What is the FCRA Registration Process?
The Ministry of Home Affairs oversees the FCRA Department. Registration under the FCRA is optional for non-profits, trusts, and section 8 corporations.
The government has integrated all rules and regulations relating to foreign contributions and foreign hospitality received by any individual, association, or company in order to regulate such transactions. The Foreign Contribution (Regulation) Act of 2010 was enacted for this purpose. Through E-governance of FCRA-related activities, this was done to create a transparent platform for individuals and organizations. This open system was developed to deter any behaviours that could be harmful to the country’s interests.
The FCRA’s 2010 Objectives
The Foreign Contribution Regulation Act of 2010 was passed with the following goals in mind:
Individual associations or corporations should be able to receive and use foreign contributions or hospitality in a controlled manner.
Prohibit the acceptance and use of foreign hospitality or contributions for any acts that are detrimental to the national interest, as well as for matters related to or incidental to those activities.
FCRA Registration Types
FCRA registration is divided into two categories: proper FCRA registration and prior permissions. Apart from the eligibility criteria set forth for applicants, the applicant organization’s length of existence is also a consideration in determining the FCRA registration category. The requirements that determine the type of FCRA registration are listed below.
Proper FCRA Registration
The following minimal requirements must be satisfied in order to be qualified to apply for valid FCRA registration:
The application must have been registered and operational for at least five years.
In the previous three years, the organization must have spent at least ten lakh rupees on the advancement of its principal objectives.
The candidate must also present financial statements for the last three years. A certified Chartered Accountant must audit these financial accounts.
If a newly registered organization, on the other hand, wishes to accept any type of foreign contribution, it must first obtain prior permission. To ask for prior approval, you must meet the following basic requirements:
At the time of application, the foreign owner is specified.
The money will be put to a certain use.
The amount of foreign assistance is also specified.
Advantages of FCRA Registration
The following advantages can be obtained by registering with the FCRA:
This type of registration is typically used by societies and non-governmental organizations (NGOs). NGOs that rely on foreign funds must comply with the FCRA’s standards. A company that is registered under this system has a good reputation in the community.
Entities that comply with the FCRA’s registration requirements will be in compliance with applicable regulations.
FCRA registration is a government-mandated registration that is enforced by regulatory agencies. As a result, an applicant can take advantage of complete government assistance by registering in this manner.
Investing from abroad-
Another advantage of FCRA registration is that foreign firms will continue to support and invest. The assistance could come from the registered foreign head office or a different foreign organization.
To know the procedure and much more, kindly read this: https://www.corpseed.com/service/fcra-registration