Master the FCRA Prior Permission Registration
FCRA stands for Foreign Contribution (Regulation) Act, 2010. It’s a law in India that regulates how Indian NGOs (Non-Governmental Organizations) can receive foreign funding. There are two main ways an NGO can accept foreign contributions:
- FCRA Registration: This is a more comprehensive registration process that allows an NGO to receive foreign contributions directly. It involves stricter regulations and reporting requirements.
- FCRA Prior Permission: This is a permission granted on a case-by-case basis for a specific foreign contribution. It’s typically used when an NGO isn’t FCRA registered but needs to receive a one-time or specific foreign donation.
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Here’s a breakdown of FCRA Prior Permission:
Who Needs It?
- – Indian NGOs that are not registered under FCRA but want to accept a specific foreign contribution.
- – FCRA-registered NGOs may also need prior permission if the foreign contribution is for a purpose outside their registered objectives.
Under which act the registration of FCRA Prior Permission formed ?
The registration for FCRA prior permission is formed under the Foreign Contribution (Regulation) Act, 2010 in India.
What are the benefits of FCRA Prior Permission Registration ?
The benefits of obtaining FCRA prior permission include:
- Legal Compliance: Ensures compliance with the Foreign Contribution (Regulation) Act, 2010, and its regulations regarding the receipt of foreign contributions.
- Project-Specific Funding: Allows organizations not eligible for FCRA registration to receive foreign funds for specific projects or activities after obtaining prior permission.
- Transparency: Enhances transparency as organizations need to submit detailed project proposals and budgets for approval, ensuring clarity on fund utilization.
- Flexibility: Provides flexibility to receive foreign contributions for a particular project without the need for full FCRA registration.
- Approval Process: Facilitates a structured approval process by the Ministry of Home Affairs for receiving foreign contributions, ensuring accountability and oversight.
- Compliance Monitoring: Enables monitoring of foreign fund utilization by the government to prevent misuse and ensure funds are used for the intended purposes.
Who is eligible for FCRA Prior Permission Registration ?
Organizations may obtain FCRA registration or receive foreign contributions through the “prior permission” route if they seek foreign contributions for definite cultural, social, economic, educational, or religious programs. It is preferable for an FCRA applicant to be a Trust, Society, or a Section 8 Company.
Additionally, the entity seeking registration should have spent at least Rs.10,00,000/- over the last three years on its aims and objects, excluding administrative expenditure. Statements of Income & Expenditure, duly audited by Chartered Accountant, for last three years are to be submitted to substantiate that it meets the financial parameter.
What is the process of FCRA Prior Permission Registration ?
The process of FCRA prior permission registration is as follows:
- – Create a Login ID
- – Fill form FC-3A which is a FCRA Registration Form
- – Upload required documents for registration
- – Pay Fees @ 10,000 and print The application.
- – The Ministry will review the application and if everything is in order, prior permission will be granted.
- – Once you receive permission, you can follow FCRA guidelines to receive foreign contributions.
What are the required documents for FCRA Prior Permission Registration ?
- Registration certificate of association
2. Memorandum of association / trust deed.
3. Activity report of last three years
4. Audited statement of accounts for the last 3 years.
5. Associations has to upload affidavit.
6. Bank account details
7. PAN Card
8. FCRA Registration certificate
What we offer
- Consultation: Black Tie Legal Service India LLP can explain the FCRA regulations and determine if FCRA Prior Permission is the right option for your NGO. They can also answer questions about eligibility and the process.
- Document Assistance: We help you gather and organize the necessary documents, ensuring they meet the FCRA online portal’s requirements.
- Application Guidance: Companies may provide guidance on filling out the online application form (Form FC-3B) on the FCRA portal.
- Liaison with Government Departments: In some cases, companies may act as a liaison with the Ministry of Home Affairs, potentially expediting the process or clarifying any issues.