Non-Governmental Organizations (NGOs), Trusts, Societies, and Section 8 companies play a crucial role in social development by implementing projects related to education, healthcare, rural development, and environmental sustainability. To receive foreign donations and funding legally in India, these organizations must obtain FCRA Registration under the FCRA Act 2010.
What is FCRA?
FCRA Full Form & Meaning
FCRA Full Form: Foreign Contribution Regulation Act
The Foreign Contribution Regulation Act (FCRA) was enacted in 2010 to regulate foreign contributions to Indian entities. It ensures that foreign donations are utilized for legitimate and charitable purposes and do not pose a threat to national security.
Why is FCRA Registration Important?
1. Legality of Foreign Donations
•NGOs cannot receive foreign funds unless they have FCRA Registration.
•It ensures that foreign contributions are used ethically and transparently.
2. Eligibility for CSR and Government Funding
•Organizations with FCRA Registration can receive international CSR Funds for social projects.
•It enhances credibility and compliance with CSR Applicability rules.
3. Compliance with Indian Laws
•FCRA-registered organizations must maintain proper records and submit annual reports via FCRA Online Services.
•They must also ensure compliance with 12A and 80G Registration for tax benefits.
4. Global Recognition
•FCRA Registration enables NGOs to collaborate with international donors, UN agencies, and foreign philanthropic foundations.
Who Can Apply for FCRA Registration?
The following entities are eligible to apply:
•Non-Governmental Organizations (NGOs)
•Trusts and Societies involved in social work
•Section 8 Companies registered under the Section 8 company registration process
•Educational & Religious Institutions working for public welfare
•Associations involved in CSR Activities
Types of FCRA Registration
There are two types of FCRA Registration, depending on the nature and scope of an organization’s foreign funding:
1. Prior Permission (PP) Registration
•Suitable for newly registered NGOs, trusts, or Section 8 companies.
•The NGO must apply for specific project-based foreign funding from a designated donor.
•Requires the submission of a commitment letter from the foreign donor.
2. Permanent FCRA Registration
•Recommended NGOs operating for at least 3 years.
•Requires a proven track record of legal and ethical financial transactions.
•The organization should have spent at least ₹10 lakh in the last three years on social projects (excluding administrative expenses).
Step-by-Step FCRA Registration Process
Step 1: Obtain NITI Aayog Registration
Before applying for FCRA Registration, NGOs must first register on the NGO Darpan Portal of NITI Aayog.
•Visit the NGO Darpan Portal.
•Fill in organizational details such as name, address, PAN, and activities.
•Submit documents and obtain a Unique ID (UIN) for official recognition.
Step 2: Ensure 12A and 80G Registration Compliance
NGOs applying for FCRA Registration should already have 12A and 80G Registration to enjoy tax exemptions and transparency in fund management.
How to Get 12A and 80G Registration?
•Apply through the Income Tax Department Portal.
•File Form 10A for 12A Registration and Form 10G for 80G Registration.
•Once approved, NGOs can receive tax-exempt donations and claim 80G Registration benefits.
Step 3: Open a Dedicated FCRA Bank Account
NGOs must open an exclusive FCRA Bank Account in the State Bank of India (SBI), New Delhi Main Branch to receive foreign funds.
Step 4: Apply for FCRA Registration Online
1.Visit the FCRA Online Services Portal.
2.Choose Form FC-3A for Permanent Registration or Form FC-3B for Prior Permission.
3.Fill in details related to:
-Organization’s activities
-Past financial transactions
-Foreign donor details
4.Upload necessary documents and pay the registration fee.
Step 5: Verification and Approval
•The Ministry of Home Affairs (MHA) will review the application.
•A background check and physical inspection may be conducted.
•Once approved, FCRA Registration is valid for 5 years.
FCRA Renewal Process & Checking FCRA Renewal Status
Since FCRA Registration is valid for 5 years, NGOs must renew it before expiration.
Steps for FCRA Renewal
1.Log in to the FCRA Online Services portal.
2.Submit Form FC-3C with updated financial reports.
3.Pay the renewal fee and track FCRA Renewal Status online.
CSR-1 Registration and FCRA Registration: Connection
What is CSR-1 Registration?
CSR-1 Registration is mandatory for NGOs to receive CSR Funds from corporate donors.
How Does CSR-1 Registration Help in FCRA Compliance?
•CSR-1 Registration ensures the NGO is recognized for corporate funding.
•Organizations with CSR-1 and FCRA Registration can receive both domestic and foreign CSR funds.
Common Reasons for FCRA Registration Rejection
1.Non-compliance with 12A and 80G Registration
Lack of proper accounting records
Non-disclosure of foreign donors
Failure to maintain a dedicated FCRA Bank Account
Conclusion
FCRA Registration is essential for NGOs, trusts, and Section 8 companies to legally receive foreign contributions. The process involves NITI Aayog Registration, 12A and 80G Registration, CSR-1 Registration, and opening an FCRA Bank Account before submitting an online application through FCRA Online Services. Ensuring compliance with the FCRA Act 2010 and maintaining transparency in fund utilization are crucial for approval. Since FCRA Registration is valid for 5 years, organizations must track their FCRA Renewal Status to maintain eligibility. By following this step-by-step guide, NGOs can secure foreign funding to expand their social impact effectively.
Frequently Asked Questions (FAQs)
1. Can a newly registered NGO apply for FCRA Registration?
Ans. Newly registered NGOs can apply for Prior Permission (PP) Registration under FCRA if they have a specific foreign donor and a letter of commitment. For Permanent FCRA Registration, the NGO must have a three-year operational record with at least ₹10 lakh spent on social projects.
2. Is FCRA Registration mandatory for receiving foreign donations?
Ans. Yes, as per the FCRA Act 2010, NGOs, trusts, and Section 8 companies must obtain FCRA Registration before receiving foreign contributions. Without it, foreign funding is considered illegal.
3. What is the validity of FCRA Registration, and when should it be renewed?
Ans. FCRA Registration is valid for 5 years, and NGOs must renew it before expiration by checking the FCRA Renewal Status on the FCRA Online Services portal.
4. What are the key requirements for FCRA Registration?
Ans. To apply for FCRA Registration, an NGO must:
•Have a valid Section 8 company, trust, or society registration
•Maintain a dedicated FCRA Bank Account at SBI, New Delhi Main Branch
•Be compliant with 12A and 80G Registration
•Submit financial statements and activity reports for at least three years
5. How can an NGO track its FCRA Renewal Status?
Ans. NGOs can check their FCRA Renewal Status on the FCRA Online Services portal by entering their registration number and verifying the renewal application progress.
