FCRA Registration Procedure in India

Introduction:

Any registered NGO is required to apply for FCRA registration under Foreign Contribution (Regulation) Act, 2010 if it is planning to receive any kind of contribution from a foreign national. Such investor can be an individual or an organization. This is a mandatory per-requisite to acquire such FCRA registration; this is not optional in nature. 

What is foreign contribution?

We know that FCRA registration is required to receive any kind of foreign contribution. But, what is actually considered as ‘foreign contribution’ is the big question. Section 2 of the Foreign Contribution (Regulation) Act, 2010 has specified the definition for foreign contribution. This section states that any donation, delivery or transfer made in the following form by any foreign source will constitute as foreign contribution:

• Any currency, whether Indian or foreign.
• Any article excluding any gift whose market value does not exceed Rs. 25,000 at the time of transfer
• Any security as defined in clause (h) of section 2 of the securities Contracts (Regulation) Act, 1956 and includes any foreign security as defined in clause (o) of Section 2 of the Foreign Exchange Management Act, 1999.

Applicant for FCRA Registration:

One of the most basic requirements of FCRA Registration process for NGO is that it is granted to a non-profit organization. In India, an NGO can be established as trust, society or section 8 companies. This means that in order to become an applicant, it must be registered under any one of the following existing statutes:

• Indian Trusts Act, 1882 
• Societies Registration Act, 1860 or 
• Section 8 of Companies Act, 2013

Process of Registration:

The application procedure for FCRA registration is a totally online process The applicant can file an application for proper FCRA Registration or prior approval depending upon their stage of operation. The applicant can apply for FCRA registration, if the organization has been registered and working for the past 3 years. In any other case they are required to apply for prior approval..

FCRA registration is a very straight forward process. The applicant is required to submit online application form FC-3 available on the portal https://fcraonline.nic.in. For both the cases (FCRA registration & Prior Approval), the application will be submitted through FC-3 form. The applicant is required to upload Scanned copies of all the required documents in the form before submitting the application.

One of the most important pre-requisite for filing an application for FCRA registration is that the institution must be registered on the DARPAN portal provided the NITI Ayog. While initiating the registration procedure, the applicant is required to create a login ID, for which DARPAN ID is a mandatory requirement.

This may seem like a fairly easy procedure, but many attachments are required to be submitted along with this application. These attachments are to make sure that the NGO is working with a view to forward its main objective mentioned in the registration documents and that all its transactions are clean. 

The submitted applications are scrutinized very intricately by the authorities. In recent years, a lot of licenses have been cancelled and applications have been either rejected or sent for re submission. Thus, it is recommended to take professional guidance for this application submission.

Required Documents for Registration:

While submitting the FC-3 application form scanned copies of the following documents are required to be attached with it:

For FCRA Registration:

• Certified copy of incorporation document of the applicant association.
• Copy of PAN card of the NGO
• Jpg file of signature of the chief functionary
• Certified copy of relevant pages of MOA/AOA/Deed reflecting the main objects of the association.
• Detail about the current and past management of the trust
• Annual report of the NGO and details of work done in past 3 years
• Copy of the resolution passed by the Governing Body of the NGO
• A Copy of 80G & 12A certificates issued by the Income Tax Authority.
• Copies of audited Assets and Liabilities, Receipt and Payment, Income and Expenditure statement etc. of last 3 years reflecting the expenditures
• Activity Report of last three years

For Prior Permission:

• Certified copy of the incorporation document of the applicant association.
• Copy of PAN of the NGO
• Jpg file of signature of the chief functionary
• Certified copy of relevant pages of MOA/AOA/Deed reflecting the main objects of the association.
• Signed approval or commitment letter from the foreign contributor.
• Copies of audited Assets and Liabilities, Receipt and Payment, Income and Expenditure statement etc. of last 3 years reflecting the expenditures
• Detail about the current and past management of the trust
• A true copy of the resolution passed by the Governing Body of the NGO
• A Copy of 80G & 12A certificates issued by the Income Tax Authority.

Source by: http://www.sooperarticles.com/business-articles/consulting-articles/fcra-registration-process-1658092.html