to continue with payment processing.
Step 14: Print Application
- After successful payment, click on “Print Application” to retain a copy of your submission.
Why Choose Kanakkupillai for FCRA Registration?
FCRA registration is a highly regulated legal process that requires strict adherence to statutory guidelines and careful documentation. The process is daunting for many organizations, and in such cases, professional assistance becomes crucial. At Kanakkupiilai, we provide:
- Expert Legal Advisory: Kanakkupillai provides access to a team of professionals with expertise in FCRA, NGO compliance, and public trust governance.
- Comprehensive Documentation Assistance: From drafting the affidavit to compiling audited reports and declarations, we ensure every requirement is meticulously addressed.
- End-to-End Online Filing Support: Our experts guide you through portal registration, digital signature procurement, application filing, and payment gateway issues.
- Specialized Banking Coordination: We assist in opening and linking your FCRA-designated bank account with SBI NDMB, a mandatory compliance step.
- Real-Time Compliance Monitoring: With our dedicated monitoring services, you stay informed about deadlines, renewal requirements, and return filings.
- Tailored Solutions for NGOs: Whether you are a trust, society, or Section 8 company, our services are tailored to meet the specific needs of each entity.
Frequently Asked Questions
Who is eligible to apply for FCRA registration under Form FC-3A?
Any organization that is legally registered under the Societies Registration Act, 1860, the Indian Trusts Act, 1882, or as a Section 8 Company under the Companies Act, 2013, and has been actively functioning for at least three years with proven charitable activities amounting to ₹10,00,000 or more in the last three financial years, is eligible to apply under Form FC-3A.Can a newly formed NGO apply for FCRA registration?
No, a newly formed NGO is not eligible to apply for regular FCRA registration under Form FC-3A. Such organizations can only apply under the “Prior Permission” category for receiving foreign contributions for a specific project.Is it mandatory to have a bank account in SBI for FCRA?
Yes, it is mandatory to open a designated bank account exclusively for foreign contributions in the State Bank of India, New Delhi Main Branch (NDMB), as prescribed under Rule 17A of the Foreign Contribution (Regulation) Rules, 2011 (as amended in 2020).What kinds of contributions are covered by the FCRA?
Contributions, such as money, securities, or articles received from a foreign source, whether in cash, by check, through electronic transfer, or in kind, are within the scope of the FCRA and require compliance with the law for acceptance and use.Is the use of foreign funds restricted under FCRA?
Yes, the use of foreign funds is strictly regulated. These funds must be used only for the charitable, religious, social, cultural, or educational purposes for which they were received and must not be diverted for any political, speculative, or prohibited activity.What happens if an organization fails to file its annual FCRA returns?
If an organization fails to file its annual returns under FCRA within the stipulated timeframe, it may attract penalties, have its FCRA registration suspended, or even have its right to receive foreign funds permanently cancelled.Can foreign individuals donate without FCRA registration of the recipient?
No, even if the donor is an individual from a foreign country, the recipient organization must be registered under FCRA or must have obtained prior permission to receive and utilize such contributions legally.What documents are required along with the FC-3A application?
The application must be accompanied by documents, including the registration certificate of the organization, the Memorandum of Association or Trust Deed, audited financial statements for the past three years, a report of past activities, bank account details, a digital signature, and information regarding the Executive Committee members.Is a digital signature mandatory for FC-3A submission?
Yes, the Chief Functionary of the organization must obtain and use a valid Class II or Class III Digital Signature Certificate (DSC) to complete the online submission of the Form FC-3A on the FCRA portal.What is the validity period of FCRA registration once granted?
FCRA registration granted under Form FC-3A is valid for a period of five years from the date of approval, and the registration must be renewed before the expiry of the said period to continue receiving foreign contributions.What makes Us Different
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