FCRA refers to Foreign Contribution Regulation Act. NGOs require this form of registration in order to ensure that they can receive contributions from foreign countries with some tax exemptions. The demand for this particular registration has increased with the increased need to provide for the welfare of the society and for the poor.
However, did you know that there are two types of FCRA registration? This blog is going to discuss these types and their eligibility.
Types of FCRA registration:
The two types of FCRA registration are as follows:
- Prior Permission Certificate: This sort of certificate is possible after one year
- Permanent Certificate: It is available for a span of 5 years.
Criteria for each type of Registration
- Prior Permission: Following is the eligibility criteria for the prior permission certificate:
- This Non-Governmental Organization should be running for at least one year.
- The NGO has to provide a list of foreign donors, along with the donor’s credentials. This information entails the following:
- Address of the donors
- Designation of the donors
- Cause for which the donors are contributing
- The NGO should have to specify the actual amount of money that it has received from the foreign contributors within the registration form.
- Permanent Certificate: This particular form of registration is valid for up to 5 years, and has the following criteria:
- The Non-Governmental Organization should have been in business for at least 3 years.
- The NGO should submit the annual report for the last three years along with an audit report for the same timeframe.
- Other documents that that NGO should submit are:
- Pan Card
- The By-Laws
- The MOA and the AOA
Benefits of FCRA registration
With FCRA registration on its side, a section 8 company/NGO/public trust can reach out to international bodies like the following for donations:
- British High Commission
- Infinity Foundation
- Ford Foundation
- Canadian High Commission
- New Zealand High Commission
- Japanese Embassy
- European Commission
Now, that you know that there are two types of FCRA registration. Which one would you like to opt for? Whatever you choose, just remember-Registrationwala is here to aid you through the entire process and can avail you this registration at an affordable price.