FCRA Registration

Registration under Foreign contribution Regulation Act (FCRA) to get Foreign Grants

Chanakya NGO Consultancy provides FCRA (Foreign contribution Regulation Act) Registration Consultancy to NGOs who need foreign funds and grants. Foreign contribution Regulation Act or FCRA law is implemented by the Ministry of Home Affairs, Government of India is a tool necessary to regulate and monitor the flow of foreign funds making sure that they do not interfere in social, political or cultural structure of the country. People working in national interest like journalists, politicians, public servants, judiciary, newspaper publishers and editors should not be affected in any way by the use of this money. FCRA takes care of all these concerns by managing receipts of foreign contributions extended to Indian areas from abroad.

Foreign sources include funding agency of such belonging to foreign country; any international agency that does not belong to the United Nations (or any of its specialized agencies like the World Bank, International Monetary Fund); foreign company; multi-national corporation; corporations incorporated in a foreign country; trusts/societies/ trade union or other associations of individuals formed or registered in a foreign country and any company belonging to a foreign citizen. Any company within the realms of the Companies Act 1956 with more than one-half of the nominal value of its share capital held, either singly or in the aggregate, by the Government or the citizens of a foreign country is also considered foreign source.

Foreign contribution consists of donations, delivery by any foreign source other than personal gifts to a person. Money (in any currency) as well as securities contributed by any foreign body to any association / company in India is also considered as foreign contribution. An important point to remember here is that gift/money to a person /joint Hindu family/an association or company registered under Section 8 of Company Act will not be counted as foreign contribution. Contributions made by Non-Resident Indians (NRIs) from his personal savings, through the normal banking channels, are not treated as foreign contribution. Donation given by an individual of Indian origin and having foreign nationality is treated as foreign contribution. This will also apply to PIO / OCI cardholders. However, this will not apply to ‘Non-resident Indians’, who still hold Indian citizenship.

Funds received from organizations of the United Nations, World Bank and some other International agencies are not considered as foreign contribution. List of such organizations which are not treated as ‘foreign source’ is available on the website fcraonline.nic.in. NGOs having a definite economic, cultural, educational, social and religious program are entitled for the FCRA registration process. NGOs can apply for FCRA even if they are having any foreigner as its member. But the authorities in that case become more strict and vigilant in processing a FCRA application. However, there are limitations and terms about the board members have a foreigner. For the NGOs who want to get and utilize the foreign funds for social welfare work the FCRA Registration and Prior Permission are required and applicable.

However it is hard for a NGO to get a FCRA when it is having a foreigner as a trustee as there have been hardly few instances. There are few procedures and complicated situations that are needed to looked at when an organization is claimed to be a FCRA. There are legislations in India which is related to this and need to be followed. So it is better to understand the rules and the regulations. In the FCRA registration process, all need to be taken care of.

There are 2 types of Foreign Contribution Regulation Act registrations:

• Prior consent certification
  Prior permission is granted for receipt of a specific amount from specific donor/donors for carrying out specific activities/projects.
  
• Long-term Registration Certificate
  For Prior Approval the NGO should provide the list of foreign benefactors together with their addresses, classifications and cause for donation. NGOs also need to declare the overall quantity of cash being received as foreign donation. For long term FCRA registration (valid for 5 years) the NGO must be at least three years old. The NGO will have to send last 3 years of annual and audit report with a copy of pan card. The NGO must have spent at least Rs.15, 00,000/- over the last three years on the social welfare programs and activities, excluding administrative expenditure. Statements of Income and Expenditure, duly audited by Chartered Accountant, for last three years must also be submitted.

FCRA Renewal

After registration of 5 years you will have to apply for the renewal of FCRA license with the Home Ministry who will look into your work and achievements. If they find it exemplary and good they would grant you restoration.

This complete process requires extensive legal paperwork where you will need help of experts like Chanakya whose expert group members know how to provide documentation support in order to gain recognition for FCRA. For any kind of help or clarification like NGOs already having FCRA still and need the help in some regard so they can contact Chanakya team. Chanakya consultants would help NGOs in the best they that their matter can resolve through documentation consulting.

