FCRA Registration – An Overview

In India, any organization seeking to accept foreign contributions must obtain Foreign Contribution Regulation Act Registration (FCRA registration) from the Central Government. FCRA registration is crucial for organizations engaged in cultural, economic, educational, religious, or social programs, ensuring they can legally receive foreign funds.

The FCRA license promotes transparency and accountability in utilizing foreign contributions, safeguarding both the organization and its donors under Indian law. Governed by the Ministry of Home Affairs, FCRA NGO registration also enhances foreign donor confidence by allowing them to claim tax deductions on their contributions.

Facing challenges in the FCRA online registration process? Contact our experts at Fastzeal to secure your FCRA license and receive foreign donations for various programs without government restrictions.

Advantages of FCRA Registration

1. Global Credibility

FCRA registration enables non-profit organizations to legally accept foreign donations, enhancing their international credibility.

2. Easy Access to Foreign Funds

Registered organizations can receive foreign contributions seamlessly, supporting their social missions.

3. Investor Confidence

Online FCRA registration reassures both domestic and foreign donors about the organization's compliance and commitment to its objectives.

4. Tax Benefits

Eligible organizations gain tax exemptions under the Income Tax Act, including Sections 80G and 12A.

5. Enhanced Sustainability

FCRA registration provides long-term financial support, strengthening the organization’s stability and operational longevity.

Eligibility Criteria for FCRA Registration

To apply for FCRA registration, an organization must meet the following requirements:

• Must be registered under the Societies Registration Act, 1860; Indian Trusts Act, 1882; or Companies Act, 2013.

• Must have an FCRA account with SBI, New Delhi.

• Must have a minimum of three years of proven activities benefiting society in its field.

• A minimum of Rs. 15 lakhs must have been spent on core activities over the past three years.

• Must hold a 12A registration certificate under the Income Tax Act.

Documents Required for FCRA Registration

The following documents are needed for FCRA registration:

• Registration Certificate of the Association

• Memorandum of Association/Trust Deed

• Activity Report for the last three years

• Audited financial statements for the last three years

• Affidavit of each key functionary

• Chief Functionary’s Signature

• Seal of the Association

Process for FCRA Registration

Follow these steps for FCRA online registration:

1. Visit the Official Website – Go to the Ministry of Home Affairs website and select “FCRA Online Forms.”

2. Select the Relevant Form – Choose Form FC-3A for fresh FCRA registration or Form FC-3B for prior permission.

3. Create an Account – Sign up with a username and password for future use.

4. Log In – Use your credentials to log in and select “FCRA Registration.”

5. Fill Out the Form – Enter all necessary details accurately.

6. Provide Executive Committee Details – Fill out information regarding key functionaries.

7. Upload Documents – Submit all required documents in PDF format.

8. Pay the Application Fee – Complete the fee payment using the available payment methods.

9. Receive Confirmation – Upon successful submission, a confirmation is sent for FCRA registration.

Penalties for FCRA Violations

Organizations failing to comply with FCRA regulations may face the following penalties:

Violations:

• Accepting foreign contributions without FCRA registration

• Misuse of foreign funds

• Non-filing of annual returns

• Transferring foreign contributions to unauthorized organizations

Penalties:

• Suspension of FCRA license

• Cancellation of FCRA registration

• Financial penalties, seizure, and confiscation of funds

• Imprisonment

Types of FCRA Registration

1. Prior Permission Certificate (PPC)

PPC is a temporary FCRA license, typically issued for one year, allowing organizations to receive foreign contributions for a specific project or period.

Examples: Educational institutions, hospitals, and individuals.

2. Permanent Registration Certificate (PRC)

PRC is a long-term FCRA license valid for five years, granted to organizations with a stable track record of operations.