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Monday, October 25, 2021

Objective of the FCRA Registration in India

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In the year 2010, the Foreign Contribution Regulation Act, 2010, was enacted in India. This Act was enacted with the following objectives:

To regulate the acceptance and utilization of the foreign hospitality or foreign contribution by certain individuals, companies, or associations.
To prohibit the acceptance and utilization of the foreign hospitality or foreign contribution for any unfavorable activities to the national interest and for the matters related to it in addition to that of the incidental.
As per the Foreign Contribution Regulation Act, 2010, there are two ways in which any organization can obtain FCRA Registration in India.

Objective of the FCRA Registration in India 1

The two ways are as follows:

Today the world today is so well connected and linked that accessibility to any part of the world is very easy. Transactions between places, people, and countries take place on a daily basis. As a result, the flow of the foreign currency in and out of every country is now absolutely natural and an absolute commonality.

The volume at which these FCRA Registration are carried on is at a very high level. As a result, it is impossible to keep the track of the outflow and inflow of foreign currency in a regularized manner. This brought the need for the coming up of the Foreign Contribution Regulation Act, 2010, in India.

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-> Normal FCRA Registration
-> Prior Permission FCRA Registration

Eligibility criteria for FCRA Registration in India
The eligibility criteria for FCRA Registration in India are as follows:

In order to be properly eligible for the normal FCRA registration, there are a few pre-requisites:
The applicant is required to be registered under the Societies Registration Act, 1860, in India.
The applicant is required to be registered under the Indian Trusts Act, 1882 in India;
The applicant is required to be registered as a Section 8 Company as per the Companies Act, 2013 or any such other Act as may be required by the authorities;
The applicant is required to have made a reasonable contribution by undertaking certain activities in the chosen field for the benefit of the FCRA Registration Online in India
The applicant is required to have spent a minimum of Rs. 10,00,000 in the last three years towards achieving its primary objectives, which excludes all the administrative expenditures.
The applicant is required to submit all the copies of the financial statements of the last 3 years, that should be duly audited by qualified the CA or Chartered Accountants.
If any newly registered entity likes to get some foreign contributions, then a prior approval for a specific purpose, specific activity, and from a particular source is required to be made to the Ministry of Home Affairs or MHA via the Prior Permission (PP) FCRA Registration method.

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