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FCRA Registration under Foreign Contribution (Regulation) Act, 2010

Foreign Contribution (Regulation) Act, 2010 (FCRA) came into effect from May 1, 2011. This Act was created to regulate the acceptance and utilization of foreign contribution or foreign hospitality by certain individuals or associations or companies and to prohibit acceptance and utilization of foreign contribution or foreign hospitality for any activities detrimental to the national interest and for matters connected therewith or incidental thereto.

The main focus of this Act is to make sure that the foreign contribution and foreign hospitality are not used to influence electoral politics, public servants, judges and individuals working in the important locations of nationwide life such as reporters, printers and publishers of newspapers and so on.

Acceptance of Foreign Contribution

The Act specifically prohibits certain persons from accepting any foreign contribution in any form from outside the territories of India. While there are certain associations which are allowed foreign contribution subject to the approval of the Central Government. Following is the classification to better understand who are allowed to accept Foreign Contribution and who all are prohibited from accepting the same:

🚫 Prohibited Persons
  1. Candidate for Election
  2. Correspondent, columnist, cartoonist, editor, owner, printer or publisher of a registered newspaper
  3. Judge, Government servant or employee of any corporation or any other body controlled or owned by the Government
  4. Member of any Legislature
  5. Political party or office-bearer thereof
  6. Organisation of a political nature
  7. Association or company engaged in the production or broadcast of audio news or audio visual news or current affairs programmes through any electronic mode, or any other electronic form
  8. Correspondent or columnist, cartoonist, editor, owner of the association or company
✅ Associations Allowed by Approval
  1. Trust
  2. Societies
  3. NGOs
  4. Section-8 Companies

Approval for Accepting Foreign Contribution

Section-11 of the Act talks about the approval for accepting foreign contribution. It says that organizations who are working for definite cultural, social, economic, educational or religious programs (viz. NGOs, Trust, Societies), before accepting any foreign contributions shall have to obtain a certificate of registration from the Central Government under the Act.

A person can either seek registration from the Central Government for accepting foreign contribution or if not registered can obtain prior permission which will be valid for the specific purpose for which it is obtained and from the specific source.

For obtaining registration under the FCRA, the applicant association should be registered under any of the following Acts:

A certificate of registration can be obtained by the Central Government by filling an application for FCRA Registration or FCRA Prior Permission, as the case may be, in E-Form FC-3 along with supporting documents and prescribed fees.

Registration Procedure

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Obtaining NGO Darpan ID

Those who are applying for FC-3 (FCRA registration or FCRA Prior Permission) are required to register with Darpan Portal of Niti Aayog to obtain a Darpan ID by filling up certain details of the entity and its members.

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Opening of FCRA Bank Account

An exclusive FC Account is required to be opened which shall be exclusively for the purpose of accepting foreign contribution. The Bank with which such account needs to be opened should be a specifically PFMS integrated bank who are eligible for opening of such accounts. List of banks integrated with PFMS is available at: https://fcraonline.nic.in/fc_bank_list.aspx

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Information / Documents Required for Registration

The following information/documents are required for the purpose of registration under FCRA:

  • Details of the association
  • Registration Certificate / Trust Deed (Self Certified)
  • Memorandum of Association / Articles of Association (Self-Certified)
  • Details of members with KYCs
  • Activity Report for last three years
  • Audited statement of accounts (last 3 years)
  • JPG file of signature of the chief functionary
  • Duly signed Commitment Letter from Donor (prior permission only)
  • Certificate from Registrar of Newspapers (prior permission only, if applicable)
  • Details of the FCRA Bank Account
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Filling of Prescribed Form

Once all the documents and information have been collected, the next step is to file the E-Form FC-3. Fees is required to be paid online while submitting the form:

INR 2,000/-
For Registration
INR 1,000/-
For Prior Permission
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Obtaining Certificate of Registration

After submitting the form, the Central Government scrutinizes the same and if found all the documents in order and if satisfied by the information provided by the association, Certificate of Registration is granted to the association after which the association can accept the foreign contribution through the FC Bank Account opened for the same.

Registration Compliances under FCRA

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Filing of Annual Returns

Every association accepting foreign contribution who have obtained certificate of registration under the Act, are required to file Annual Returns online for every financial year within a period of nine months from the closure of the year i.e. by 31st December each year, in E-Form FC-4 till the amount of foreign contribution is fully utilized.

💬
Intimation of Receipt of Foreign Contribution

This is applicable in the following cases:

  • Receiving foreign contribution from a relative by way of a gift
  • Receiving foreign contribution from a relative by way of Articles
  • Receiving foreign contribution by way of securities
  • Foreign contribution received by a candidate for Election

Any person receiving foreign contribution in excess of INR 1,00,000/- or equivalent thereto in a financial year from any relative shall inform the Central Government in E-Form FC-1 within 30 days from the date of receipt.

For contribution received in the form of Articles or securities, intimation is required in E-Form FC-1 within 30 days. For foreign contribution received by a candidate for election, the same shall be furnished in E-Form FC-1 within 45 days from the date of nomination.

✈️
Prior Permission for Foreign Hospitality

Following persons, while visiting any country or territory outside India, who wish to avail any foreign hospitality shall be required to take prior permission from the Central Government:

  • Member of a Legislature
  • Office-bearer of a political party
  • Judge
  • Government Servant
  • Employee of a corporation or any other body owned or controlled by the Govt.

Such permission shall be taken by filling up E-Form FC-2 at least 15 days before the proposed date of outward journey.