FCRA Registration
Section 11 of FCRA 2010 deals with registration for the purpose of receiving foreign contribution .
Rule 9 to FCRR 2011 provides for obtaining registration to receive foreign contribution.
Registration is prerequisite condition for receive foreign contribution from a foreign source.
What is Foreign source?
Foreign as defined in section 2(1)(j) of FCRA, 2010 includes:
- I. The government of any foreign country or territory and agency of such government;
- II. Any international agency, not being the united nations or any of its specialized agencies,
the world bank, international monetary fund or such other agency as the central government may, by
notification, specify in this behalf;
- III. A foreign company;
- IV. A corporation, not being a foreign company, incorporated in a foreign country or territory;
- V. A multinational corporation referred to in sub-clause (iv) of clause (g) of section 2 of
FCRA, 2010;
- VI. A company within the meaning of the companies act, 1956 and more than one-half of the
nominal value of its share capital is held, either singly or in the aggregate, by one or more of the
following, namely:
- a) The government of a foreign country or territory;
- b) The citizens of a foreign country or territory;
- c) Corporations incorporated in a foreign country or territory;
- d) Trusts, societies or other associations of individuals (whether incorporated or not), formed
or
registered in a foreign country or territory;
- e) Foreign company;
Provided that where the nominal value of share capital is within the limits specified for foreign
investment under the foreign exchange management Act, 1999, or the rules or regulations made
thereunder, then, notwithstanding the nominal value of share capital of company being more than one
half of such value at the time of making the contribution, such company shall not be a foreign
source.
- VII. A trade union in any foreign country or territory, whether or not registered in such foreign
country or territory;
- VIII. A foreign trust or a foreign foundation, by whatever name called, or such trust or foundation
mainly financed by a foreign country or territory;
- IX. A society, club, or other association or individuals formed or registered outside India;
- X. A citizen of a foreign country”.
Note: A Few bodies/organizations of the united nations, world bank and some other international
agencies/multilateral organizations are exempted from this definition, and are not treated as
foreign source. Hence, the funds received from them are not considered as foreign
contribution.
Eligibility criteria for
For grant of registration under FCRA, 2010, the association should:
- I. Be registered under an existing statute like the societies Registration Act, 1860 or the Indian
trusts Act, 1882 or section 25 of the Companies Act, 1956 (now section 8 of companies act, 2013)
etc;
- II. Be in existence for at least three years and has undertaken reasonable activity in its chosen
field for the benefit of the society for which the foreign contribution is proposed to be utilised.
The applicant NGO/association will be free to choose its items of expenditure (excluding the
administrative expenditure as defined in Rule 5 of FCRR, 2011) to become eligible for the minimum
threshold of Rs.15.00 lakh spent during the last three years. If the association wants inclusion of
its capital investment in assets like land, building, other permanent structures, vehicles,
equipment, etc, then the chief functionary shall have to give an undertaking that these assets shall
be utilized only for the FCRA activities and they will not be diverted for any other purpose till
FCRA registration Of the NGO holds.
Requirement for FCRA Registration
- > Registration Certificate, Bye laws/ Trust Deed/ MOA and AOA
- > Last 3 years Income Tax Return, Audit Report and Annual Report
- > FCRA bank Account Details
- > Members details
- > Email id and Contact number
- > Authorised Person Signature in JPJ
- > Organization seal in JPJ
- > Affidavit of each key functionary
- > Aggregate expenditure Towards social activities 15 lacs or more in last 3 years
- > Need to open Bank account in SBI Sansad Marg Branch Delhi
Some Important questions and answers.
Q. Who should execute the affidavit?
- > Tha Affidavit to be executed in proforma “AA” as per rules 9 , 12, Forms FC-3A, FC-3B, and
FC-3C.
The said affidavit to be executed by :
- > Each office Bearer
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