Charitable Trusts, Societies, Section 8 Companies that receive foreign contributions or donations from foreign sources are required to obtain registration under Section 6(1) of the Foreign Contribution Regulation Act, 2010. Such a registration under the Foreign Contribution Regulation Act, 2010 is called an FCRA registration. In this article, we look at the procedure for obtaining FCRA registration in India.
Eligibility for obtaining FCRA Registration
Organizations seeking foreign contributions for definite cultural, social, economic, educational, or religious programs may obtain FCRA registration or receive foreign contributions through the “prior permission” route. It is preferable for an FCRA applicant to be a Trust or Society or a Section 8 Company. The not-for-profit entity must have also been in existence for a minimum of three years while making the FCRA application and should not have received any foreign contribution prior to that without the Government’s approval. Additionally, the entity seeking registration should have spent at least Rs.10,00,000/- over the last three years on its aims and objectives, excluding administrative expenditure. Statements of Income & Expenditure, duly audited by Chartered Accountant, for the last three years are to be submitted to substantiate that it meets the financial parameter.
In case a newly registered entity would like to receive foreign contributions, then approval for a specific activity, specific purpose, and from a specific source can be made to the Ministry of Home Affairs through the Prior Permission (PP) method.