FCRA - Foreign Contribution Regulation Act | FCRA Registration
What is FCRA Registration?
FCRA is the acronym for the Foreign Contribution Regulation Act. It is for all charitable trusts, societies, and Section 8 company that receives contributions and donations from foreign resource. The FCRA registration is done under the Foreign Contribution Regulation Act, of 2010.
Before obtaining or receiving any foreign contribution for any registered trust, social organization, or NGO, it is necessary to obtain the FCRA Registration certificate provided by the government authority.
- The utilization and acceptance of foreign contributions or foreign hospitality by reputable individuals, associations, or businesses should be balanced.
- It is forbidden to receive and use foreign hospitality or contributions for any actions that are against the interests of the country, as well as for matters that are connected to or incidental to those actions.
Advantages of FCRA registration
- Aid those organizations that are involved in social work for public benefit.
- Helps organizations legally in receiving foreign contributions or government succor.
- It allows the entity to receive donations or contributions from foreign bodies.
Who can Apply for FCRA Registration?
- Section 8 companies should be registered under the Companies Act to get FCRA registration.
- Registered trusts under the Indian Trust Act.
- Registered societies under the Indian Society Registration Act.
- The entity has three years of existence.
- The NGO must have charity goals in order to be registered, including serving society by advancing health, education, economic development, and the advancement of religion, sports, and other activities.
Required Document to obtain FCRA License
- Copy of Incorporation certificate, trust deed, or any certificate held by the entity.
- Copy of MOA and AOA.
- Non-profit organization particulars with PAN.
- Should have Darpan ID
- FCRA Bank account with SBI Main Branch, New Delhi
- Chief judiciary impression in JPG format.
- Activity report of the previous 3 years along with related photographs
- Audited copy of financial statement, P&L account, Income-Expenditure details, and cash flow statement of the preceding 3 years.
- Certified true copies of the resolution passed by a governing body authorized by a Non-profit organization.
- Certificate obtained under section 12 AB of the Income Tax Act.
FCRA Online Registration Process
- Visit FCRA Portal: To apply for FCRA registration, an individual must go to the online FCRA portal.
- Click on the forms: As it has different types of registration, the applicant must select the application like-
- The application for FCRA registration Form FC - 3A.
- Application for FCRA prior permission- Form FC- 3B.
- Create login ID: Click on apply online and create a user ID and password by selecting the sign-up option.
- Login Account: After creating a User ID and password the applicant will get the message for the same. After login, the applicant will get a message “I am applying for” from which the applicant has to choose the FCRA registration. After completing all these steps, the applicant must select “apply online” by which the applicant should select “proceed Registration”.
- Begin the registration process: Select the FC-3 menu from the menu bar to begin the registration.
- Fill in relevant details: The form must then be filled out and the necessary paperwork must be attached. Along with that, the following requirements must be met:
- From the menu bar, the candidate must choose The Executive Committee. The Executive Committee form will be filled out with the relevant information.
- By typing "Add details of Key Functionary," the applicant may add, delete, or change the information.
- Give Bank Details: After completing all the aforementioned procedures, the applicant must submit their bank details which include:
- Bank name.
- location of the bank.
- Account Number.
- IFSC code.
- Upload documents: The necessary paperwork must all be uploaded in PDF format. Additionally, the location and date of the final submission must be supplied.
- Payment: Making the online payment by clicking on the appropriate button is the last and next step. Additionally, no changes can be made after the payment has been made and the form has been submitted.
Reminder: After the government grants FCRA registration, the registration is good for Five years.
Penalty on the Violence of FCRA
A violation of the FCRA may result in any of the following penalties:-
- Confiscation and seizure of international contribution receipts.
- A fine of up to five times the amount of the foreign contribution.
- Examination and acquisition of accounts and documents
Renewal of FCRA License
Five years is the duration of the FCRA registration, which can be extended by submitting a renewal application. The following deadlines must be met by an entity when applying for renewal:
- At least six months before the license's expiration date.
- In circumstances when the entity is engaged in a multi-year project, at least 12 months prior to the date on which registration expires.
Cancellation of FCRA license
If authorities believe that a registered entity is not following the law's requirements and that its license should be revoked, they may do so by notifying the relevant entity. The few factors listed below can be taken into account while canceling the license:
NGOs do not abide by the Foreign Contribution (Regulation) Act's rules.
If the organization misses the deadline for submitting its annual report
Contributions collected are not used to accomplish the principal goal of the entity or the purpose claimed during FCRA, regardless of whether an investigation is conducted into any allegations placed against such an organization for any malfeasance in operations.
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Our Role in Obtaining the FCRA Registration
- Our consultants will educate you concerning each and every aspect of FCRA registration. Including how to get it.
- JR’s skilled consultants will assist you in filling out the application form for obtaining it.
- We will ensure a smooth procedure by ensuring proper documentation and evaluation.
- The professional consultants of JR Compliance will provide you with proper guidance during the registration procedure.
- In case of queries, we will provide you with the best possible solution for your concerns regarding FCRA registration.
To conclude, JR Compliance can assist you in obtaining FCRA approval by ensuring proper documentation, evaluation, testing, etc. Moreover, to make our client understand each aspect of it, we will educate you regarding the same.
Additionally, late document submission, or filling in false information in the application form can delay the process.
Thus, to avoid such inaccuracy contact our FCRA Registration Consultants and experienced team immediately for professional assistance and support in FCRA registration.