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.