RENEWAL OF FCRA REGISTRATION UNDER FCRA,2010

Introduction:

Foreign Contribution Regulation Act 2010 ‘FCRA‘, FCRA is enacted by the parliament, to consolidate the law to regulate the transaction of foreign contribution by the individuals or associations, or companies and also to prohibit acceptance and utilization of foreign contribution for any activities against the national interest. The main purpose of this act is to keep a check on foreign contributions. After the enactment of FCRA 2010, the government will prevent money laundering cases such as hawala, etc. Now all the association that gets foreign Donation need to register under FCRA.

An association/person, having a definite cultural, economic, educational, religious, or social program may accept foreign contribution by obtaining a certificate of FCRA registration from the Central Government. The association applying for FCRA registration –

• Must be a society registered under Societies Registration Act, 1860 or a trust registered under Indian Trusts Act, 1882 or a company registered under section 8 of The Companies Act, 2013, etc.
• Must be in existence for at least three years
• Must have spent at least Rs.15 lac during the last three years towards the activities for which registration applied for
• Must have undertaken reasonable activity for the benefit of the society, in the field for which the foreign contribution is proposed to be utilized

Who are prohibited persons to accept foreign contributions:

• member of any Legislature
• A political party or the office bearer
• candidate for election;
• correspondent, columnist, cartoonist, editor, owner, printer, or publisher of a registered newspaper;
• public servant, Judge, Government servant, or employee of any corporation or any other body controlled or owned by the Government

What are the documents required for FCRA  Registration:

(i) Self-certified copy of registration certificate/Trust deed etc., of the association.

(ii) Self-certified copy of Memorandum of Association(MoA)/ Article of Association(AoA)

(iii) Signature of the chief functionary

(iv) Activity Report indicating details of activities during the last three years.

(v) Copies of relevant audited statements of accounts for the past three years (Assets and Liabilities, Receipt and Payment, Income and Expenditure).

(vi) KYC documents of members.

Renewal of FCRA Registration:

FCRA registration certificate is valid for five years from the date of issuing. After every five years, one needs to renew their FCRA certificate.

According to section-16 of FCRA 2010, every institution that is registered under section-12 of the act needs to apply for registration under the form FC-3C, within six months before the expiry of the registered certificate. In case of non-renewal the existing registration under FCRA, 2010, will cease from the date of completion of the period of five years from the date of grant of registration and will not be eligible for receipt & utilization of foreign contribution. In such a case, the association has to apply afresh for a grant of registration.

Documents required for renewal

• Darpan id issued by NITI Ayog,
• Signature of Chief Functionary,
• Registration certificate of the association,
• Memorandum of Association/ Trust Deed,
• FCRA Registration Certificate of association issued by the Ministry of Home Affairs