There are certain companies like charitable trusts, societies, section 8 company which receive foreign contribution or donation from foreign sources are required to obtain registration under Section 6(1) of Foreign Contribution Regulation Act, 2010. Such a registration under the Foreign Contribution Regulation Act, 2010 is called a FCRA registration.
Organizations seeking foreign charities for definite cultural, social, economic, educational or religious programmes may obtain FCRA registration or receive foreign contribution through prior permission route. It is preferable for an FCRA applicant to be a Trust or Society or a Section 8 Company. The not-for-profit entity must have also been in existence for a minimum of three years while making the FCRA application and should not have received any foreign contribution prior to that without the Governments approval. Additionally, the entity seeking registration should have spent at least Rs.10,00,000/- over the last three years on its aims and objects, excluding administrative expenditure. Statements of Income & Expenditure, duly audited by Chartered Accountant, for last three years are to be submitted to substantiate that it meets the financial parameter. In case a newly registered entity would like to receive foreign contributions, then approval for a specific activity, specific purpose and from a specific source can be made to the Ministry of Home Affairs through the Prior Permission method.
The person or entity making an application for registration or grant of prior permission
1) Is not fictitious or benami;
2) Has not been prosecuted or convicted for indulging in activities aimed at conversion through inducement or force, either directly or indirectly, from one religious faith to another;
3) Has not been prosecuted or convicted for creating communal tension or disharmony in any specified district or any other part of the country;
4) Has not been found guilty of diversion or mis-utilisation of its funds;
5) Is not engaged or likely to engage in propagation of sedition or advocate violent methods to achieve its ends;
6) Is not likely to use the foreign contribution for personal gains or divert it for undesirable purposes;
7) Has not contravened any of the provisions of this Act;
8) Has not been prohibited from accepting foreign contribution;
9) The person being an individual, such individual has neither been convicted under any law for the time being in force nor any prosecution for any offence is pending against him.
10) The person being other than an individual, any of its directors or office bearers has neither been convicted under any law for the time being in force nor is any prosecution for any offence pending against him.
The acceptance of foreign contribution by the entity / person is not likely to affect prejudicially
1) The sovereignty and integrity of India;
2) The security, strategic, scientific or economic interest of the State;
3) The public interest;
4) Freedom or fairness of election to any Legislature;
5) Friendly relation with any foreign State;
6) Harmony between religious, racial, social, linguistic, regional groups, castes or communities.
7) The acceptance of foreign contribution
Shall not lead to incitement of an offence;
1) Shall not endanger the life or physical safety of any person.