To understand more about FCRA and the entire registration process please click here

Consultancy Service for FCRA Registration

• You just need to hand over us all the essential documents and we will fill up all the forms for your NGO and apply for FCRA registration be it any form prior one or long term.
• In case if any other documents required including Annual Reports, Audit Reports then we can prepare for you. In case of preparation the other documents in addition to preparation, submission of document and following of the FCRA proceeding the documentation consultancy charges are additional.
• We shall file activity report, Activity Report indicating details of activities during the last three years; copies of relevant audited statement of accounts for the past three years reflecting expenditure incurred on aims and objects of the association and on administrative expenditure on your behalf.
• In case of renewal we shall present your work and NGO profile in an exemplary way to win continuation of FCRA status.
• If the applicant person or group or organization sounds suspicious for any religious conversion activities, political intention or religious faith conversion or suspected to affect the sovereignty and integrity of nation India; in that case we do not provide consultancy and attend such groups, persons or organizations.
• We provide consultancy service to only those who are and shall following all the applicable and required terms, conditions and parameters of Ministry of Home Affairs and laws, rules and regulations of Government of India.

The documents and information required for FCRA Registration:

• Self attested (by Chief Functionary) Copy of Registration Certificate of Society/ Non Profit Company and Trust Deed of Trust.
• Self attested (by Chief Functionary) copy of Memorandum of Association with Rules and Regulation of Society/ Memorandum of Association and Article of Association of Non Profit Section 8 Company/ Trust Deed of the Trust.
• Email ID of NGO.
• Copy of PAN Card of the NGO – Society / Trust / Non Profit Company.Phone number of the office.
• Copies of the audited statements of accounts for the last 3 years along-with Income Tax Returns.
• Copies of the Annual Report of last three years.
• Bank Account Information of NGO.
  • Bank Name.
  • Account Number.
  • Bank Address.
• List of General body and Governing body members.
  • Names of Members and Office bearers with designations.
  • Father’s Names of the members.
  • Address of members.
  • Adhar Card Numbers of members.
  • PAN Card numbers of members.
  • Occupation of members.
  • Designation of members in Executive Body.
  • Email ID of members.
  • Mobile Numbers of members.
  • Affidavit from all office bearers of Executive body in Proforma of MHA.
  • Directors or office bearers of the NGO have neither been convicted under any law for the time being in force nor any prosecution for any offence is pending against any of them.
• Name of the chief functionary.
  • Email ID.
  • Mobile Number.
  • Signature of the chief functionary in Jpg file.
• Copies of 80G and 12A Registration Certificates.
• Copies of other Registration Certificates.
• NGO Darpan Unique ID from NGO Darpan portal of NITI Ayog.
• Dedicated FCRA Account in the State Bank of India, New Delhi Main Branch.
• Fee of Rs. 10,000/- is to be paid online through payment gateway.
• Minimum expenditure (excluding the administrative expenditure) of the minimum threshold of Rs. 15.00 lakh spent during the last three years.
• Applicant must not be editor or journalist of any newspaper or social media news channel operator.

Eligibility criteria for grant of prior permission

• Commitment and Permission Letter from Donor agency that they are providing certain fund to that NGO, indicating the amount of foreign contribution and the purpose for which it is proposed to be given.
• Duly signed Commitment Letter from Donor/ Donor Agency/ Donor Company.
• Fee of Rs. 5000/- is to be paid online through payment gateway.
• Project Report for which Foreign Fund – Contribution will be received.
• Before completing minimum 3 financial years NGOs can apply for the prior permission if they have specific donor.
• Chief Functionary of the recipient NGO should not be officially associated with the donor organization.
• At least 75% of the office-bearers/ members of the Executive body of the NGO who is recipient should not be members/employees of the foreign donor agency of company.
• If foreign donor is a single person, then that donor must not be the office bearer of the NGO.
• When the foreign donor is individual then at least 75% members of that recipient NGO must not be the family members or relatives of that donor.
• Foreign grant must not affect any election to any Legislature.
• Must not be concerned or related or included directly or indirectly in activities aimed at conversion from one religious faith to another.
• Must not affect the sovereignty and integrity of nation India; and the security, strategic, scientific or economic interest of the nation and the public interest.
• Must follow legal and ethical parameters of India and Indian culture.
• Most of these criteria/terms are also applicable for the long term regular FCRA Registration.