Societies, Charitable trusts, Section 8 Companies seeking foreign contribution or donation from foreign sources are required to obtain FCRA registration under Section 6(1) of Foreign Contribution Regulation Act, 2010.
FCRA registration is to be filed online and documents need to be submitted with Ministry of Home Affairs.
Our expert at unfolding tax will happy to help for FCRA Registration
Types of FCRA Registration
There are 2 kinds of FCRA certificates:
- Prior consent certification which is likely to occur after one year. Preceding authorization certificate is given to those NGOs who have completed a minimum of one year in running.
- A long-term certificate is for a period of 5 years. The NGO should be at least three years old. For this annual report of last 3 years, audit report, a copy of pan card, Bye-laws of the NGO are needed. After 5 years, FCRA certification needs to be renewed.
To get registration under the FCRA the applicant association need to be registered under any of the following Acts:
Charitable and Religious Trusts Act 1920
Companies Act 2013 (Section 8)
Societies Registration Act, 1860
Indian Trusts Act 1882
FCRA certification Specifies
- The person or group of persons who can participate and receive foreign contribution.
- The field or theme in respect of which the respective foreign contribution can be received.
The tasks or goals for which the same foreign contribution must be utilized.
It defines the individual sources from where the listed person or group of people can receive a foreign contribution under the foreign contribution regulation act.
Benefits of FCRA Registration
The NGO can approach different foreign financing companies after FCRA registration. Some of them are as follows
- British High Commission
- Japanese Embassy
Renewal of registration
Once FCRA registration is given, it remains valid for a period of five years. An appeal for renewing the FCRA registration needs to be made 6 months before the expiry date, to keep the validity of registration.
Application for FCRA registration in Form FC-3.
Self-certified proof copy of registration certificate/Trust deed etc of the association.
Self-certified copy of related pages of Memorandum of Association/ Article of Association that throws light on aim and objects of the association.
Activity Report that indicates details of activities during the past three years.
Copies of important audited statement of accounts for the previous three years (Income and Expenditure, Assets and Liabilities, Receipt and Payment) that clearly reflects the expense acquired on aims and objects of the association and on administrative expense.