How to Get FCRA Registration: Step-by-Step Process Explained

If you’re a non-governmental organisation (NGO), trust, or any other entity planning to receive foreign donations in India, FCRA (Foreign Contribution Regulation Act) registration is crucial. The FCRA certificate and FCRA license are necessary to ensure compliance with the guidelines set by the Indian government. Here’s a detailed step-by-step process for obtaining FCRA registration.

What is FCRA Registration?

FCRA registration is a process where an NGO or any organisation can apply for approval to receive foreign contributions. This registration ensures that foreign donations are used for the right purpose and not for activities that may jeopardise India’s sovereignty or national interest.

Why Do You Need an FCRA Certificate?

The FCRA certificate acts as proof that your organisation is legally authorised to receive foreign funds. Without it, receiving foreign contributions or donations is illegal and could result in penalties or suspension of your operations.

Organisations that are registered under the FCRA will receive an FCRA licence, which enables them to legally accept foreign funds. The license also mandates proper usage of funds in compliance with the regulations.

Eligibility Criteria for FCRA Registration

To be eligible for FCRA registration, your organisation must meet the following conditions:

1. Registered NGO/Trust/Society: Your organisation must be registered in India as an NGO, society, or trust.

2. Minimum Three Years of Operation: The organisation must have been in existence for at least three years and must have done significant work in the field of social, economic, or cultural activities.

3. Proper Financial Record: Your organisation must have an audited financial record for the last three years.

4. No Political Involvement: FCRA registration is only available for organisations not involved in any political activities.

Step-by-Step Process for FCRA Registration

Step 1: Prepare the Required Documents

Before applying for FCRA registration, gather all necessary documents, such as:

• Certificate of registration of the NGO.
• A copy of the organisation’s Memorandum of Association (MOA).
• Audited balance sheet and income-expense details for the past three years.
• List of office bearers or governing body members.

• Bank details, including a certified copy of a bank account where foreign contributions will be received.

Step 2: Online Application on the FCRA Portal

Visit the official FCRA online portal on the Ministry of Home Affairs website and register your organisation. Fill in the required details and upload all the documents. The online portal also allows you to track the status of your application.

Step 3: Application Review by the Government

Once your application is submitted, the Ministry of Home Affairs (MHA) will review it to ensure that your organisation meets all the eligibility criteria. This review process may take several weeks, depending on the volume of applications.

Step 4: FCRA License Issuance

If everything is in order, the MHA will approve your application and issue the FCRA certificate along with the FCRA license. This will officially authorize your NGO or organization to receive foreign contributions and use them for the specified purposes as per the guidelines laid out in the FCRA.

Step 5: Compliance and Annual Filings

Once your organisation has received the FCRA certificate and license, it must comply with the requirements set by the FCRA. This includes:

• Annual Returns: NGOs must file annual returns regarding the foreign funds received and their usage.

• Maintain Separate Bank Accounts: Foreign contributions should be maintained in a separate bank account.
• Regular Audits: The organisation must undergo regular audits and ensure that all funds are utilised for approved activities only.

Conclusion

FCRA registration is a critical process for any organisation looking to receive foreign donations in India. With the FCRA certificate and license, you can legally accept and manage foreign contributions. However, it’s important to comply with the regulations and file annual returns to maintain your registration status. If you need guidance, it’s advisable to seek professional assistance to ensure the registration process goes smoothly and is completed in a timely manner.

By following these steps, you can easily obtain FCRA registration and ensure that your organisation operates transparently and in compliance with Indian law.