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FCRA Registration in 2010 Foreign Contribution (Regulation) Act, 2010 was enacted with a view to regulating any kind of foreign contribution or foreign hospitality accepted by any individual or association. This was done to consolidate all the laws and relating rules and regulations. This created a transparent system for E-governance of FCRA related activities done by any individual or organization.
As per Section 6 (1) of Foreign Contribution (Regulation) Act, 2010 if any NGO is planning to receive any foreign contribution or donation either in cash or in kind, then it is required to obtain FCRA Registration. It is a mandatory requirement irrespective of the composition of the NGO including Trust, Society or Section 8 Company.
As we have just discussed FCRA was introduced with a view to regularizing the foreign contribution. This transparency in the activities was introduced with an objective to discourage any activity which is against the national interest.
Section 12 (4) (g) of the Act specifies that a person registered under FCRA can accept any amount of foreign contribution only if:
In order to receive any form of foreign contribution, FCRA Registration is a mandatory requirement. We have already covered that part. But who can register and how is the remaining question.
The person filing for FCRA registration must be a registered under an existing statute. They can include:
However, not every organization is eligible for proper registration under FCRA. FCRA Registration can be received if following mentioned two ways:
Following are the pre-conditions to be satisfied before receiving any foreign contribution:
FCRA Registration granted under the Act does not come with lifetime validity; it expires after 5 years from the date of grant of such registration.
On the other hand, the validity of prior permission will be earlier of the two;
The registered person will be required to file for renewal at least 6 months before the expiry of the registration period. However, in case the applicant has multi-year on-going projects this renewal application is required to be filed at least 12 months before the expiry date.
As discussed in this article in order to obtain registration under FCRA, there are two separate ways to do that; Proper FCRA registration process and Prior approval. There is the difference on the basis of registration, eligibility and prior requirements. Below we have listed out few basic features of both these cases.
For Proper Registration: This registration is for established entities. The applicant is required to fulfill the following pre-conditions:
For Prior Permission: The entities which are in the formative stages i.e. not 3 years have elapsed from their date of the establishment are required to apply for prior permission. NO work experience in the field is required.
Following are the pre-conditions to be satisfied with prior approval: