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overview of Fcra registration

overview of
Fcra registration

The Indian government passed the Foreign Contribution Regulation Act (FCRA) to control foreign donations received by Indian organizations and people. FCRA registration is a mandatory requirement for any organization or individual who wants to receive foreign contributions. The applicant must fulfil specific eligibility requirements and submit an application to the Ministry of Home Affairs together with necessary paperwork in order to obtain FCRA registration. Following registration, a person or organisation must follow to the FCRA's detailed reporting and accounting requirements. Penalties, registration cancellation, and other legal repercussions may follow noncompliance with FCRA laws.

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Benefits of fcra registration

The benefits of FCRA registration in India are as follows:

Eligibility for receiving foreign contributions:

Only organizations and individuals registered under FCRA can legally receive foreign contributions. FCRA registration allows an organization to access funds from foreign sources to carry out its activities.

Enhance credibility:

FCRA registration enhances the credibility of an organization, as it signifies that the organization has met the necessary legal requirements and is compliant with the laws of the land.

Tax benefits:

Organizations registered under FCRA are eligible for tax exemptions on foreign contributions received under certain conditions.

Access to international grants:

FCRA registered organizations can apply for international grants and funding opportunities from various sources.

Global recognition:

FCRA registration also provides global recognition to the organization, making it easier to collaborate and network with other organizations in the international community.

Expansion of reach:

FCRA registration allows an organization to expand its reach and impact by enabling it to work with international organizations and donors. It's important to note that while FCRA registration offers many benefits, it also comes with various compliance requirements and reporting obligations that must be fulfilled to maintain the registration.

FCRA Registration

Eligibility of FCRA Registration

To be eligible for FCRA registration in India, an organization must meet the following criteria:

1. The organization must be registered under the relevant Indian laws for a minimum of three years.
2. The organization must have a clear and definite social, cultural, economic, educational, or religious program.
3. The organization must have a proven track record of functioning in the chosen field of activity for at least three years.
4. The organization must have a functioning bank account in India.
5. The organization must not have been blacklisted or barred from receiving foreign funds by any government agency.
6. The organization must not have any political or religious affiliations.
7. The organization must have submitted its annual returns under the FCRA regulations in a timely and accurate manner.

Additionally, it's important to note that individuals, partnership firms, and proprietary firms are not eligible for FCRA registration. Only registered societies, trusts, and non-profit companies are eligible for FCRA registration in India.

Documents required for FCRA Registration

The following documents are required for FCRA registration in India:

• Copy of the registration certificate of the organization (society, trust, or non-profit company) under the relevant Indian laws.
• Copies of the Memorandum of Association (MOA) and Articles of Association (AOA) of the organization.
• Copies of the audited financial statements of the organization for the last three years.
• A detailed project report specifying the activities to be carried out using foreign contributions, along with a budget for the same.
• A bank certificate, duly signed by the bank, verifying the details of the organization's bank account, including the account number, name of the account holder, and address of the bank branch.
• A copy of the PAN (Permanent Account Number) card of the organization.
• A copy of the resolution passed by the organization's governing body authorizing the application for FCRA registration.
• Details of the key functionaries of the organization, including their names, addresses, and contact information.
• A declaration by the organization's chief functionary affirming that the organization has not been blacklisted or barred from receiving foreign funds.
• A signed undertaking by the organization agreeing to comply with the provisions of the Foreign Contribution (Regulation) Act (FCRA) and its regulations.

Procedure of fcra Registration

The procedure for FCRA registration in India involves the following steps:

Obtain the necessary documents: Compile all the paperwork needed to register with the FCRA, such as the registration certificate, the audited financial accounts, the project report, the bank certificate, and any other related papers.

Create an profile on the FCRA portal: Fill out the online application form after creating an account on the FCRA portal (https://fcraonline.nic.in/).

Upload the necessary documents: Upload all the necessary documents on the FCRA portal as per the specifications mentioned on the portal.

Payment of fees: Pay the requisite fees for the FCRA registration using the online payment gateway provided on the FCRA portal.

Submit the application: After uploading all the necessary documents and making the payment, submit the FCRA registration application online.

