Overview of FCRA Registration

There are institutions called Non Government Organizations which mainly include societies, trusts and section 8 companies in India. Such organizations are working with non profit motives. Their key source of income is money donated by individuals or organizations. Such groups got funds from the nation itself as well as abroad. In order to get money from abroad they have to comply with the Foreign Contribution Regulation Act which came in 2010. As per this law all those non profitable organizations which are getting money from abroad need to register and this registration is called FCRA Registration. One cannot obtain money from abroad legally without this registration. Hence all such non profitable organizations who are expecting money from abroad must get this registration as soon as possible. But always keep in mind that obtaining this registration is not a child's play, hence must take help of experts like whizseed who are having experience in their respective field. 

Understanding of FCRA Registration in India 

Registration of any non profit making organization like trust, society or section 8 company with FCRA under the FCRA of 2010, is called FCRA Registration in India. The key purpose of this registration is to provide safeguard to the nation against any kind of threat which may come with the foreign money that has been donated to such organizations. In order to maintain transparency and security FCRA wants all such organizations which are getting foreign money in the form of charity or donation to register themselves under the FCRA of 2010. 

Types of FCRA Registration in India

Mainly there are two types of FCRA registration which are given below: 

• Regular FCRA Registration 

The regular registration process for FCRA in India requires organizations to have been operational for a certain period and meet specified financial criteria. They must submit Form FC-3A along with other essential details to the Ministry of Home Affairs. This process typically takes 90-120 days for the application to be processed, but it could take longer if additional information is requested. The Ministry conducts background checks and ultimately approves or rejects the application based on compliance with FCRA regulations.

• Prior Permission Registration

If an organization wants to receive funds from a specific donor for a particular project under FCRA in India, it can apply for prior permission instead of full registration. This process involves submitting detailed information about the donor and the specific project through Form FC-4 to the Ministry of Home Affairs (MHA). The MHA reviews this information over 60-90 days to ensure everything meets their criteria. If they are satisfied, they grant approval for the funds to be received. This process is similar to regular registration but is specifically for receiving funds for a defined project from a specific donor.

Eligibility Criteria to Obtain FCRA Registration in India

Only those who are eligible to get this FCRA can obtain its registration. Some of the key eligibility criteria are given below: 

• Preferably Trusts, Societies, or Section 8 Companies should apply.
• Entity must exist for at least three years to apply for FCRA.
• No foreign contributions without government approval.
• Entity should have spent Rs. 10,00,000 over last three years on objectives, excluding admin costs.
• Organizations can get foreign contributions via FCRA registration or "prior permission."
• Audited Income & Expenditure statements needed for FCRA application.
• New entities can seek Prior Permission (PP) for specific foreign contributions.
• FCRA for broader authorization; prior permission for specific activities.
• Compliance ensures transparency and accountability.
• FCRA approval required for legal receipt of foreign contributions.

Criteria for Granting FCRA Registration in India

Once the application for the registration of the FCRA or for prior permission has been submitted before the authorities then they will check the following before granting the registration or permission to the applicant: 

Individual or Organisation Making Application of Registration or PP

• Not fictitious or benami (in someone else's name).
• Not likely to use foreign contributions for personal gain or undesirable purposes.
• Has complied with all provisions of the FCRA (Foreign Contribution Regulation Act).
• Not prohibited from accepting foreign contributions.
• Not guilty of diversion or mis-utilization of funds.
• Individual applicants should not be convicted under any law
• Not prosecuted or convicted for creating communal tension or disharmony.
• Not engaged in propagating sedition or advocating violence.
• Not prosecuted or convicted for inducing conversion from one religious faith to another.

Acceptance of Foreign Money 

• Should not prejudicially affect Sovereignty as well as integrity of India
• Should not prejudicially affect security, economic,scientific, or strategic interests of the State
• Should not prejudicially affect public interest
• Should not prejudicially affect freedom or fairness of elections to any Legislature
• Should not prejudicially affect friendly relations with any foreign State
• Should not prejudicially affect harmony between religious, racial, social, linguistic, regional groups, castes, or communities
• Shall not incite any kind of offense against the society at large 
• Shall not affect or danger the life as well as security of a person

What are the Key Benefits of FCRA Registration in India? 

Some of the key benefits of FCRA registration in India are: 

• Legal Compliance: Ensures compliance with Indian laws for receiving foreign contributions.
• Access to Foreign Funding: Allows receipt of foreign donations legally.
• Enhanced Credibility: Builds trust among donors, both domestic and international.
• Financial Transparency: Requires audits and reporting, ensuring transparency.
• Government Scheme Eligibility: Enables access to government grants and schemes.
• International Partnerships: Facilitates collaborations with global donors and organizations.
• Expanded Activities: Allows broader implementation of social, cultural, and charitable activities.
• Tax Benefits: Donations under FCRA may qualify for tax benefits under Indian laws.
• Recognition and Trust: Enhances recognition as a credible organization committed to global development.
• Support for Mission: Supports sustainable growth and impact of the organization's mission.

