FCRA Registration

Humanity is on the rise, and people are developing a broader perspective on life, emphasizing social and environmental causes over mere business profits. Many organizations actively support these causes, often relying on public donations to fund their operations. These donations are not limited to India; organizations can also receive contributions from foreign sources, provided they comply with certain regulations. The Foreign Contribution Regulation Act (FCRA) of 2010 governs the receipt of foreign contributions for charitable and social purposes. Read on to understand the requirements of FCRA and to whom it applies.

What is FCRA Registration?

The Foreign Contribution Regulation Act of 2010 outlines the requirements for organizations to receive foreign contributions. There are two ways to comply: obtaining FCRA registration or securing prior permission before receiving any foreign funds. FCRA registration is valid for five years, while prior permission allows the receipt of foreign contributions for a specific purpose from a specific donor for a specific event.

The FCRA of 2010 was enacted with the following objectives:

1. Regulate the receipt and utilization of foreign contributions and hospitality by certain companies, associations, and individuals.
2. Prohibit the receipt and utilization of foreign contributions and hospitality by certain persons and for certain activities that are against national interests.

Organizations aiming to receive foreign contributions for specific social, cultural, economic, religious, and educational programs can obtain FCRA registration. They can also opt for prior permission to receive foreign contributions. The eligibility criteria for FCRA registration and prior permission are as follows:

Registration under FCRA:

1. The applicant must be registered under the Indian Trusts Act of 1882, the Societies Registration Act of 1860, as a Section 8 Company under the Companies Act of 2013, or any other applicable act.
2. The applicant must have conducted reasonable activities in their chosen field for the benefit of society.
3. The applicant must have spent at least Rs. 10 lakhs in the last three years towards achieving its objectives.
4. The applicant must submit copies of the audited financial statements for the last three years.

Prior Permission under FCRA:

Newly established organizations looking to receive foreign contributions can use the prior permission route, which authorizes the receipt of a specific amount for a specific purpose from a specific donor. To obtain prior permission:

1. The applicant must be registered under the Indian Trusts Act of 1882, the Societies Registration Act of 1860, as a Section 8 Company under the Companies Act of 2013, or any other applicable act.
2. Submit a commitment letter from the donor to the Ministry of Home Affairs indicating the amount and purpose of the contribution.
3. If the foreign donor organization and the Indian recipient organization share common members, prior permission will be granted under specific conditions:
   • The Chief Functionary of the Indian organization must not be part of the foreign donor organization.
   • At least 51% of the office bearers or governing body members of the Indian organization must not be members or employees of the donor organization.
4. If the foreign donor is an individual:
   • The donor cannot be the Chief Functionary of the Indian organization.
   • At least 51% of the office bearers or governing body members of the Indian organization must not be close relatives or family members of the foreign donor.

The application for FCRA Registration is made using Form FC-3A. The required documents include:

1. Self-certified copies of the trust deed or registration certificate of the organization or association.
2. Self-certified copies of the organization’s aims and objectives in the Memorandum of Association and Articles of Association.
3. An activity report indicating the activities conducted in the last three years.
4. Copies of the audited financial statements, including Receipts and Payments, Income and Expenditure, and Assets and Liabilities Accounts reflecting the expenditure towards the organization’s aims and objectives.

The application for FCRA registration is an online procedure. Follow these steps:

1. Visit the FCRA portal.
2. Click on the ‘Services under FCRA’ tab to access all relevant FCRA forms.
3. Click on Form FC-3A – ‘Application for FCRA Registration’. You will be redirected to the next page.
4. Click on ‘Click to apply online’. A new page will open. Click on ‘Sign Up’.
5. Enter the required details on the sign-up page.
6. Insert the captcha and click the ‘Save’ button. A message will appear: ‘User ID successfully created and your User ID is:’
7. Log in to the FCRA portal using this User ID and Password.
8. Select FCRA registration from the drop-down menu for ‘I am applying for’. Click on ‘Apply Online’.
9. Click on ‘Click here to Proceed New Registration’.
10. Click on the FC-3 tab and proceed with the registration.
11. Enter all necessary details in the Association Details form and click ‘Submit’.
12. Enter details about the Executive Committee in the Executive Form.
13. Add details of key functionaries and foreigners, if applicable.
14. Provide bank details, including Bank Name, Account Number, IFSC Code, and Bank Address.
15. Upload all required documents in PDF format.
16. Once the form is filled out, click on the Final Submission Button, provide the Place and Date, and click on the ‘Final Submit’ button. Confirm by clicking ‘OK’. Note that once submitted, the form cannot be modified.
17. Click on the ‘Make Online Payment’ button and complete the payment process.

FCRA Registration Renewal

FCRA registration is valid for five years, after which it must be renewed. The application for renewal should be made within six months before the certificate expires. Follow these steps for renewal:

1. Open the ‘Services under FCRA’ tab and select FC-3C – ‘Application for Renewal of FCRA Registration’. You will be redirected to the next page.
2. Click on ‘Click to Apply Online’. Enter your User-ID and Password to log in to the FCRA portal.
3. Select the FCRA renewal option from the drop-down menu for ‘I am applying for’. Follow the steps outlined above for the renewal process.