What is the FCRA?

Foreign donations are regulated by the FCRA, which ensures that they do not jeopardise national security. It was first enacted in 1976, and it was updated in 2010 to include a raft of new regulations governing foreign donations. All associations, groups, and non-governmental organisations (NGOs) who want to receive foreign donations must comply with the FCRA.

The Objective of FCRA 2010

The Foreign Contribution Regulation Act, 2010 was enacted with a view to:-

• Regulate the acceptance and utilization of foreign contribution or foreign hospitality by certain individual associations or companies. Prohibit the acceptance and utilization of foreign hospitality or foreign contribution for any activities unfavourable to national interest and for matters related to therewith or incidental thereto.

Eligibility Criteria

Normal Registration

• The applicant must be registered under the Societies Registration Act, 1860 or the Indian Trusts Act, 1882 or registered as Section 8 Company as per the Companies Act, 2013 or any such Act as may be required.
• Must have made reasonable contributions by undertaking activities in its chosen field for the benefit of society.
• Must have spent a minimum of Rs. 10,00,000 in the last 3 years towards achieving its objectives (Excludes administrative expenditure).
• Must submit the copies of the financial statements of the last 3 years that are duly audited by qualified Chartered Accountants.
• If a newly registered entity likes to get foreign contributions, then an approval for a specific purpose, specific activity, and from a specific source can be made to the Ministry of Home Affairs via the Prior Permission (PP) method.

Prior Permission Registration

The Prior Permission route is ideally suited for those organizations which are newly registered and would like to receive foreign contributions. This is granted for receipt of a specific amount from a specific donor for carrying out specific activities/projects. The association must:-

• Be registered under the Societies Registration Act, 1860 or the Indian Trusts Act, 1882 or registered as Section 8 Company as per the Companies Act, 2013 or any such Act as may be required.
• Submit a specific commitment letter from the donor to the Ministry of Home Affairs which indicate: -
  • Amount of contribution given
  • Purpose for which it is proposed to be given
• Where the Indian recipient organization and foreign donor organization have common members, the following conditions need to be met:
  • The Chief Functionary of the Indian organization can't be part of the donor organization.
  • At least 51% of the members/office-bearers of the governing body of the Indian recipient organization should not be employees/members of the foreign donor organization.
• Where the foreign donor is an individual:
  • He cannot be the Chief Functionary of the Indian organization.
  • At least 51% office bearers/members of the governing body of the recipient organization should not be the family members and close relatives of the donor.

Application Procedure

In order to apply for registration under FCRA, the steps are as follows:-

• The first step is the one where the online portal of FCRA needs to be accessed.
• Form FC-3A (Application for FCRA Registration) or Form FC-3B (Application for FCRA Prior Permission) is to be clicked on, as the case may be.
• The webpage will next present the user with an option to apply online.
• Once the "Apply Online" option is selected, the next step is to create a username and password by clicking on "Sign Up".
• Once a username and a password have been created, and the message regarding the same is displayed on the screen, the applicant may log in to the account.
• Once logged in, the "I am applying for" will have a dropdown list from which FCRA Registration has to be chosen. "Apply Online" is to be selected next, following which "Proceed Registration" has to be selected.
• Next, in the title bar, the FC-3 menu is to be clicked on to start the new registration procedure.
• This gives way to the association form where the relevant details have to be entered by the applicant along with the attachments containing the following documents: - Darpan ID (not mandatory) - Association Address - Registration Number – Registration Date – Nature of the Association – Main object of the Association Once these details are filled in along with the attachments, the submit button is selected.
• The Executive Committee option has to be selected next from the menu bar. The details will be filled in the Executive Committee form.
• The option "Add details of Key Functionary" enables the applicant to add/delete/edit the details entered in the Executive Committee.
• Once all the Executive Committee details are entered in, the "Save" button must be clicked on.
• Further, bank details will have to be provided, including bank name, account number, IFSC code and address of the bank.
• Once the bank details are entered in, all the required documents are to be uploaded in PDF format.
• The place and date need to be entered in next after which the final submission button may be selected.
• The final step is to make the online payment by clicking on that particular button. Once the payment is made and the form is submitted, no changes can be made to the said form.

Once the FCRA registration is granted, the validity is for a five-year period. Nevertheless, it is to be noted that an application for the renewal of the FCRA registration has to be made 6 months prior to the date of expiry.

Forms:

The following major forms are required to be filed under FCRA:

Form Number	Purpose
FC-1	-Intimation of receipt of foreign contribution by way of gift, articles from a relative -Intimation about the foreign contribution by way of securities -Intimation of receipt of foreign contribution by a candidate for election
FC-2	Application for seeking prior permission of the government to accept foreign hospitality
FC-3A	Application for FCRA registration
FC-3B	Application for Prior Permission
FC-3C	Application for renewal of FCRA registration
FC-4	Intimation of Annual Returns
FC-5	Application for seeking permission for the transfer of foreign contribution to persons who are not registered
FC-6	A. Intimation of change of name and address within the State of Association B. Change of nature/aims/objectives of the association C. Change of designated bank/ bank branch of designated FC receipt bank account D. Opening of additional FC utilization bank account E. Change in original key members of the association

We, at the companywala have professionals which are rendering their expertise in the area of FCRA Consultancy, Registration and all related compliance thereof.

For further assistance, feel free to contact us on info@chheda.net.in
Disclaimer:- The materials provided herein are solely for information purposes and shall not be treated as solicitation in any manner and for any other purpose whatsoever. It shall not be used as legal opinion and not to be used for rendering any professional advice. The material s written on the basis of the provision applicable as on date of writing of this article.