The Ministry of Home Affairs issues an FCRA registration to Non-Profit Organizations in India so they can regulate and observe the foreign donations received by NGOs in India. Moreover, FCRA stands for Foreign Contribution Regulation Act. To accept gifts from overseas, registered charities, charitable trusts, and Section 8 companies are required to register under the Foreign Contribution Regulation Act (FCRA).
When NGOs and charity trusts register with the FCRA, it facilitates the transfer of funds from outside sources into their FCRA account. Donations from foreign funding agencies are available to Indian nonprofits that help particular populations on a significant scale and are deemed necessary.
The Ministry of Home Affairs is in charge of the FCRA Department. For an NGO, trust, or Section 8 company, FCRA registration is optional.
The government has integrated all the rules and regulations pertaining to foreign contributions and hospitality that any individual, association, or business may accept. The Foreign Contribution (Regulation) Act of 2010 was passed with this goal in mind. This was done in order to use the e-governance of FCRA-related operations to develop a transparent framework for people and organizations. This open system was developed to deter any harmful actions that would go against the interests of the country.
There are two types of FCRA registrations, one is the normal or proper registration, and another is prior permission registration. Therefore, there are different eligibility criteria's for both the types of registration:
There are a few requirements to meet in order to be qualified for the normal registration:
The Prior Permission type is best suited for recently registered organizations that wish to accept contributions from outside. This is given in exchange for receiving a certain sum from a specified donor to carry out specified tasks or initiatives. The organization needs to:
The advantages of FCRA registration are mentioned below:
An association's ability to accept foreign donations for specific cultural, economic, educational, religious, or social projects is facilitated by FCRA registration, which removes all legal barriers.
Additionally, it aims to encourage more transparency in the ways that non-governmental organizations and other trusts supporting social causes raise and use foreign donations.
The government offers the NGOs that are registered under the FCRA substantial support with donations, capital gains, and income taxes waived.
Social workers can more accurately assess and determine the source of the money their clients receive due to the FCRA registration. It provides freedom to promote the well-being of society autonomy.
The government can stop the misappropriation of foreign funds with the use of FCRA registration. This aids in their ability to determine the actual nature of the donations that the organization has received and how it is being used to fulfill its stated purpose.
The documents listed below are necessary for FCRA registration.
The FCRA registration process is quite complex and it requires that the applicant possess thorough knowledge of the whole process. The following process is followed for getting the FCRA registration:
The first step is to visit the official webpage of the FCRA registration through the Ministry of Home Affairs.
Make a password and ID for your login. You must use your ID and password to access the FCRA website. Click on the new registration button to initiate the registration process of FCRA registration.
As required by your FCRA registration requirements, you will be required to fill the FC-3 form while mentioning the correct and complete details.
Upload the necessary documents in the format specified to complete the FCRA registration process. Verify that the submitted documents meet the specifications for size listed on the MHA portal. The application may be canceled if the format is improper.
Lastly, in order to register online for the FCRA, you must pay the requisite fees. Depending on the type of FCRA registration you wish to take, different government costs apply.
After everything is in order, you'll become registered under the FCRA and can receive donations from foreign countries.
FCRA registration fee set by the government is 10,000 rupees. This is the cost for registering under the Foreign Contribution Regulation Act.
You must submit an annual report to the Ministry of Home Affairs if you are a registered NGO or trust that accepts donations from foreign countries. If your total income from foreign sources during a financial year exceeds Rs. 1 crore, you will be required to file a return under FCRA.
For every fiscal year (April 1 till March 31), a return needs to be filed by December 31st or within nine months of the end of the year. The return, shall be filed in Form FC - 4, along with the statement of receipts and payments, and a certified balance sheet that must be prepared by a chartered accountant. You can easily file your annual returns using the online website of FCRA. The site is simple to use and navigate. You can also pay the requisite fees online while using the same site.
PSR Compliance can be your ideal partner for FCRA registration as we are committed to make the complex process of FCRA registration easy for you. Moreover, our team is able to do this, due to our experience in the same field, and we have served several clients till date. We make sure that the process gets completed on time and application procedure and accurate. For more details, get in touch with us today.
Yes, getting an FCRA registration is mandatory to receive foreign donations. Section 11 of the FCRA, 2010 states, that except as expressly specified in the Act, no person may collect foreign contributions, unless they first get a certificate of registration or prior authorization from the Central Government.
Receiving foreign donations without first registering with the FCRA is an offence. If you are found to violate any of the provisions outlined in the Foreign Contribution Registration Act, you might face a fine, and up to three years of imprisonment, or both.
The FCRA registration is valid for a limited period of five years. In accordance with the regulations, the renewal application must be filed no later than six months before to the certificate of registration's expiration date.
This is a time taking process, and generally take around 4 to 5 months to complete.
The renewal application must be filed in FC-3 six months before the FCRA certificate expires, along with the Rs. 10,000 Government fees. The form and all of the attachments must be submitted online.
Simply you can check FCRA registration status, go to the Ministry of Home Affairs website. Navigate to the FCRA section, log in with credentials, and search for your organization’s details to view the registration status.
FCRA registration is an authorization issued by the Ministry of Home Affairs, enabling specific organizations to accept and utilize foreign donations and hospitality. Governed by the Foreign Contribution (Regulation) Act (FCRA) of 2010, this regulation outlines the framework for managing and monitoring foreign contributions to ensure transparency and compliance with national interests.
If an organization runs a specific cultural, economic, educational, religious, or social program and wants to accept foreign donations, it must first obtain a registration certificate from the Central Government.