Under Section 6 of Foreign Contribution Regulation Act, 2010, it is provided that any organization having a definite cultural / social / educational / religious / economic object shall accept foreign contribution / donations only after getting FCRA Registration.
Benefits of FCRA Registration in India
- An entity registered under the system of FCRA Registration would hold a good reputation in the society.
- FCRA Registration helps those organizations which work for the benefit and better of the public and are involved in the social work.
- The FCRA Registrations helps the organization to receive lawfully the foreign contribution and government aids.
- The applicant may get the benefit of having full government support as FCRA Registration is a Government Registration and is prescribed by the regulatory authority.
- An entity registered under FCRA can receive donations from foreign bodies as well as continuous support and investment from entities.
Pre-requisites of FCRA Registration Online
- The Organization needs to be a duly registered organization for charitable purposes.
- The Non-Profit Organization should have active existence for the last 3 years.
- The Organization must be registered under the NGO Darpan Registration.
- The organization must agree to receive foreign contributions only through one specific bank account.
Points to be considered for FCRA Registration
- For getting Proper FCRA Registration, the applicant must be registered and operating as an NGO for a minimum period of 5 years.
- The Non-Profit Organization must have spent minimum 10 Lakh rupees in the last 3 years for furtherance of its main objects.
- The applicant is also required to submit the financial statements for last 3 years. Further, these financial statements must be audited by a qualified practicing Chartered Accountant.
- For FCRA Registration, Form FC-3A needs to be filed.
- The FCRA Registration in normal course is valid for a period of 5 years from the date of approval.
- After the expiry of this period of 5 years, it is required to be renewed for receiving any further foreign contributions.
- On the other hand, if a newly registered Non-Profit Organization is willing to receive any sort of foreign contribution, then it can apply for Prior Permission Registration.
- The Prior Permission Registration must be done for the funds that are to be used for a specific purpose only.
- For FCRA Registration for Prior Permission, Form FC-3B needs to be filed.
- The Prior Permission FCRA Registration shall be valid for 5 years from the date of approval or
- Till the date when the foreign contribution is fully utilized for which the prior permission was granted, whichever is earlier.
- Once the FCRA Registration in India is granted it would be valid for 5 years.
- Renewal application of the FCRA Registration in India is required to be made 6 months prior to the date of the expiry of the FCRA Registration.
- For FCRA Registration for Prior Permission, Form FC-3C needs to be filed.
Process of FCRA Registration
- Login to online portal of FCRA
- Click on the Form FC – 3A (Application for FCRA Registration) or Form FC – 3B (Application for FCRA Prior Permission), as the case may be.
- The page will appear Apply Online Option. Select the “Apply Online” option and create a username and password by clicking on “Sign Up”.
- Select FC-3 menu and start the registration process.
- Follow the steps, upload the documents in PDF and enter the details of the bank.
- The final step is to pay the online fees.