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FCRA Registration

Courtesy/By: Deepshikha Thakur | 2021-01-02 21:22     Views : 270

To regulate the acceptance and utilization of foreign contribution by individuals, associations, or companies and to prohibit the acceptance and utilization of foreign contribution for any activity that is against national interest and is unfavorable to public interest The foreign contribution regulation act, 2010 was enacted. After registering under the foreign contribution regulation act and NGO can approach different foreign financing companies like Ford Foundation, Infinity Foundation, BORDA, New Zealand High Commission, UNESCO, Japanese embassy, British High Commission, Bill and Melinda Gates Foundation.


Normal registration and prior permission are 2 ways by which an organization can up 10 registration as per FCRA, 2010.


The criteria that need to be fulfilled for Normal registration are –


That the applicant Association should be registered under Acts like Indian trust act 1882, societies registration act 1860, charitable and religious act 1920, Companies Act 1956 Or Companies Act 2013. The applicant must have made reasonable contributions for the benefit of society by undertaking activities and in 3 years he must have spent a minimum of 10,00,000. The applicant must submit the copies of financial statements that are duly audited by Chartered Accountants, does financial statement must contain the details of the last 3 years. Prior approval for a specific purpose, specific activity, and from a specific resource needs to be made to the ministry of Home Affairs through the prior permission method if a registered entity wishes to get a foreign contribution.


To get prior permission the applicant association must Be registered under acts like Indian trust act 1882, societies registration act 1860, share a table and religious trust act 1920, Companies Act 1956, or Companies Act 2013. The applicant must submit a specific commitment letter from the donor which includes the amount of contribution given and the purpose for which it was given to the ministry of Home Affairs. Some conditions need to be met when the Indian recipient organization and a foreign organization that is donor have common members - the chief functionary of the recipient must not be the part of the foreign donor organization and at least 51% of members of the recipient governing body should not be the members off the donor organization. If the donor is an individual then he cannot be the chief functionary of the recipient organization and at least 51% of the governing body of the recipient organization cannot be closely related to the donor.


The applicant Registering for prior permission must not be Benami and should not have been convicted or prosecuted for creating communal tension or disharmony, should not have been found guilty of diversion or bad utilization of funds. If the applicant accepts the foreign contribution, he should make sure that it does not prejudice or affects the sovereignty and integrity of India, friendly relations with any foreign state, the public interest, harmony between different social, regional groups, cast, linguistic common racial, religious Communities.

 

The applicant can apply for prior permission or grants of registration through an online form. He has to submit form FC- 3.


For registration, the applicant will be required to submit the signature of the chief functionary in the JPG file and documents like trust deed or self-certified copy of registration certificate of Association. Memorandum of Association and Article of Association that shows the aims and objects of Association needs to be self-certified and copy of relevant pages needs to be submitted. The activity report and audited statement of account for the last 3 years will be required to be submitted.


For prior permission, the applicant will be required to submit the signature of the chief functionary in a JPG file and a self-certified copy of the trust deed. The applicant is required to submit the duly signed commitment letter from the donor.


FC- 3 is a form that is an application for FCRA registration, prior permission, and renewal of FCRA registration. FC- 4 is 5 for annual returns and FC- 5 is an application that seeks permission for the transfer of foreign contribution to another unregistered person. FC- 6 is for intimation of change of name, address, bank details, key members, and for intimation of quarterly receipt of the contribution, the form is also filled for annual returns of assets and liabilities by Association.

 

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.

Courtesy/By: Deepshikha Thakur | 2021-01-02 21:22