FCRA RENEWAL FOR TRUSTS OR NGO’S

Foreign Contribution Regulation Act (FCRA) regulates the foreign contribution.

1. WHAT IS FCRA? Foreign Contribution is defined under section 2 (1) of FCRA, 2010. It means donation, delivery or transfer made by any foreign source. However, the contribution made by a citizen of India living in another country or NRI from his personal savings through normal banking channels is not treated as foreign contribution.
2. WHO CAN RECEIVE SUCH CONTRIBUTION? Persons or entities having a definite cultural, economic, educational, religious or social program can receive foreign contribution after it obtains prior approval of Central Government.
3. CRITERIA FOR FCRA REGISTRATION?
• It should be registered under Society Registration Act, 1860 or Indian Trusts Act, 1882 or section 8 of Companies Act, 2013
• Be in existence for at least 3 years & has undertaken reasonable activity in its chosen field for the benefit of society.
• Association should have spent at least 6, 00,000 over last 3 years on its activities, excluding administrative expenses.
•  Statement of Income & expenditure duly audited by a CA for the last 3 years to be enclosed to substantiate meeting of financial parameters.
4. RETURN FILING? An association permitted to receive foreign contribution is required under law to maintain a separate set of accounts & records exclusively for the contribution received & utilized & submit an annual return, duly certified by a CA, giving details of receipt & purpose. It has to be filed for every financial year, within a period of 9 months from the closure of the year i.e. 31st December. Even submission of a NIL return is mandatory. For prescribed is FC-6.
5. TENURE? Initial registration is granted for 5 years.
6. RENEWAL TERMS? The application for renewal of the certificate shall be made to the Central Government in such form and manner and accompanied by such fee as may be prescribed. The Central Government shall renew the certificate, ordinarily within ninety days from the date of receipt of application for renewal of certificate subject to such terms and conditions as it may deem fit and grant a certificate of renewal for a period of five years: Provided that in case the Central Government does not renew the certificate within the said period of ninety days, it shall communicate the reasons therefore to the applicant: Provided further that the Central Government may refuse to renew the certificate in case where a person has violated any of the provisions of this Act or rules made thereunder.
7. FORM? Form FC-3 is filed online with Ministry of Home Affairs along with the relevant documentation before the expiry of the stipulated time.
8. DOCUMENTATION?
• Registration Certificate of the Association
• Memorandum of Association / Trust Deed
• FCRA Registration Certificate of Association issued by Ministry of Home Affairs before.
• Image of signature of Chief functionary & image of the seal of association in JPEG format.
9. CONSEQUENCE OF NON – FILING OF RENEWAL APPLICATION WITH MHA? The existing regulation under FCRA, 2010 will cease from the date of completion of the period of 5 years from the date of grant of registration, in such case association has to grant afresh for grant of registration.
10. FEES APPLICABLE? 500/-