Foreign contribution regulation act 2010 (FCRA) FAQs

Foreign contribution regulation act or FCRA is an act of parliament. It is an mandatory requirement to receive any foreign contribution in India. FCRA regulations are applicable to every registered trust, society, institution or NGOs who wants to receive any foreign grant or fund. Main objective of FCRA rules is to legalize and monitor foreign contribution made in the country.

In this article, We are going to discuss some important FAQs ( Frequently asked questions) on FCRA registration number-

Q – What is FCRA meaning or what does FCRA stand for?

A – FCRA stands for Foreign contribution regulation act. This act was passed by Indian parliament. FCRA registration number is a mandatory requirement. NGO or trust who wants to receive foreign grant need to compulsory register for it under FCRA regulations.

Q – Can i apply for FCRA registration number online?

A – Yes, you can apply for FCRA registration number online. You can apply for it on FCRA website.

Q – What are different types of registration under FCRA rules?

A – There are two types of registration for FCRA registration number as per foreign contribution regulation act. These are –

• Fresh Registration
• Prior Permission

Q – What are FCRA requirements?

A – Requirements for FCRA registration number application on FCRA website are –

• Working internet connection
• Running NGO with registration proof or trust deed for a trust.
• Commitment letter in case of a prior permission application for FCRA.
• Running bank account for FCRA registration payments
• Other mandatory requirements

Q – Are there any non eligible entities under FCRA regulations?

A – Yes, there are entities who are not eligible for FCRA registration number.

Q – What is the validity period for FCRA registration number?

A – Under foreign contribution regulation act 2010, FCRA registration certificate is valid for a period of 5 years.

Q – Can i renew my FCRA registration?

A – Yes, you can renew your FCRA registration number online. You need to visit FCRA website at least 6 months before expiry of FCRA registration number.

Q – Can authority cancel my FCRA registration?

A – Yes, authority can can cancel your FCRA registration number. For complete list of reasons for cancellations visit FCRA renewal and suspension.

Q – What is the application procedure for obtaining a FCRA registration number?

A – As per foreign contribution regulation act, one can apply for FCRA on FCRA website. Applicant need to completely fill FCRA form along with scanned copies of documents required on FCRA website. For complete guide on FCRA registration, visit FCRA (foreign contribution regulation act) website Registration process.

Q – Is annual return need to be filed for FCRA?

A – Yes. Under foreign contribution regulation act. It is mandatory to file annual return form FC-4 within 9 months from end of a financial year.

Q – What is the difference between registration and prior permission?

A – There are two methods to apply for FCRA registration number-

• Registration
• Prior permission

For registration, business vintage of at least 3 years is required. Reasonable work needed to be done in the field of public interest in those years. Applicant need to spent at least Rs 10 lakhs in main objectives as per FCRA regulations. For prior permission, applicant need not be registered for a minimum period. Though, applicant need to present approval letter from a foreign contributor for specific activity to get a FCRA registration number.

Q – Are there any individuals who are prohibited from getting a FCRA?

A – Yes. As per foreign contribution regulation act, individuals like judges, editors, members of legislature, people contesting elections are prohibited from getting a FCRA registration number. For complete list, visit FCRA website.

Q – Who can apply for FCRA?

A – As per foreign contribution regulation act, applicant must be registered under following statute-

• Societies Registration Act, 1860
• Indian Trusts Act, 1882
• Section 8 of Companies Act, 2013

Q – Is FEMA and FCRA one and same thing?

A – No, they are not same thing. FEMA is a fiscal legislation under ministry of finance. FCRA is act that mainly governs foreign contribution done to NGO situated within India. Foreign contribution regulation act or FCRA governs all contributions done to Indian NGOs and it is mandatory to register for FCRA registration number to receive foreign grants.

 

Q- Can foreign contribution be received in Indian Rupees?

A – Yes, As per Foreign contribution regulation act 2010. Foreign contribution can be received in Indian Rupees.

Q – How can an institution intimate foreign contribution to authorities?

A- Every organization need to submit form FC-6 as per FCRA regulations. This form along with Income and expenditure statement, balance sheet and Receipt/payment account need to be submitted within 9 months of closure of a financial year.

Q – Does an organization need to keep any contribution data on public domain?

A – Yes. As per foreign contribution regulation act 2010, each organization who receives more than one crores of a fund in a financial year need to put that data in public domain like website.

Q – Weather a fund received from a NRI be treated as contribution under FCRA regulations?

A – No, Fund received from a NRI through normal banking channels in normal course of business would not be treated as contribution under foreign contribution regulation act.

Q – Is bank interest earned on foreign contribution also considered as a contribution?

A – Yes. As per FCRA rules interest earned on foreign contribution is also traeted as contribution and same need to be updated in form FC-6.

Q – Is it necessary to have society or NGO to be registered as per FCRA rules?

A – No, Society need not be registered as per foreign contribution regulation act. But, it is always practically advisable to have it registered.

Q – Will consultancy income by an NGO be considered as contribution?

A – No, FCRA rules mandates that consultancy income generated by NGO not be considered as contribution as per FCRA 2010.

Q – Can a organization involved in political activities register themselves with FCRA?

A – No, political parties cannot apply for a FCRA registration number.

Q – What is expected time to get a FCRA registration number/certificate?

A – There is no set time limit to get FCRA registration number from day of application. However, It usually takes 45-90 days to get FCRA registration number from the day of application.

Q – Do i need to send hard copy of application too?

A – Hard copy of application for FCRA registration number along with documents should reach within 30 days of online application.

Q – What is the fees for FCRA registration number?

A – Fee structure for FCRA registration number is as follows-

• Fresh registration – Rs 2000/-
• Prior permission – Rs 1000/-
• Renewal – Rs 500/-

Q – What can i do if my application for FCRA is rejected?

A – As per foreign contribution regulation act 2010, an appeal can be made to high court 60 days within rejection. A fresh application can also be filed after 6 months of last application to FCRA authorities.

Q – Can i have separate bank accounts for separate donors?

A – No. As per foreign contribution regulation act 2010, organization need to maintain a single bank account for receiving of contribution. As per FCRA rules, foreign funds cannot be received in different bank accounts.

In this article, we have discussed various FAQs ( frequently asked questions) related to foreign contribution regulation act (FCRA). For further reading on different types of trade licenses required in India, you can visit our website’s other section.