List of Documents Required for FCRA Registration

Given below are the documents which are necessary for the registration of FCRA in India: 

For Registration

• Copy of Registration Certificate under relevant Indian law (e.g., Societies Registration Act, Trusts Act, Companies Act).
• Memorandum of Association (MOA), Articles of Association (AOA), or Trust Deed.
• Copy of PAN Card of the organization.
• Details of Key Functionaries (names, addresses, PAN cards, Aadhaar cards, etc.).
• Bank Account Details (statement for last six months, IFSC code).
• Audited Financial Statements for the last three years.
• Activity Report for the last three years.
• Utilisation Certificates for FCRA funds received, if applicable.
• Previous FCRA Registration Certificate (for renewal).
• Details of FCRA Bank Account.
• Declaration by Chief Functionary regarding organization's status.
• Any other supporting documents as per FCRA rules or Ministry of Home Affairs requirements.

For Prior Permission 

• Covering Letter explaining the need for prior permission.
• Form FC-4 (Application form for prior permission).
• Copy of Registration Certificate under relevant Indian law.
• Memorandum of Association (MOA), Articles of Association (AOA), or Trust Deed.
• Copy of PAN Card of the organization.
• Details of Key Functionaries (names, addresses, PAN cards, Aadhaar cards, etc.).
• Bank Account Details (statement for last six months, IFSC code).
• Detailed Purpose and Plan for the proposed activity.
• Project Budget for the proposed activity.
• Details of foreign contributions received and utilized (if applicable).
• Any other relevant supporting documents.
• Declaration by Chief Functionary regarding organization's status.

Process of Obtaining FCRA Registration in India 

In order to Obtain the mentioned registration follow the steps given below: 

• Go to FCRA online portal.
• Click on the available option i.e ‘FCRA online forms’ to register under FCRA.
• Select the "Application for FCRA registration" link on the next screen.
• Click on the available option ‘Click to apply online’ button for FC3 (Registration).
• Sign up into FCRA by selecting the sign-up option.
• Enter all mandatory required details and then click on the save button.
• Upon saving, a message will confirm the successful creation of your User ID.
• Log into the official portal by simply using the credentials.
• Select ‘FCRA registration’ from the drop-down under "I am applying for" and click on Apply online.
• Click on ‘Click here to Proceed New Registration’ to proceed with the registration.
• Navigate to FC3 Menu in the title bar for step-by-step registration.
• Fill in Association Details
• Proceed to Executive Committee Form by simply clicking on the available option of “Executive Committee” from the menu bar.
• Enter all details about the Executive Committee.
• Select ‘Add details of Key Functionary’ to edit/delete/add Information of Executive Committee.
• To add foreign details, select the checkbox of the record and click on Add/View button.
• Enter related foreigner details. Edit/Delete Record as needed.
• Fill EC details and others by selecting the option from the menu list. Click save.
• Provide bank details (Bank Name, IFSC code, Account Number, Address of the bank).
• Click on the “Other Details” option from the menu to provide additional information.
• Upload all relevant documents in PDF format.
• Click on the final submission from the menu bar. Declare the information on the form, input the location and date, and then click the submit button.
• After final submission, confirm by clicking on OK in the pop-up window.
• Proceed with online payment by simply clicking on the available option “Make Online Payment” from the menu bar.
• On the payment screen, click on Continue for Payment, select the payment gateway, and complete the payment process.

Governing Law of FCRA Registration in India

The Foreign Contribution (Regulation) Act (FCRA) came in 2010, along with its rules, governs the acceptance and utilization of foreign contributions. Organizations must register or seek permission from the Ministry of Home Affairs for getting foreign donations, following strict guidelines to ensure transparency and accountability. This is important in order to safeguard the country. Some of the key objectives of Foreign Contribution (Regulation) Act (FCRA) came in 2010 are: 

• To regulate the utilization of foreign funds and contributions and to ensure that it is used in legitimate activities as specified in the Act.
• The acceptance with reference to utilization and the contributions which are made with reference to the national interest and might affect the public interest, sovereignty and integrity of India, public order, friendly relations with foreign states and maintaining harmony among all.
• To have a transparent transaction and utilization of foreign contributions and maintain regular reporting to the government.
• Foreign contributions are to be only used for the purpose they were received and must avoid use in any other matters.
• It requires the registration to be done in compliance with the individuals and associations towards the companies that receive foreign contributions.

Why Take Whizseed’s Services to Obtain FCRA Registration?

Any organization that is seeking to receive foreign contributions in India must either obtain regular registration or prior permission under FCRA 2010. The process of Regular registration is for established entities with a proven track record, and the process for prior permission is only for specific projects and donors, allowing newer or smaller organizations to receive foreign funds for particular initiatives. Both these types of registrations aim to ensure that foreign contributions are utilized for legitimate and transparent purposes in line with national interests.There are lots of reasons due to which you should choose Whizseed’s services, out of which some are given below: 

• Comprehensive understanding and compliance.
• Step-by-step assistance for accurate submission.
• Preparation and organization of required paperwork.
• Qualified professionals for MHA dealings.
• Develop plans to meet FCRA requirements.