NGO - FCRA Registration in India: A Step By Step Guide

In India, FCRA registration is a legal requirement for institutions seeking to receive donations and funds abroad. FCRA's objective is to control the application and receipt of donations and funds in India and refrain from misusing detrimental activities for the nation's benefit.

FCRA, which stands for the Foreign Contribution Regulation Act, was introduced in the year 2010, and it is a very comprehensive act that deals with the receipt of foreign funds in India. However, under section 6 (1), any organization seeking to accept any donation from abroad needs permission from the Ministry of Home Affairs. Having expertise in this field, we assist with the FCRA registration process and ensure transparent and smooth procedures.

Eligibility Criteria for FCRA Registration

The non-governmental organizations engaged with the funds for the cultural, social, economic, educational, or religious programs are the potential FCRA Registrants. Candidates in an election, political parties, and their office bearers, anyone directly connected with a particular newspaper, judges, government, or any employee with the government or any entity controlled by the government apart from members of any legislature.

Required Documents for FCRA Registration

FCRA registration requires complete organization documents and ensures it is well–established, involved in legal activities, and financially stable. However, failure of this process may result in the rejection of an application.

♦ Chief judiciary impression

♦ NGO registration with PAN

♦ 12AB certificate from the Income Tax Department

♦ Incorporation certificate or trust deed

♦ Three years audited financial statement

♦ MOA and AOA documents

♦ Performance reports of 3 years

♦ Certification copies of governing body resolutions

Online Registration Process of FCRA

FCRA registration process can be efficiently completed by visiting its official website and following the steps given below:

1. Visit FCRA Platform

Browse through the official website of FCRA, managed by the Ministry of Home Affairs, and access the registration portal.

2. Sign Up for the FCRA Website

If you are a new member, create an account and click on the new or prior permission registration. After that, enter the required details for smooth communication.

3. Fill Up FC – 3 Form

Complete the form details as per your organization's requirements. There are different FCRA forms listed below:

Types of FCRA Registration Application Form

♦ FCRA Registration FC – 3A

♦ Prior Permission FC – 3B

♦ FCRA Renewal FC – 3C

♦ FCRA Annual Return Filing FC - 4

4. Upload the Documents

Upload all the documents of FCRA registration in the given format and ensure they are uploaded to the required size provided on the MHA portal. The wrong format might cancel the application.

5. Payment the Fees

After uploading the documents successfully, proceed to pay the necessary charges. However, ensure the payment mode is authorized and avoid further processing delays. When everything is in order, you will be registered under FCRA and start receiving donations smoothly.

6. Verification

After applying, it has to undergo a rigorous screening process and approval by the relevant authorities. They will also review the documents submitted together with information to check on the levels of compliance with FCRA regulations. If there are any deviations or if more information is needed, it will be provided to the organization.

7. Receive Acknowledgment

You will receive a confirmation page with the Application ID when you complete the application process. Please take note of this number, as it will serve as a reference number for your subsequent follow-ups and your application's progress.

8. Granting of the Registration Certificate under FCRA

Once the verification exercise is complete, the Ministry of Home Affairs shall issue an FCRA registration certificate. This certificate indicates that the organization is legally following the FCRA regulations to enable the organization to receive foreign contributions legally.

FCRA Registration Fees

An FCRA prior permission fee for the government is ₹5000, and fresh registration is ₹10,000. Additionally, NGOs seeking registration as a trust, society, or Section 8 company are required to pay a professional fee of ₹15,000 for the registration process.

FCRA Validity and Renewal

FCRA registration validity remains for 5 years and requires it to be renewed every year for receiving foreign donations. All NGOs are required to register for FCRA certification if they are receiving donations from abroad, and the certification must be renewed every 5 years. The renewal process ensures that NGOs continue to comply with Indian laws. After the tenure period ended, the organizations no longer received foreign contributions.

Pros of FCRA Registration

Any institution will secure the following advantages by availing of FCRA registration:

1. Government Support

FCRA registration is a government registration that is given by recognized authorities. So, the applicant will receive complete government support through this registration form.

2. Legal Protection

The government will offer complete support to organizations registered under FCRA. It will get tax exemption on capital gain, donations, and income.

3. Foreign Investments

FCRA registration assists organizations in receiving foreign donations for cultural, economic, educational, and social programs without government barriers.

Conclusion

It is availing FCRA registration a significant milestone for NGOs that helps create a positive impact through foreign contributions. By following these steps, the companies can navigate the FCRA registration process with transparency and confidence. So, staying updated with any alterations in FCRA regulations and availing professional guidance is vital.