Foreign contribution has been defined in Section 2(1)(h) of FCRA, 2010. However, foreign contribution excludes earnings from foreign client(s) by an association in lieu of goods sold or services rendered by it as this is a transaction of commercial nature.
We are counted among the dependable providers of Foreign Contribution Regulation Act Registration Services based in India. As part of our 'Online Services' we provide the services to register the Non-Governmental and Non Profitable organization under section 6 of Foreign Contribution Regulation Act in India.
Hassle Free FCRA Registration
DOCUMENTS REQUIRED FOR FCRA REGISTRATION
- Copy of PAN of the Society/Trust
- Audited Balance Sheet, Profit& Loss Account or Income& Expenditure Account for the latest year and all preceding years
- Copies Annual Report specifying activities of the association or institution during since its inception.
- Certified copy of formation documents like trust deed, rules & regulation, memorandum of association etc. and registration certificate, if any
- Copy of resolution of Governing Body of the organization, authorizing the registration under FCRA.
- If the association has received any foreign contribution with or without the prior approval of the Central Government, then the detail should be given.
- If the association or institution is notified under section10(23)(C) or is approved for the purposes of section 80Gthe particulars of such approval granted
- Bank Details (Bank Name, Account No. and Bank Address)
- List of governing body (Name, Father’s Name, Occupation, Designation and Address)
- Name of the Chief functionary and his Mobile Number
- Telephone Number of the office
- If the association is having any parent or sister or subsidiary organization, which is registered under the FCRA then the registration number along with Ministry of Home
- Affairs file number should be mentioned.
- If the association has submitted any application earlier then its reference number should be mentioned.
- Copy of any Journal or other publication of the organization.
- Undertaking letter from the chief functionary of organization.
- Such other information as the association or institution may like to place
Additional documents required for Prior Permission Registration Under FCRA
- Details of the beneficiaries and details of the project for which foreign contribution is expected. The detail should include narrative as well as financial details.
- Letter of commitment from the foreign donor agreeing in principle to provide funds.
Simple Steps To FCRA Registration!
Completion Time: As Estimated 120-180 Days after getting the complete Document set
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Frequently Ask Questions (FAQs) on Foreign Contribution Regulation Act
As defined in Section 3(1) of FCRA, 2010, foreign contribution cannot be accepted by any
For grant of registration, the association should:
(i) be registered under the Societies Registration Act, 1860 or the Indian Trusts Act, 1882 or section 25 of the Companies Act, 1956;
(ii) normally be in existence for at least three years and has undertaken reasonable activity in its chosen field for the benefit of the society for which the foreign contribution is proposed to be utilized. For this purpose, the association should have spent at least Rs. 6,00,000 over last three years on its activities, excluding administrative expenditure. Statement of Income & Expenditure duly audited by Chartered Accountant for last three years may be enclosed to substantiate that it meets the financial parameter.
)(iii) Meet the following conditions:
- The person making an application for registration or grant of prior permission under subsection(1),Sec. 12 (4) (a)(1) is not fictitious or benami;
- has not been prosecuted or convicted for indulging in activities aimed at conversion through inducement or force, either directly or indirectly, from one religious faith to another;
- has not been prosecuted or convicted for creating communal tension or disharmony in any specified district or any other part of the country;
- has not been found guilty of diversion or misutilisation of its funds;
- is not engaged or likely to engage in propagation of sedition or advocate violent methods to achieve its ends;
- is not likely to use the foreign contribution for personal gains or divert it for undesirable purposes;
- has not contravened any of the provisions of this Act;
- has not been prohibited from accepting foreign contribution; (9) the person and/or any of its directors or office bearers has neither been convicted under any law for the time being in force nor any prosecution forany offence is pending against him.
(iv) the acceptance of foreign contribution by the association/ person is not likely to affect pre judicially –
- the sovereignty and integrity of India; or
- the security, strategic, scientific or economic interest of the State; or
- the public interest; or
- freedom or fairness of election to any Legislature; or
- friendly relation with any foreign State; or
- harmony between religious, racial, social, linguistic, regional groups,castes or communities.
(v) the acceptance of foreign contribution
- shall not lead to incitement of an offence;
- shall not endanger the life or physical safety of any person.
Two ways of registration under FCRA
An Organization in formative stage is not eligible for registration. Such Organization may apply for grant of prior permission under the law. Prior permission is granted for receipt of specific amount from specific donor for carrying out specific activities/projects. For this purpose, the association should:
- (i) be registered under the Societies Registration Act, 1860 or the Indian Trusts Act, 1882 or section 25 of the Companies Act, 1956; (ii) Submit a specific commitment letter from the donor; and
- (iii) Submit copy of a reasonable project for the benefit of the society for which the foreign contribution is proposed to be utilised.
- (iv) Should meet all the conditions for the grant of registration.
As per rule 8(1)(a), account has to be maintained for foreign contribution received in kind. Form FC-6 provides the format for recording the receipt as well as the utilisation of contributions received in kind. The entries made in FC-6 should correspond with entries made in Form FC-3.
No, FCRA does not impose any particular method of accounting. But it does have certain specific reporting requirements, which have to be complied diligently.
No. Foreign contribution cannot be deposited or utilized from the bank account being used for domestic funds.
Yes. Any amount received from 'foreign source' in rupees or foreigncurrency is construed as 'foreign contribution' under law. Such transaction even in rupees term are considered foreign contribution.
Yes. When an application is filed online, a printout of the same may betaken after submission and thereafter, it should be submitted, duly signed,along with the requisite documents to the Ministry of Home Affairs. Theprescribed forms for submission of application for grant of Registration andPrior Permission are FC3 and FC4 respectively.
NGO’s receiving foreign contributions should guard against violating the provisions of FCRA. The following are a few common offences, which aresubject to severe penalty and punishment:
- I. NGO’s accepting foreign contribution without registration or prior permission.
- II. NGO’s having FCRA registration but receiving foreign contribution in different bank accounts.
- III. NGO’s having FCRA registration and not filing annual return in prescribed Form.
- IV. NGO’s having FCRA registration filing false information in the annual return.
- V. NGO’s with FCRA registration or prior permission not maintaining the required books of account.
- VI. NGO’s receiving foreign contribution on behalf of other NGO’s not having FCRA registration.
- VII. Not filing nil return in the year when foreign contribution is received.
- VIII. Diversion of funds for the purposes other than for which they were received.
- IX. Not maintaining the separate books of account
- X. Mixing of Local funds with foreign funds.
The provisions of the Code of Criminal Procedure, 1973 shall apply in so far as they are not inconsistent with the provisions of this Act to all seizures made under this Act Persons liable for punishments under FCRA The following persons may be liable to penalties and punishments depending on the nature of the offences:
- NGO Chief Functionary
- Governing body members
- Other officers
- Other persons who indulge
To sum up the discussions: Violation of FCRA can attract severe penalties which could be as under :
- (a) Seizure and confiscation of foreign contribution receipts.
- (b) Fine upto 5 times the value of the foreign contribution spent.
- (c) Inspection and seizure of accounts and records.
- (d) Compulsory prior permission requirement even if the NGO is registered under FCRA.
- (e) Imprisonment upto 5 years and/or fine.
- (f) Prohibition on accepting foreign contribution for 3 years for persons convicted twice.