FCRA registration in Bihar- NGO such as Public Trusts, Societies, Section 8 Company has to take registration under provisions of FCRA act for getting contributions from foreign sources.
Foreign Contribution Regulation Act (FCRA) registration is a legal requirement for any Indian organization or NGO to receive foreign funding or donations. It is regulated by the Ministry of Home Affairs under the Government of India. The FCRA registration is mandatory for all organizations that receive any kind of foreign funds, including money, goods, or services.
Meaning and Definition: The FCRA registration is a legal process that allows Indian organizations to receive foreign contributions from foreign sources. The Act regulates the inflow of foreign contributions and ensures that the funds are used for the intended purposes only. The registration provides a framework for monitoring and regulating the use of foreign funds by the Indian organizations.
Legal Provisions: The FCRA registration is regulated by the Ministry of Home Affairs under the Foreign Contribution Regulation Act, 2010. The Act prohibits any organization from receiving foreign contributions without obtaining prior permission or registration from the government.
Process: The process of obtaining FCRA registration involves the following steps:
- Submission of application: The organization has to submit an application in the prescribed format to the Ministry of Home Affairs.
- Verification: The Ministry of Home Affairs will verify the application and the documents submitted by the organization.
- Inspection: The Ministry may inspect the organization’s records and accounts to ensure compliance with the FCRA regulations.
- Approval: Upon successful verification and inspection, the Ministry will grant the FCRA registration to the organization.
- Allows Indian organizations to receive foreign contributions and donations legally.
- Enhances the organization’s credibility and reputation.
- Provides a framework for monitoring and regulating the use of foreign funds by Indian organizations.
- Helps to create partnerships and collaborations with foreign organizations.
- The process of obtaining FCRA registration can be lengthy and time-consuming.
- The organization is required to maintain proper records and accounts for the inflow and utilization of foreign funds.
- Non-compliance with the FCRA regulations can lead to severe penalties, including cancellation of the registration.
Types: There are two types of FCRA registration:
- Prior permission: This registration is obtained by organizations that receive foreign contributions for specific purposes or projects.
- Permanent registration: This registration is obtained by organizations that receive foreign contributions on a regular basis.
Cost involved: The cost involved in obtaining FCRA registration varies depending on the type of registration and the organization’s size and structure. The government fee for the registration ranges from INR 2000 to INR 10000.
Time involved: The time involved in obtaining FCRA registration can vary from a few weeks to several months, depending on the completeness of the application, the verification and inspection process, and other factors.
Documents required: The following documents are required for FCRA registration:
- Copy of the organization’s registration certificate.
- Copy of the organization’s Memorandum of Association and Articles of Association.
- Details of the organization’s activities, including a summary of the past three years.
- Details of the proposed project or purpose for which foreign funds will be received.
- Bank account details of the organization.
- Audited financial statements for the past three years.
- Copy of the organization’s PAN card and proof of address.
- Copy of the resolution passed by the organization’s governing body to receive foreign funds.
Public Trusts, Societies, Section 8 Company that get unfamiliar commitment or gift from unfamiliar sources are expected to acquire enrollment under Section 6(1) of Foreign Contribution Regulation Act, 2010. Such an enlistment under the Foreign Contribution Regulation Act, 2010 is known as a FCRA enrollment.
Eligibility for getting FCRA Registration
Associations looking for unfamiliar commitments for positive social, social, monetary, instructive or strict projects might acquire FCRA enrollment or get unfamiliar commitment through “earlier authorization” course. It is ideal for a FCRA candidate to be a Trust or Society or a Section 8 Company. The not-for-benefit substance should have likewise been in presence for at least three years while making the FCRA application and shouldn’t have gotten any unfamiliar commitment preceding that without the Government’s endorsement. Also, the substance looking for enlistment ought to have spent something like Rs.10,00,000/ – throughout recent years on its points and articles, barring authoritative consumption. Proclamations of Income and Expenditure, properly examined by Chartered Accountant, for most recent three years are to be submitted to validate that it meets the monetary boundary.
