Updated on November 26, 2022 05:57:29 PM
FCRA registration is a permit issued by the Ministry of Home Affairs to monitor the foreign donations received by Non-Profit Organisations in India. If you are a registered NGO, a Charitable Trust or a Section 8 Company and wish to receive foreign donations, you must register under the Foreign Contribution Regulation Act (FCRA).
Registration under FCRA helps charitable trusts and NGOs to get funds from foreign sources in their FCRA account. Non-Profit organizations in India that are providing necessary support to specific groups of people on a large scale are eligible to receive donations from the Foreign Funding Agencies.
Read on to learn everything about the FCRA, foreign contributions, and getting your organization registered under FCRA.
FCRA Certificate Sample
FCRA stands for Foreign Contributions Regulation Act. It is a law that regulates the acceptance of foreign contributions. The law requires organizations in India to register with the state department before receiving any funds from sources outside the country.
Foreign Contribution Regulations Act was formed in 1976 with the objective of regulating the flow of foreign donations toward NGOs and Charitable Organisations in India.
When the Emergency was declared in 1976, there were many fears of other countries interfering in India's affairs by pumping money into the country through separate organizations. These worries are actually older than one might think; they had been discussed in Parliament as early as 1969.
In order to consolidate these rules (regarding the use of foreign funds) and prohibit their usage for activities deemed other than that of national interest. Implementation of this Act granted more control and scrutiny to the government over the transactions of NGOs from foreign sources.
In order to register under the Foreign Contribution Regulation Act (FCRA), the Association must fulfill the following criteria:
The following documents are required To register your NGO under the Foreign Contribution Regulation Act (FCRA),
Darpan ID is now mandatory to be filled in the FC-3 Forms during FCRA registration. You can obtain a Darpan ID from the NITI Aayog portal.
You must have an FCRA account opened in the SBI New Delhi Main Branch, in which you will receive donations from foreign sources.
Adhaar card of key officials is mandatory for FCRA application. A passport or OCI is required in case the member is a foreigner operating the Organisation in India.
The FCRA registration process is a complex one and requires the applicant to be well informed about the Complete procedure. The steps involved in this process are as follows:-
The first step is to access the online portal of FCRA by the Ministry of Home affairs. Visit the official FCRA website to access the FCRA registration portal.
Create a login ID and password. You will need to log on to the FCRA online portal by using the ID and password. Once you log in, click on the new registration or prior permission registration or FCRA renewal.
Fill out the desired FC-3 form as per your requirements for FCRA registration. Different forms for FCRA are listed in the Table Below:
|Type of FCRA Registration||Application Form|
|FCRA Annual Return Filing||FC-4|
Upload the required documents for FCRA registration in a prescribed format. Make sure that the documents uploaded are as per the required size provided on the MHA portal. The incorrect format can lead to the cancellation of the application.
Finally, you need to pay the required fees for FCRA registration online. The government fees vary accordingly with the type of FCRA registration you are applying for.
Once everything is in order, you'll be registered under FCRA and can start receiving foreign donations.
The government fees for FCRA prior permission is ₹5000 while the Government fees for Fresh FCRA registration is ₹10000. Apart from that, the NGO needs to pay a professional fee of ₹15000 for registering their Trust, society or section 8 Company under FCRA.
The government fees for FCRA Registration are as follows:
|FEES(₹)||FCRA REGISTRATION(₹)||FCRA PRIOR PERMISSION(₹)|
If you are a registered NGO or trust that receives foreign donations, you are required to file an annual return with the Ministry of Home Affairs. You must also file a quarterly return if your total receipts from foreign sources exceed Rs. 1 crore in a financial year.
A return must be submitted for each fiscal year (April 1st - March 31st) within nine months after the end of the year or by December 31st. A Chartered Accountant's certified balance sheet and statement of receipts and payments must be included with the return, which must be filed using the standard Form FC-4.
The FCRA online portal offers a hassle-free way to file your returns. The portal is user-friendly and easy to navigate. You can also pay your FCRA fees online through the portal.
The FCRA Bank Account is a separate account mandatory for all foreign contributions received by organizations under the FCRA.
All foreign contributions can only be received in an account opened at State Bank of India, New Delhi Main Branch. It takes 7 days from the application date to get your FCRA account opened.
Any existing organization certified under FCRA is not allowed to receive foreign donations in any other account. However, the fresh applicants must open the FCRA account after the issuance of the FCRA certificate by the Ministry of Home Affairs.
The FCRA Account opened in SBI, New Delhi Main Branch can only be used for collecting foreign contributions, and you can't deposit or receive any funds other than foreign donations in the FCRA bank account.
FCRA registration helps an association to receive foreign donations for definite cultural, economic, educational, religious or social programs without any government restrictions.
It also seeks to promote greater transparency in the manner in which foreign funds are raised and spent by NGOs and other trusts involved in a social cause.
The government provides significant support to the organizations registered under FCRA. With tax exemption on income, capital gains and donations.
The FCRA registration helps social workers to identify the source of money received by their clients and analyze it properly. It provides freedom to the organizations working for the welfare of society.
FCRA registration helps the government to prevent the misuse of foreign donations. This also helps them identify the true nature of the donation received by the organization and how it is used for its intended purpose.
The complexities in the FCRA registration process and document uploading may seem daunting, and it is advised to seek an FCRA expert like Professional Utilities. Here you can Register your Ngo under FCRA effortlessly.
The process of obtaining an FCRA certificate is rather easy when you are backed by Professional Utilities. All you need to do is to follow these 3 simple steps:
The FCRA registration is valid for five years and has to be renewed every year to continue receiving foreign contributions.
All NGOs and Trusts receiving foreign contributions are required to get their FCRA registration renewed every five years. Renewal of FCRA registration ensures that all NGOs and trusts comply with Indian laws in order to receive foreign funds.
If you do not renew your registration, you will not be able to receive any more foreign donations. Furthermore, if you are found to be in violation of the FCRA, your registration may be canceled, and you may face penalties.
According to the FCRA Amendment 2020, The government may enquire about the working of NGOs to make sure that the Organisation is fulfilling the conditions.
The Government fees for FCRA Renewal is ₹5000, which must be paid by the Non-profit organization before the due date of FCRA certificate validity to continue receiving and utilizing funds from foreign sources. The professional fees for FCRA registration is ₹15000 per certificate.
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FCRA registration is permission that allows a charitable trust, section 8 company or an NGO to receive donations from foreign countries.
Yes, it is mandatory to have FCRA registration for your Ngo or trust to be able to receive foreign donations. Otherwise, you may face multiple government restrictions while receiving money from foreign sources.
It is a punishable offense to receive foreign donations without being registered under FCRA. You may be charged a fine or imprisonment of upto three years or both if you are found violating any of the laws under the Foreign Contribution Registration Act.
It takes 4 months to get an FCRA Registration Certificate.
FCRA registration is valid for 5 years, and it must be renewed after the completion of 5 years from the date of registration. A Ngo can't receive any foreign donations without a valid FCRA certificate.
Yes. Donations from NRIs are considered a foreign contribution, and It is mandatory to register under FCRA if a Ngo is receiving foreign contributions.
A private Limited Company or a partnership firm can apply for FCRA registration if they are willing to receive foreign donations or planning to do some charitable work in the future.