FCRA Registration for NGOs in India – Step-by-Step Guide

The Foreign Contribution (Regulation) Act, commonly known as FCRA, plays a crucial role in regulating foreign funding for non-governmental organisations (NGOs) in India. For NGOs seeking to receive foreign contributions, completing FCRA online registration has become an essential step. This process ensures compliance with government regulations and allows organisations to legally accept funds from international sources.

To apply online for FCRA registration, NGOs need to navigate a series of steps and submit required documents. This article will guide readers through the FCRA online registration process, explaining the key requirements and providing a step-by-step approach. It will also cover important aspects such as prior permission, renewal procedures, and the documents needed for registration. By following this guide, NGOs can streamline their efforts to complete the FCRA online application and secure the necessary approvals for receiving foreign contributions.

Understanding FCRA Registration Requirements

Eligibility Criteria

♦ To be eligible for FCRA registration, organisations must meet specific requirements. They need to have well-defined objectives and activities that align with the permissible purposes under FCRA. The organisation should be legally registered under Indian laws, such as the Societies Registration Act, 1860, the Indian Trusts Act, 1882, or as a Section 8 company under the Companies Act, 2013 .

♦ An operational history of at least three years is necessary, with active engagement in the organisation's core area . Financial requirements include a demonstrated expenditure of at least ₹15 lakhs towards main activities over the past three financial years. However, in exceptional cases, the central government may waive this condition .

♦ The governing body members must have a clean criminal record, and the organisation should exhibit sound financial management. Additionally, at least 80% of the foreign contribution should be directed towards core activities, with administrative expenses not exceeding 20% unless prior approval is obtained from the Ministry of Home Affairs .

Required Documents

To complete FCRA registration, organisations need to submit several documents:

1. Form FC-3A: The primary application form for FCRA registration

2. Registration Certificate: A copy of the organisation's registration certificate issued by the relevant authority

3. Memorandum of Association/Trust Deed: Detailing the aims and objectives of the organisation

4. Activity Report: A detailed report of activities for the last three years

5. Audited Financial Statements: For the last three financial years

6. Board Resolution: Authorising the registration under FCRA

7. Details of Governing Body Members: Names and addresses of current board members/trustees/directors

8. Proof of Address: Document proof of the registered office

9. PAN Card: Copy of the organisation's and chief functionary's PAN

10. Bank Account Details: Information about the designated FCRA bank account

11. Key Personnel Details: Including their consent to act in the said capacity

12. Identity Proof: Copy of passport or Aadhar Card for the chief functionary and key members

Important Deadlines

Organisations should be aware of crucial deadlines related to FCRA registration and compliance. The FCRA registration needs renewal every five years. It's advisable to initiate the renewal process at least six months before the current registration expires to ensure continuity.

For organisations already registered under FCRA, it's important to note that they must file an FCRA annual return using Form FC-4. This return details the foreign contributions received and utilised during the financial year. The deadline for filing this annual return is December 31st of the year following the financial year for which the return is being filed.

Step-by-Step Guide to Online FCRA -Registration

Creating an Account To begin the FCRA online registration process, organisations need to create an account on the official FCRA portal. The first step is to visit the portal and click on the "New User? Sign Up" or "Register" option 4. Applicants will need to provide essential details such as the organisation's name, email address, and contact information 4. After filling in the required information, they should create a unique username and password for their account.

Filling the FC-3A Form Once logged in, organisations can proceed to fill out the FC-3A form, which is the primary application form for FCRA registration 5. This form requires detailed information about the organisation, including:

♦ The purpose for seeking FCRA registration

♦ Expected quantum of foreign contributions

♦ Sources of funding

♦ Information about key office bearers, trustees, or directors, including their PAN card details

♦ It's crucial to ensure all information provided is accurate and complete. The form also requires details about the organisation's objectives, activities, and financial history

Uploading Supporting Documents

After completing the FC-3A form, organisations need to upload various supporting documents. These include:

1. Self-certified copy of the registration certificate or trust deed

2. Self-certified copy of relevant pages of the Memorandum of Association/Articles of Association

3. Activity report detailing the organisation's work over the past three years

4. Audited financial statements for the past three years, including:

5. Assets and Liabilities

6. Receipts and Payments

7. Income and Expenditure

These documents should clearly reflect the organisation's expenditure on its aims and objects, as well as administrative costs. It's important to ensure all uploaded documents are legible and meet the specified requirements.

After uploading the documents, applicants should review all the information provided in the application form and attached documents for accuracy and completeness. Once satisfied, they can submit the application and pay the requisite fee online through the payment gateway provided on the FCRA portal.

Conclusion

The process of completing FCRA online registration has a significant impact on NGOs seeking to receive foreign contributions in India. By following the steps outlined in this guide, organisations can navigate the registration requirements, prepare necessary documents, and submit their applications through the official FCRA portal. This approach helps to ensure compliance with government regulations and allows NGOs to legally accept funds from international sources.

To wrap up, the FCRA registration process involves meeting eligibility criteria, gathering required documents, and adhering to important deadlines. NGOs need to be mindful of renewal procedures and annual reporting obligations to maintain their FCRA registration status. By understanding these requirements and following the step-by-step guide provided, organisations can streamline their efforts to complete the FCRA online application and secure the approvals needed to receive foreign contributions.

FAQs

What does the FCRA require?

The Fair Credit Reporting Act (FCRA) requires businesses to disclose the specific reasons for accessing an individual's credit report. This could be for purposes such as a loan application, employment verification, or a landlord conducting a credit check.

How much time does the FCRA dispute process take?

Under the FCRA, national credit bureaus are obligated to investigate and resolve credit disputes within 30 to 45 days. The standard timeframe for completing these investigations is 30 days from the receipt of the dispute.

Can you explain the FCRA as it applies in India?

In India, the FCRA refers to a law first established in 1976 and extensively amended in 2010. It governs the registration and regulation of Indian nonprofit organizations that receive foreign contributions, setting guidelines for their financial activities and reporting.