In the event that a recently enlisted substance might want to get unfamiliar commitments, then, at that point, endorsement for a particular movement, explicit reason and from a particular source can be made to the Ministry of Home Affairs through the Prior Permission (PP) technique.
Checklists of Documents Required for the FCRA Registration
Following archives are essential for the enlistment under FCRA, for example,
|Name of the Document||Desired Size|
|Enlistment Certificate of Association||1 MB (PDF)|
|Notice of Association/Trust deed||5 MB(PDF)|
|Action Report for the last three years||3 MB(PDF)|
|Evaluated Statement of records for the last 3 years||5 MB(PDF)|
|Affiliations needs to transfer oath of each key functionary||1 MB(PDF)|
|Boss Functionary signature (140 (Width) * 60 (Height) Pixel)||50 KB|
|Mark of the Association (140 (Width) * 60 (Height) Pixel)||100 KB|
What are the Advantages of FCRA Registration?
- Assists those associations which with working for the advantage and better of people in general and are associated with the social work.
- On the off chance that the associations are enlisted under FCRA, it helps the association legitimately in getting the unfamiliar commitment or government helps.
- A substance enrolled under FCRA can get gifts from Foreign bodies.
The reason for FCRA is to manage the unfamiliar cash and unfamiliar cordiality to different NGOs. This type of enrollment is a need in the event that you are picking to get cash from unfamiliar foundations and far off nationals. The FCRA controls the way that the homegrown political situation isn’t impacted by the unfamiliar gifts.
Who is Eligible for FCRA Registration in Bihar?
The Below-referenced elements are qualified for FCRA Registration:-
- Sectioin 8 organizations enlisted under the Companies Act.
- Trust enlisted under the Indian Trust Act
- Societies enrolled under the Indian Society Registration Act
- The element should not be restricted in that frame of mind by the arrangement of the FCRA.
- Unfamiliar commitment acknowledged by the trust will not endanger the life or wellbeing of any individual or will not resulting any offense.
- The NPO for enlistment should have altruistic goals to serve the general public by advancing wellbeing, schooling, financial turn of events, advancement of workmanship, culture, religion, sports, and so on.
The Objective of FCRA 2010:
The Foreign Contribution Regulation Act, 2010 was established with a view to:-
- Control the acknowledgment and use of unfamiliar commitment or unfamiliar neighborliness by specific individual affiliations or organizations.
- Deny the acknowledgment and use of unfamiliar friendliness or unfamiliar commitment for any exercises ominous to public interest and for issues connected with therewith or accidental thereto.
Non-Eligible Entities for Applying FCRA Registration in Bihar:
Following substances are not permitted to be conceded FCRA enlistment:-
- The candidate is imaginary or Benami.
- Candidate against whom arraignment is directed for enjoying any out of line movement
- A candidate who has been sentenced or arraigned for any mutual pressure made in any space of determined region or any piece of the country
- Element has taken part in any rough exercises
- Has used unfamiliar commitment for its own utilization
- Any substance de-uncovered for tolerating any unfamiliar receipt or unfamiliar award under any arrangement of regulation.
- Any such acknowledgment of unfamiliar award that influences prejudicially:=
- The sway of India
- Public Interest
- Relationship with any state.
Brief on Renewal of FCRA License:
FCRA enlistment stays substantial for a long time, which can be reestablished by applying for the recharging. A substance will apply for restoration inside the accompanying timetables:
- Something like a half year before the date when the permit is getting slipped by.
- Something like a year prior to the date when enrollment slips, in cases the substance is working on a long term project.
Cancellation/Suspension of FCRA Registration:
In the event that specialists are of the view that enrolled element isn’t working according to the arrangements of regulation and its permit should be dropped, such power can do as such by giving the notification to the concerned substance. Understanding are the couple of reasons that can be considered while dropping the permit:
- NGO neglects to consent to the arrangements of the Foreign Contribution (Regulation) Act.
