Foreign Contribution Regulation Act

Page 1

A GUIDE TO REGISTER UNDER

FOREIGN CONTRIBUTION REGULATION ACT Prepared by Swarit Advisors


FCRA REGISTRATI ON IN INDIA

OVERVIEW The world, in the present scenario, is more focused towards environmental and social causes. Businesses nowadays, apart from their primary objective of profit-making, are actively involved in activities that promote economic, social, cultural, and environmental prosperity and growth.


HEWES AND PARTNERS A BACKGROUND Today the world today is so well connected and linked that accessibility to any part of the world is very easy. Transactions between places, people, and countries take place on a daily basis. As a result, the flow of the foreign currency in and out of every country is now absolutely natural and an absolute commonality.

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The volume at which these foreign currency transactions are carried on is at a very high level.As a result, it is impossible to keep the track of the outflow and inflow of foreign currency in a regularized manner. This brought the need for the coming up of the Foreign Contribution Regulation Act, 2010, in India.

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OBJECTIVE OF THE FCRA IN INDIA REGISTRATION OBJECTIVE - 1

OBJECTIVE - 2

To regulate the acceptance and utilization of the foreign hospitality or foreign contributionby certain individuals, companies, or associations.

To prohibit the acceptance and utilization of the foreign hospitality or foreign contribution for any unfavorable activities to the national interest and for the matters related to it in addition to that of the incidental.


ELIGIBILITY CRITERIA FOR FCRA REGISTRATI ON IN INDIA

FOR NORMAL REGISTRATION • Required Registration under the Societies • • •

Registration Act, 1860. Priorily Registration Under Indian Trusts Act, 1882. Registered as a Section 8 Company as per the Companies Act, 2013 The applicant is required to have spent a minimum of Rs. 10,00,000 in the last three years towards achieving its primary objectives The applicant is required to submit all the copies of the financial statements of the last 3 years


The Prior Permission method of FCRA Registration is ideally suited for those organizations which are registered newly and would like to receive some foreign contributions. Such a Registration is granted for the receipt of a specific amount from any specific donor for carrying out the specific activities or projects.

FOR PRIOR PERMISSION REGISTRATI ON


NON-ELIGIBLE ENTITIES FOR FCRA • THE APPLICANT IS BENAMI OR FICTITIOUS. • AN APPLICANT AGAINST WHOM A PROSECUTION IS C O N D U C T E D F O R I N D U L G I N G I N A N Y U N FA I R ACTIVITY; • AN APPLICANT CONVICTED FOR ANY COMMUNAL TENSION MADE IN ANY AREA. • THE ENTITY HAS UTILIZED SOME FOREIGN CONTRIBUTION FOR ITS PERSONAL USE; • AN ENTITY IS DEBARRED FROM ACCEPTING ANY FOREIGN RECEIPTUNDER ANY PROVISION OF THE L AW ; • A N Y S U C H A C C E P TA N C E O F T H E F O R E I G N G R A N T T H AT A F F E C T S T H E E N T I T Y P R E J U D I C I A L LY ; • THE SOVEREIGNTY OF INDIA; • IN THE INTEREST OF THE PUBLIC; • T H E R E L AT I O N S H I P W I T H A N Y S TAT E I N I N D I A .


DOCUMENTS REQUIRED FOR FCRA REGISTRATION 1 Self-certified copy of the certificate of incorporation, trust deed, or any other relevant certificate held by such an entity;

2 PAN of the NGO

3

4

Copy of Memorandum of Association and Articles of Association and institutions;

Signature of the chief judiciary in the JPG format;

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5 A complete detailed report on the activities of the preceding 3 years;

7 Certified True Copy or CTC of the resolution passed by the governing body authorized by the NGO;

6 Audited copy of the financial statement, Income-Expenditure details, P&L Account, and cash flow statement of the preceding 3 years;

8 Certificate obtained under the Sections 80G and 12A of Income Tax Act. Sections 80G and 12A provide certain tax exemption to the NGOs under the Incometax Act of India.

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Source: https://swaritadvisors.com/fcra-registration

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