Verification of application:Once the application is submitted, the Ministry of Home Affairs (MHA) will verify the application and may request additional documents or information

Inspection of the organization: The MHA may conduct an inspection of the organization's premises to ensure that the organization meets the eligibility criteria for FCRA registration.

Issuance of registration certificate: If the MHA is satisfied with the application and the inspection report, it will issue an FCRA registration certificate to the organization. It is important to keep in mind that the FCRA registration procedure can take several months to complete, and that firms must adhere to certain reporting and accounting standards to keep their FCRA registration.

Penalty for violation of FCRA Registration

Organizations that accept foreign donations in India must follow by severe guidelines set per the Foreign Contribution (Regulation) Act (FCRA). Penalties may be assessed for any FCRA violations. which may include:

Fine: FCRA restrictions can result in fines of up to three times the amount of the foreign contribution received by the guilty organisation. or Rs. 5 lakh, whichever is higher.

Cancellation of registration : Serious breaches may result in the cancellation of the organization's FCRA registration and a ban on collecting contributions from outside. Criminal charges: Violations of FCRA regulations may also lead to criminal charges being filed against the organization and its key functionaries, which can result in imprisonment for up to five years.

Blacklisting: Organizations that violate FCRA regulations may be blacklisted, which can lead to difficulties in receiving foreign contributions in the future.

Types of Fcra registration

Under the Foreign Contribution (Regulation) Act (FCRA), there are two types of FCRA registrations that an organization can apply for:

FCRA Prior Permission: An organization that is not registered under FCRA Act can apply for FCRA Prior Permission. This permission is required before accepting any foreign contribution. The permission is valid for a specific purpose, activity or project, and a specific amount of foreign contribution for a period of up to six months.

FCRA Registration: An organization that is eligible under FCRA can apply for FCRA Registration. Once registered, the organization can receive foreign contributions for a period of five years. The registration must be renewed before the end of this period if the organization wishes to continue receiving foreign contributions. It's important to note that FCRA registration is not mandatory for all organizations. Only those organizations that meet the eligibility criteria specified under FCRA are eligible to apply for FCRA registration or FCRA Prior Permission.

PSR Compliance Assistance

There is no denying that securing Fcra Registration certification is an intricate affair that seeks adequate skill and a professional approach. Many mistakes occur in the documentation part that inherently leads to the cancellation of the Application. With PSR Compliance support at your disposal, you do not need to encounter such hassles. All you need to facilitate requested credentials and information to our expert, and you are good to go. Our experts will take care of all the formalities and ensure seamless delivery of Certification in a prompt time frame.

Frequently Asked Questions(FAQ's)

  • 01. What is FCRA?
    FCRA stands for Foreign Contribution (Regulation) Act. The Government of India passed a law to control how NGOs and other organizations in India may accept and make use of foreign contributions or donations.
  • 03. Who needs to register under FCRA?
    Any organization that wishes to receive foreign contributions or donations, including NGOs, trusts, societies, and other associations, must register under FCRA.
  • 05. What are the documents required for FCRA registration?
    The documents required for FCRA registration include the organization's registration certificate, PAN card, bank account details, audited financial statements for the last three years, and other relevant documents as per the requirements of the concerned authority.
  • 07. How to register under FCRA?
    To register under FCRA, the organization needs to apply online through the FCRA website and submit the required documents. The application is then reviewed by the Ministry of Home Affairs, Government of India, and if approved, the organization is granted an FCRA registration certificate.
  • 02. Is there any fee for FCRA registration?
    Yes, there is a registration fee for the FCRA, and it depends on the kind of organisation and how long the registration will last.
  • 04. What are the compliance requirements under FCRA?
    The compliance requirements under FCRA include maintaining proper records of foreign contributions received and their utilization, filing annual returns and audited statements of accounts, and complying with other provisions of the Act and rules notified by the Government of India.
  • 06. Can FCRA registered organizations receive contributions from any foreign source?
    No, FCRA registered organizations can only receive contributions from foreign sources that are on the list of authorized donors maintained by the Government of India.
  • 08. What is the penalty for non-compliance with FCRA provisions?
    The Act's provisions state that breaking the FCRA's rules could lead to your FCRA registration being canceled, the collection of any money you received from abroad, as well as additional penalties and legal action.

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