About FCRA Registration for NGO
FCRA stands for the Foreign Contribution Regulation Act, a law enacted by the Government of India to regulate foreign donations to non-profit organizations in India.
FCRA registration is mandatory for non-profit organizations that receive foreign contributions or donations. It enables NGOs to legally receive foreign funds for their social or charitable activities.
Without FCRA registration, foreign donations are prohibited. Violations can lead to seizure of funds and legal consequences, causing financial and reputational damage to the organization.
The registration ensures transparency and accountability, as the government monitors the receipt and utilization of such funds.
The process involves thorough verification of the NGO’s legal, financial status, and objectives to ensure lawful use of funds.
In summary: FCRA registration is essential for NGOs in India to receive foreign donations legally, build trust, and maintain regulatory compliance.
Note: After the 2005 amendment in the Companies Act, the requirement for minimum paid-up capital for private companies has been removed.
DOCUMENTS REQUIRED
Document Requirement for FCRA Registration for NGO
The following documents are required for FCRA registration:
- Registration Certificate: Under Societies Registration Act, 1860 / Indian Trusts Act, 1882 / Section 8 of Companies Act, 2013.
- MOA and AOA: Copies of Memorandum and Articles of Association.
- Audited Financials: Audited financial statements for the past 3 years.
- Bank Details: Copy of bank account statement for the last 6 months.
- Activity Report: Detailed activity report covering objectives and projects undertaken.
- List of Governing Body: Names, addresses, and contact details of governing body members.
- Foreign Contribution Details: If received earlier, furnish source, amount, and purpose.
- FCRA Declaration: Confirm the organization is not blacklisted or debarred.
- Other Certificates: PAN, TAN, and other registration documents.
REGISTRATION PROCESS
Process of FCRA Registration for NGO
- Preparation of Documents: As mentioned above, gather all required documents and reports.
- Online Application: Apply through the official FCRA Portal.
- Fee Payment: Pay the prescribed fee through the online portal.
- Verification: Ministry of Home Affairs (MHA) will verify the submitted information and may seek clarifications.
- Approval: Upon successful verification, the MHA grants FCRA registration, valid for 5 years.
Post-Registration Compliance
- Separate Bank Account: Maintain a separate bank account for foreign contributions.
- Annual Returns: File electronically within 9 months of the financial year end.
- Prior Permission: Obtain permission for receiving funds from a new foreign source.
- Purpose-Based Utilization: Use funds only for the intended purpose.
- Annual Audit: Submit audit report with annual returns to MHA.
- Renewal: Apply for renewal 6 months before expiry.
- Other Law Compliance: Ensure adherence to PMLA, Income Tax Act, etc.
Non-compliance can lead to cancellation of FCRA registration. NGOs must maintain proper records and timely filings.
Top 10 Advantages of FCRA Registration
- Eligibility for Foreign Funding: Legally receive funds from overseas donors.
- Diversified Funding Sources: Less dependence on domestic grants.
- Increased Financial Support: More resources for impactful initiatives.
- Capacity Building: Invest in training, technology, and infrastructure.
- Credibility: Foreign donors prefer FCRA-registered NGOs.
- Global Best Practices: Adopt international standards and models.
- Partnerships: Collaborate with global NGOs and institutions.
- Autonomy: More independence in operations.
- Transparency: Structured reporting builds donor trust.
Fulfillment of Legal Requirements: FCRA registration ensures NGOs follow all rules and regulations. Partner with Registration Guru to simplify your FCRA registration journey. Our experts assist with documentation, filing, and compliance management.