FCRA or Foreign Contribution Regulation Act is an overseeing legal paradigm that watches over the amount, and the intent of foreign contribution into Indian trusts, and section 8 companies.
Without it, your NGO can’t acquire foreign donations. In this blog, we tell you about the FCRA online registration, a process through which you can empower your NGO through foreign donations.
Why FCRA registration?
The Foreign Contribution Regulation Act came into force in 2010. Its goal is to provide oversight to the foreign contributions poured into Indian trusts, NGOs and other section 8 companies. But what’s the need of such oversight. The reasons are three fold:
- Foreign contribution needs to be evaluated properly. Due to the perpetually-floating foreign exchange rate, it’s difficult to evaluate how much money has been donated by an independent organization. FCRA intends to step in and make it easier.
- Foreign donations, in unchecked, can manipulate domestic industries in subtle ways. Such interference can lead to threats to socio-economical and political foundation of the country. FCRA provides an oversight by analyzing the intent and the flow of foreign contribution so that it’s not misused.
- Extensive auditing is possible. In order to analyze the intent and the amount of Foreign contribution, FCRA registration allows the Reserve bank of India and conduct nuanced auditing which is thorough and more than efficient.
Who needs to get FCRA registration?
Following bodies need to get FCRA registration:
- Any trust, NGO or section 8 Company who intends to receive foreign donations.
- Any such trust that have spent more than INR 10,00,000/- on its projects.
Procedure of FCRA registration
Following are the steps to acquire FCRA registration:
- Gather documents: Accumulate and self-certify the following documents to fill FCRA online registration form:
- Certificate of incorporation of the section 8 compay/trust deed of the Trust
- Memorandum of Association/ Articles of Association
- A report that details the NGO’s activities during the past three years.
- Copies of financial statements (audited) for the past three years.
- Begin the online process: Once you’ve gathered and assessed the documents mentioned above, go online to start the registration process:
- Go to the FCRA portal
- Click on FCRA registration onlne
- Register at the portal
- Enter all the mandatory details.
- You’ll then get User ID and Password. This will help you check the FCRA application status online once you file the application.
- Login to the portal using the credentials given to you
- Click on I am applying for and choose FCRA from the drop down menu.
- Proceed with registration process
- Start entering the details in the order you’re asked.
- Upload the documents.
- Finalize the submission.
- Pay the requisite FCRA registration fees.
Once you have filed the application, you can go to the portal, login and conduct an FCRA registration check online. Monitor it constantly to see if your application is on the verge of being accepted or not.
Obviously, we haven’t bored you with the whole obtuse process of FCRA registration. That’s our job. We can help you get your FCRA registration on record time, and with minimum hassle. For more information, contact our experts.