- Assuming the substance neglects to present a yearly return inside the due date
- In the event that any request is made for any charge forced against such association for any bad behavior in tasks, and such claim confirmed
- Commitment got isn’t used for the achievement of the primary object of element neither for accomplishing the reason expressed during FCRA enrollment application
Revised Conditions under FCRA Amendment Rules 2020
The Home Ministry has advised the Foreign Contribution (Regulation) (Amendment) Rules, 2020. The alteration has rolled out numerous improvements to the Foreign Contribution (Regulation) Rules, 2011. As of late, the Ministry had altered The Foreign Contribution (Regulation) Act, 2010 by advising the Foreign Contribution (Regulation) Amendment Act, 2020 and had informed the strategy for opening and working the assigned FCRA Account
- One of the huge correction is reexamined conditions for FCRA enlistment. According to new condition for FCRA Registration, the organization looking for FCRA enlistment ought to be in presence for quite a long time and probably spent a base measure of rupees fifteen lakh on its center exercises to help society during the last three monetary years.
- Likewise, measures have been recommended for an individual looking for earlier consent for receipt of explicit sum from a particular benefactor for completing explicit exercises or tasks.
- It has been given that on the off chance that application to reestablishment of FCRA enrollment isn’t gotten or not joined by essential expense before the expiry of the legitimacy of the authentication of enlistment, the legitimacy of the endorsement of enlistment will be considered to have stopped the date of culmination of the time of a long time from the date of the award of declaration of enlistment. In such cases how much unfamiliar commitment lying unutilized in the FCRA Account will vest with the endorsed power.
- Service of Home Affairs has broadened the date of legitimacy of the enlistment testaments gave under the Foreign Contribution (Regulation) Act (FCRA), 2010 lapsing between September 29, 2020 and May 31, 2021, till May 31 this year.
- MHA in its most recent notice said that it is commanded to regulate the FCRA and the Section 12(6) of the Act gives that the testament conceded will be substantial for a time of a long time from the date of its issue.”
- FCRA enrollment of NGO is mandatory in the event that the association getting financing from unfamiliar source. Severe discipline including crossing out should be possible assuming NGOs saw as at real fault for disregarding standards.
The Foreign Contribution (Regulation) Act (FCRA) registration in Bihar is mandatory for non-profit organizations and other entities receiving foreign contributions in India. It is regulated by the Ministry of Home Affairs, and its objective is to regulate the inflow and utilization of foreign contributions or donations in India. The FCRA registration ensures that foreign contributions are utilized only for the purpose for which they are intended and are not used for any illegal or anti-national activities.
Process: The process of FCRA registration in Bihar involves the following steps:
- Eligibility Check: The organization must first check its eligibility for FCRA registration as per the provisions of the FCRA Act, 2010.
- Application: The organization must then file an online application on the FCRA online portal with the required documents.
- Scrutiny: The Ministry of Home Affairs scrutinizes the application and verifies the documents submitted by the organization.
- Inspection: The Ministry of Home Affairs may conduct a physical inspection of the organization’s premises to ensure compliance with the FCRA Act.
- Approval or Rejection: Based on the scrutiny and inspection, the Ministry of Home Affairs may either approve or reject the application.
Advantages: The FCRA registration provides the following advantages:
- Eligibility for receiving foreign contributions or donations.
- Increased credibility and transparency in receiving and utilizing foreign contributions.
- Access to foreign funding for social and charitable causes.
Disadvantages: The FCRA registration also has the following disadvantages:
- Stringent rules and regulations regarding the use of foreign contributions.
- Increased scrutiny and monitoring by the government authorities.
- Penalties and legal action in case of non-compliance with the FCRA Act.
Cost and Time Involved: The cost and time involved in FCRA registration may vary depending on the nature of the organization and the completeness of the documents submitted. The application fee for FCRA registration is Rs. 5,000, and the renewal fee is Rs. 1,000. The time taken for FCRA registration may range from 3-6 months or more, depending on the scrutiny and inspection process.
Documents Required: The following documents are required for FCRA registration in Bihar:
- Registration certificate of the organization.
- Memorandum and Articles of Association.
- PAN Card of the organization.
- Bank account details of the organization.
- Annual reports of the organization for the past three years.
- Audit reports of the organization for the past three years.
- Details of the foreign contribution received and utilized by the organization in the past three years.