FCRA Registration - Eligibility and Application Procedure

FCRA stands for Foreign Contribution Regulation Act, 2010. The FCRA statute governs the receipt of donations or contributions from foreign entities towards causes of national or domestic associations or companies. The primary aim of enacting the FCRA was to ensure that it would maintain proper records and accountability structures concerning the receipt of foreign transfers and contributions.

Such measures would essentially be pivotal to ensure that the funds received through foreign contribution are channeled into the proper causes and prevent misappropriation of said contribution towards matters detrimental to the country’s interests. 

The entities receiving foreign contributions that are eligible for registration under the FCRA are:

  • Any entity registered under the Societies Registration Act, 1860, Indian Trusts Act, 1882, or similar statutes for defined beneficial causes is eligible. Additionally, Section 8 Companies, as per the Companies Act, 2013, would also be eligible for similar reasons.
  • Entities have contributed to helping society by investing in activities revolving around social causes. Further, the entities have to have directly spent at least ten lakh rupees towards such activities.
  • Entities need to furnish the previous 3 years’ financial audit reports, duly approved by a Chartered Accountant.

For Newly Registered Entities:

Entities that do not meet the three-year requirement for eligibility can also apply for FCRA under the Prior Permission Registration alternative. In addition to fulling the nature of the entity requirement, these applicants have to take certain additional steps. For instance, they need to submit a Ministry of Home Affairs issued Contribution letter reflecting the amount and purpose of the foreign contribution. Additionally, based on the composition of the entity, they are required to carry out other formalities. 

Requisite Documents:

  • Registration Certificate
  • Objectives and aims section reflected in the Memorandum of Association and Articles of Association.
  • A report showing the activities undertaken for the past 3 years.
  • Audited financial reports for the past 3 years. 

Process of Application:

  • The applicant needs to visit https://fcraonline.nic.in/home/fcra_onlineform.aspx website for FCRA registration.
  • The application needs to select the application form for registration. (Form FC-3A or Form FC 3B, as required).
  • The applicant needs to register a profile on the website and generate their credentials.
  • Upon logging into the profile using the credentials, the applicant will have to select FCRA registration from the options given in the list of applications.
  • The applicant should then click on the new registration icon.
  • The applicant needs to submit the form that is displayed for registration. The contents of this form include personal, technical details such as an address, name, and such as specific spaces for information like the entity's objective.
  • The applicant then has to provide all the details of the Executive Committee, wherein they can insert specific details about the key functionaries and save.
  • The applicant then has to specify the details of their banking system, including account details and branch details.
  • The applicant must upload all the requisite documents mentioned earlier in scanned form.
  • The applicant then needs to select the date along with the place.
  • Once all the details have been entered, the applicant must submit the form.
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