The Foreign Contribution (Regulation) Act (FCRA) is a legislation in India that regulates the acceptance and utilization of foreign contributions by individuals, associations, and organizations. Any organization that intends to receive foreign contributions in India needs to register under FCRA. In this article, we will discuss the step-by-step process to apply for an FCRA license.
Before applying for an FCRA license, the applicant needs to ensure that they meet the eligibility criteria. The applicant must be registered under one of the following acts:
- Societies Registration Act, 1860
- Indian Trusts Act, 1882
- Companies Act, 2013
Additionally, the applicant must have been in existence for at least three years and should have carried out significant work in their field of operation.
The next step is to gather the necessary documents for the application. The following documents are required for an FCRA license:
- Copy of registration certificate under the relevant act
- Memorandum of Association (MOA) and Articles of Association (AOA)
- Latest audited financial statements
- Annual activity report for the last three years
- Details of the key functionaries of the organization, including their address and contact details
- Bank account details
- Declaration signed by the President/Secretary of the organization
Once the eligibility criteria and documents are in place, the applicant can proceed with the application process. The following steps need to be followed:
- The applicant needs to register themselves on the FCRA online portal by providing the necessary details and creating a login ID and password.
- The applicant needs to fill in the FCRA application form online, providing all the necessary details.
- The applicant needs to upload the required documents in the prescribed format.
- The applicant needs to make the payment of the prescribed fee online.
- The application needs to be submitted online.
Processing of Application
Once the application is submitted, it is reviewed by the FCRA department. The department may ask for additional information or documents if required. The application is also scrutinized by the security agencies to ensure that the foreign contribution is not used for any illegal activities.
Issuance of FCRA License
If the application is found to be in order and meets all the requirements, the FCRA license is issued to the applicant. The license is valid for a period of five years and can be renewed thereafter.
In conclusion, obtaining an FCRA license is a crucial step for any organization that intends to receive foreign contributions in India. By following the above-mentioned steps and ensuring that all the necessary documents are in order, the applicant can apply for and obtain an FCRA license in a hassle-free manner.