The Foreign Contribution (Regulation) Act (FCRA) was established to regulate the acceptance and use of foreign donations by organizations in India. To maintain transparency, integrity, and accountability, organizations need to comply with the provisions under this Act. If your organization intends to receive foreign contributions, FCRA registration is a must. The process requires the submission of several documents to ensure the legitimacy and operational transparency of your organization.

This article outlines the crucial documents needed for FCRA registration and provides an overview of the process.

What is FCRA Registration?

FCRA registration allows organizations in India to legally accept foreign contributions for specific purposes. These purposes can include charitable, educational, social, cultural, religious, or scientific activities. Organizations that are registered under FCRA are bound to adhere to the guidelines set forth by the Ministry of Home Affairs (MHA). The registration helps ensure that foreign funds are used for lawful and effective purposes in the country.

Who Requires FCRA Registration?

Organizations involved in non-profit activities, such as NGOs, charitable trusts, societies, and Section 8 companies, must apply for FCRA registration if they wish to receive foreign donations. These contributions can come from foreign individuals, foreign companies, or foreign-based foundations. The FCRA registration is compulsory for such entities to receive and utilize foreign funds for their respective purposes.

Eligibility for FCRA Registration

Before proceeding with the documentation for FCRA registration, it is essential to ensure that the organization meets certain eligibility criteria:

1. Registration Status: The organization must be a registered trust, society, or Section 8 company under Indian laws.
2. Track Record: The organization should have been operational for at least three years, actively working in the intended field (social, educational, cultural, etc.).
3. Accountability: The organization should have a clean track record and must have utilized the funds in accordance with the objectives.
4. No Criminal or Violent History: The organization must not have a history of involvement in unlawful or illegal activities.

If your organization meets these criteria, you can proceed with the FCRA registration application and gather the required documents.

Documents Required for FCRA Registration

FCRA registration involves submitting a variety of documents to verify your organization’s compliance and legitimacy. Below is a list of essential documents that need to be provided during the registration process:

1. FCRA Application Form (FC-3)

The first step in applying for FCRA registration is filling out the FCRA application form, FC-3. This is a detailed online form available on the Ministry of Home Affairs (MHA) website. The form requires information about:

• The organization’s name, registration number, and date of establishment.
• The details of the governing body members, such as trustees, directors, or office-bearers.
• The specific objectives of the organization.
• A list of foreign donors (if any) and the expected foreign contributions.

The form must be filled with utmost care, as any errors or omissions could result in delays or rejection of the application.

2. Certificate of Incorporation/Registration

To prove that your organization is legally recognized, you will need to submit a copy of the certificate of incorporation or registration, depending on the type of entity:

• For Trusts: A copy of the registration certificate under the Indian Trusts Act, 1882.
• For Societies: A copy of the registration certificate under the Societies Registration Act, 1860.
• For Section 8 Companies: A copy of the certificate of incorporation issued by the Registrar of Companies (RoC).

This document establishes the legitimacy of your organization under Indian law.

3. Memorandum and Articles of Association/Trust Deed

The organization must submit its governing documents, which outline the objectives, structure, and operation of the organization. Depending on the type of entity, the required document will be:

• For Trusts: A copy of the trust deed.
• For Societies and Section 8 Companies: A copy of the Memorandum of Association (MOA) and Articles of Association (AOA).

These documents define the organization’s purpose and how it will utilize the funds received, ensuring it adheres to FCRA regulations.

4. List of Governing Body Members

An up-to-date list of the organization’s governing body members, such as trustees, directors, or office-bearers, must be submitted. The list should include:

• Name and designation of each member.
• Contact information (address, phone number, email).
• Their involvement in the organization and their role in decision-making.

This list is crucial for the Ministry of Home Affairs to verify the credentials and integrity of the people managing the organization.

5. PAN Card of the Organization

The organization must provide its Permanent Account Number (PAN) card as a part of the application. This serves as a unique identification for the organization for tax and financial purposes. It also ensures that the organization is compliant with tax regulations in India.

6. Bank Account Details

A specific bank account must be opened for the purpose of receiving foreign contributions. The organization must submit the following details:

• A copy of the bank account passbook or bank statement, which shows the account number and the name of the organization.
• The account must be with a scheduled commercial bank, and the organization must confirm that this account will be used solely for foreign contributions.

This ensures that the foreign funds are deposited into a legitimate and designated account.

7. Audited Financial Statements for the Last Three Years

To demonstrate financial transparency, the organization must submit audited financial statements for the last three years. These documents should include:

• Balance Sheets
• Income and Expenditure Statements
• Cash Flow Statements (if applicable)

These documents must be certified by a Chartered Accountant (CA) and should clearly indicate the utilization of funds in line with the organization’s stated objectives.

8. Proof of Registered Office Address

To confirm the location of the organization, you must provide proof of the registered office address. Acceptable documents include:

• A copy of the rent agreement (if the office is rented).
• A copy of the ownership deed (if the office is owned).
• A recent utility bill (electricity, telephone, or water bill) in the organization’s name.

This document verifies that the organization has a physical office where its operations are based.

9. Affidavit for Compliance

The organization is required to submit an affidavit, signed by the head or authorized signatory of the organization, confirming that:

• The organization complies with all provisions of the FCRA.
• It has not been involved in any unlawful activities or violations of Indian laws.

The affidavit must be notarized to authenticate the information provided.

10. Security Clearance Certificate

In certain cases, the Ministry of Home Affairs may require a security clearance certificate from the organization. This certificate is necessary for ensuring that the organization does not pose a threat to national security. It can be obtained through the FCRA portal when applying for registration.

Conclusion

FCRA registration is an essential process for any organization seeking to receive foreign donations. By submitting the necessary documents, your organization can ensure that it complies with the regulations set by the Ministry of Home Affairs and operates transparently. Proper documentation not only speeds up the registration process but also ensures that the foreign contributions are used appropriately for the intended welfare and development activities. If you’re planning to apply for FCRA registration, make sure you have all the required documents in place and fulfill the eligibility criteria for a smooth registration process.