9870310368 9958944009

Learning

Learning » NGO » FCRA » FCRA Registration Process for NGO

FCRA Registration

FCRA Registration Process for NGO

Narendra Kumar

| Updated: Nov 15, 2017 | Category: FCRA, NGO

FCRA Registration Process for NGO

Getting permission for Foreign contribution in an NFO is strictly regulated and in recent years, large no of the old license has been canceled and renewal has been stopped. Now, the Government is willing to issue FCRA registration only to an NGO who has done remarkable social reforms or have benefited society at large. In this article, we will discuss the FCRA Registration process.

Eligibility for Procurement of FCRA Registration

Nonprofit Organizations looking for foreign contributions for certain cultural, social, economic, educational or religious programs can obtain FCRA registration or receive the foreign contribution through “prior permission” route. It is desirable for an FCRA applicant to be Trust or Society or a Section 8 Company. The not-for-profit entity must have also been in existence for at least three years while making the FCRA application & shouldn’t have received any foreign contribution preceding to that without the Government’s approval. Moreover, the entity or the firm looking for registration should have spent a minimum of Rs.10,00,000/- over the last 3 years on its aims & objects, excluding administrative expenditure. Statements of Income & Expenditure, duly audited by Chartered Accountant (CA), for the last 3 years are to be submitted to validate that it meets the financial parameter.

If a newly registered entity would like to receive foreign contributions, then approval for a specific activity, specific purpose and from a specific source can be made to the MCA through the Prior Permission (PP) method.

Criteria for Grant of FCRA Registration

Once, the FCRA application is made in the prescribed format, the following criteria are check before providing registration.

(a) The ‘person’ or ‘entity’ making an application for registration or grant of prior permission-

  • Is not fictitious or benami.
  • Has not been prosecuted or convicted for indulging in activities aimed at conversion through force, either one directly or indirectly, OR from one religious faith to another;
  • Has not been prosecuted or convicted for making communal tension in any specified district or any other part of the country;
  • Has not been found guilty of diversion of its funds;
  • Is not engaged in the propagation of sedition or advocate violent methods to achieve its ends;
  • Isn’t likely to use the foreign contribution for personal gains or for undesirable purposes;
  • Has not contravened any of the provisions of this Act;
  • Has not been barred from accepting foreign contribution;
  • The person is an individual, such individual has neither been convicted under any law for the time being in force nor is any prosecution for any offense pending against him.
  • The person is other than an individual, any of its directors or office bearers have neither been convicted under any law for the time being nor are in any prosecution for any kind of offense awaiting him.

(b) The acceptance of foreign contribution by the entity/person is not likely to affect prejudicially –

  • The sovereignty and integrity of India;
  • The security, strategic, scientific or economic interest of the State;
  • The public interest;
  • Freedom or fairness of election to any Legislature;
  • Friendly relation with any foreign State;
  • Harmony between religious, racial, social, linguistic, regional groups, castes or communities.

(c) the acceptance of foreign contribution-

  • Shall not lead to incitement of an offense;
  • Shall not endanger the life or physical safety of any person.

Applying for FCRA Registration

Application for FCRA Registration process can be made using Form FC-3. Along with the application, the following documents must be submitted:

  • Self-certified copy of the document of registration certificate/trust deed etc., of association
  • Self-certified copy of related pages of a memorandum of association/ article of association showing aim and objects of the association.
  • Activity Report signifying details of activities during the last 3 years;
  • Copies of the relevant audited statement of accounts for the past 3 years (Assets and Liabilities, Receipt and Payment, Income and Expenditure) clearly stating expenditure incurred on aims and objects of the association and also on administrative expenditure;

The Validity of FCRA Registration

Once FCRA registration is granted, it is valid for a period of 5 years. An application for renewal of FCRA registration can be made 6 months prior to the date of expiry, to keep the registration valid.

Narendra Kumar

Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.

Business Plan Consultant


Request A Call Back

Are you human?: 9 + 8 =

Categories

Startup CFO

Trending Articles

Hey I'm Suman. Let's Talk!