Foreign Contribution Regulation Act was established in the year 1976 in order to regulate and control the foreign currency or wealth received by individuals working in different areas of national life. FCRA registration is mandatory for not to utilize the foreign money for influencing voters in a public poll or election. FCRA registration in India is done by many leading legal firms and professionals in order to avoid any disputes in future regarding this registration. To organize religious, cultural and social events and performances organizations need FCRA registration from the Government of India through an FCRA application form duly signed by the institution and agent or attorney. There online FCRA registration has been growing immensely due to its easy and smooth process. FCRA registration is not meant for all organizations as it was only for those who have some proven track records of organizing some social events and have audited accounts for more than three years by the certified auditors.
FCRA Registration Procedure
FCRA is one of the major sources of economic enhancement in the field of social, religious, economic and educational wise. Any organization or association that got registered under the central government can accept the provision of fcra. Well, there two conditions including company / organization / association must be registered under the central government where as secondly, it only accepts fcra from any of the specific bank account. Besides these, there are many more points that need to be accompanied with fcra registration procedures like company before fcra registration must be registered with Society Registration Act, 1860, the State Trust Act, the companies Act, 1956 or 2013 or as a public trust under general law. Apart from these, many legal documents like form fc – 8, audited statements of past three years, certified copy of the registration certificate and many more.
FCRA registration and a good FCRA status, both are compulsory to access any foreign funds by NGOs working in any part of India. But, due to lack of communication infrastructure, many NGOs find it hard to maintain the good FCRA status as well as in accessing FCRA funding.
The Government of India has amended the Foreign Contribution Regulation Act in last year. The Foreign Contribution (Regulation) Act, 2010 has come into effect from May 1, 2011.
The Foreign Contribution Regulation (FCRA) Bill 2010 has been recently passed by both Houses of the Indian Parliament, the ‘Good’, the ‘Bad’ and the ‘Ugly’ aspects of this. Good • Charitable organizations will be allowed to maintain multiple bank accounts for management and utilization of FCRA funds provided only one bank account is maintained.
Under Section 6 of FCRA, it is clearly provided that any organisation having a definite cultural/ social/ educational/ religious/ economic object shall only accept foreign contribution after satisfying two conditions :
(i) It must registers itself with the Central Government.
(ii) It must agrees to receive foreign contribution only through one…
Common offences subject to severe penalty
NGO’s receiving foreign contributions should guard against violating the provisions of FCRA. The following are a few common offences, which are subject to severe penalty and punishment:
(i) NGO’s accepting foreign contribution without registration or prior permission. (ii) NGO’s having FCRA.
Audit by Chartered Accountant
Every organisation which receives foreign contributions is required to furnish a certificate from a chartered accountant. The proforma of the certificate to be given by the chartered accountant is provided in Form FC-3. Along with this certificate, audited balance sheet and the statement of receipt and.
Accounting for foreign contribution received in kind – As per rule 8(1)(a), account has to be maintained for foreign contribution received in kind. Form FC-6 provided the format and the manner in which the receipt as well as the utilisation of contributions received in kind. The entries made in FC-6 should correspond with entries made in.
Meaning of ‘Association’ Section 2(1)(a) of FCRA defines the term association as : “association” means an association of individuals, whether incorporated or not, having on office in India and includes a society, whether registered under the Societies Registration Act, 1860 (21 of 1860), or not, and any other organization.
The Foreign Contribution (Regulation) Act, 1976 (here in after referred as ‘FCRA’) was passed by the Indian Parliament and received the assent of the President of India on 31st March, 1976. The preamble to the Act reads as follows:
An Act to regulate the acceptance and utilization of foreign contribution or foreign hospitality by…
Instructions for filing online FC-1A Form for Application for seeking Prior Permission to accept foreign contribution by an Association having a definite cultural, economic, educational, religious or social programme under Sec. 6 of the FC(R) Act, 1976.
1. For online filing of application form for seeking Prior Permission a user.
Instructions for FCRA online registration under Sec. 6 of the FC(R) Act, 1976.
1. For online filing of application form a user ID is required to be created for online registration.
2. After successful registration applicant/user can login to the ‘FCRA Online Services’ and select the option for the type…
In a major crackdown on the rising flow of foreign funds to NGOs, the government has frozen accounts of 46 such organizations and prohibited another 41 from receiving and utilising foreign funds in future. Most of these organisations against whom action has been taken belong to the southern states of Andhra Pradesh, Kerala, Tamil Nadu.