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FCRA Registration

FCRA Registration

Foreign contributions or income from nations outside of India are governed by the Foreign Contribution Regulation Act (FCRA). The FCRA was put into effect to make sure that foreign aid did not compromise India’s sovereignty or political integrity. Under the Foreign Contributions Regulation Act, non-governmental organizations, charitable organizations that accept funds from overseas, and foreign sources must register. The prior authorization procedure is used for registration with the FCRA registration department, which is part of the Ministry of Home Affairs. NGOs must register under the FCRA since they cannot accept donations from abroad directly.

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Benefits of FCRA Registration

The benefits of FCRA registration are many. Some of them are-

  • Foreign Investment
  • Compliance
  • Donations.
  • Government Support
  • Recognition

Eligibility for FCRA registration

The organization’s principal goal must be charitable work or societal service without a profit-making objective, such as in the areas of health, education, the arts, culture, entertainment, etc. The other criteria include-

  • Minimal term
    The applicant must have been registered and in business for at least three years before requesting registration.
  • Accounting Statements
    The last three financial years’ financial statements must be signed by an authorized accountant, and both the revenue and expense statements and financial statements must be provided.
  • Minimal costs
    The primary goal of the NGO was to receive a minimum of Rs. 10 lakhs, excluding any administrative costs.
  • Registering of an NGO
    The applicant must be registered by the aforementioned Acts, including the Trusts Act of 1882, the Companies Registration Act of 1860, and Section 8 of the Companies Act, which requires that NGOs be registered under the Companies Act 2013.

Documents of FCRA Registration

The documents required for FCRA Registration are as follows-

  • Certified copy of the certificate of incorporation or trust
  • Data on the non-profit organization and PAN
  • A copy of the founding agreement and articles of association
  • Certificate issues as per under Section 12AB of the Income Tax Act
  • Impression of the chief functionary
  • Certified true copies of the governing body’s resolution
  • Detailed activity report for the previous 3 years
  • Audited financial statements
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Validity of FCRA License

An FCRA registration is valid for 5 years after its approval. If the registered entity is engaged in continuous activities, a renewal application must be submitted at least 6 months before the registration expires. At least six months before to the term’s expiration, the registered entity must notify the other party.

Non-Compliances for FCRA Registration

Final words

Registration under the Law on the Regulation of Foreign Contributions offers many benefits to organizations engaged in social and charitable activities by facilitating the legal receipt of foreign contributions, expanding funding sources, increasing credibility, and enabling cooperation with international donors and partners.