Eligibility Criteria and Documents required to obtain FCRA Registration

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When it comes to contributions from international sources for environmental and social causes, the government has put in place a proper mechanism to track these contributions to avoid any illicit activities. These foreign contributions are governed by the Foreign Contribution (Regulation) Act, 2010 and rules and regulations made under. For accepting such contributions, the entity in India needs to obtain FCRA registration. Let’s understand how to obtain FCRA registration, eligibility criteria, documents required for FCRA registration and compliances thereof.

How to Obtain FCRA Registration?

For obtaining FCRA registration, the applicant needs to make an online application in Form FC-3A - Application for FCRA Registration. If the form is approved, the registration shall be granted for a period of 5 years following which it shall be renewed. The application for FCRA renewal shall be filed 6 months prior to the expiry of the registration in Form FC-3C.

Eligibility Criteria for Obtaining FCRA Registration

Before you begin with the FCRA registration process, you need to determine whether you are eligible to obtain FCRA registration. Following are the eligibility criteria for FCRA registration:

In the case of an application for registration, the person making the application has undertaken any reasonable activity in the chosen field that benefits the society for which the foreign contribution is being proposed to be used. Further, in case the application is for prior permission, the applicant has prepared or developed a reasonable project that benefits society.
The applicant must be registered under Section 8 of the Companies Act, 2013, Societies Registration Act, 1860 or the Indian Trusts Act, 1882.
He has not been convicted under any law for the time being in force. Further, there should be no prosecution for any of the offences remaining pending against him.
The acceptance of foreign contribution by the applicant shall not affect prejudicially:

The strategic, security, economic and scientific interests of the state
The integrity and sovereignty of India
Public interest
Friendly relations with any foreign state
Freedom and fairness of election of any Legislature
Harmony between different groups

The acceptance of foreign contributions by the applicant shall not endanger the physical safety or life of any person or lead to incitement of an offence.

Further, the person making the application for obtaining FCRA registration or prior permission:

Shall not be a benami or fictitious person
Has not been prosecuted or convicted for creating communal disharmony or tensions in any part of the country
Has not been convicted or prosecuted for getting indulged in the activities aimed at conversion through inducement or force from one religious faith to another whether directly or indirectly
Has not contravened any of the provisions of the FCRA act
Is not likely to divert foreign contributions for undesirable purposes or use them for personal gains
Is not engaged or likely to engage in the propagation of sedition or advocate violent methods to achieve its ends
Has not been prohibited from accepting the foreign contribution

The Central Government may require the applicants of FCRA registration or prior permission to furnish the Aadhaar numbers of all the directors, key functionaries and office bearers if they are Indian citizens. If they are foreigners, then a copy of the passport or the OCI card (Overseas Citizen of India) shall be provided. This is applicable for prior permission, new registration and renewal of FCRA registration.

Documents Required for FCRA Registration

Following are the documents required for FCRA registration:

Registration certificate of the applicant entity or association
Memorandum of Association and Articles of Association, if any
Trust deed, if any
Activity report for the previous 3 years
Audited financial statements for the previous 3 years
Affidavit of each key functionary of the entity or association
Signature of the chief functionary
Seal of the entity or association
Section 12A registration certificate

In nutshell

For contraventions of the FCRA Registration provisions or rules made, penalties have been stated under Section 33-39 act. It contains comprehensive provisions for penalties and imprisonment liable upon the nature of the offence.

FCRA Registration outlines thorough provisions and rules to ensure transparency and accountability in dealing with foreign contributions. It is mandatory to comply with the FCRA compliances in order to avoid strict penal actions.

I think now you know what is FCRA registration & its importance. Following were the details about FCRA registration. In case you need any assistance with respect to the FCRA registration process, feel free to contact the ASC Group.

Original Source - FCRA