The government has placed in Foreign Contribution Regulation Act, 2010 (also known as FCRA) to regulate the contributions received from foreign sources. Those willing to receive contributions from foreign sources need to register themselves under the FCRA. Further, the law also contains a provision for one-time permission in case the receipt of a foreign contribution is a one-time occurrence. But are all the persons eligible to receive foreign contributions? What are the eligibility criteria for FCRA registration? Let’s find out!
Eligibility Criteria for FCRA Registration in India
Any person who is willing to obtain FCRA registration in India needs to fulfil the following eligibility criteria:
- The applicant should be legally registered under Section 8 of the Companies Act, 2013, Indian Trusts Act, 1882 or the Societies Registration Act, 1860.
- Reasonable contributions in its selected field should have been made by such applicant by undertaking activities for the benefit of society.
- It should have spent a minimum amount of Rs. 10 lakhs towards the achievement of its objectives in the last 3 years. This should be excluding the administrative expenses.
- It must submit the last 3 years' financial statements duly audited by a Chartered Accountant.
Eligibility Criteria for FCRA Prior Permission
In case an applicant is willing to obtain prior permission, then the following are the eligibility criteria for prior permission under FCRA:
- The applicant should be legally registered under Section 8 of the Companies Act, 2013, Indian Trusts Act, 1882 or the Societies Registration Act, 1860.
- A specific commitment letter from the contributor / donor shall be submitted indicating the amount of contribution and the purpose in relation to which the contribution is provided.
Common Conditions For FCRA Registration in India
Apart from the above, there are some of the common conditions for FCRA registration that the applicant should satisfy. As per these conditions, the applicant-
- Should not be a benami or fictitious person;
- Is not convicted or prosecuted for creating communal tensions or disharmony in any part of the country;
- Is not convicted or prosecuted for getting involved in activities that are aimed at conversion either through force or inducement from one religious faith to another;
- Has not been found guilty of diversion or misutilisation of funds;
- Is not likely to utilize the foreign contributions for own personal gains or divert it for any undesirable purposes;
- Is not likely to engage in the propagation of sedition or use any violent methods for achieving its ends;
- Has not made contraventions of any of the provisions of FCRA;
- Being an individual, has not been convicted under any law for the time being in force. Also, no prosecution should be pending against such person for any of the offences;
- Is not prohibited from accepting foreign contributions;
- Being a person other than an individual, none of the office bearers or directors should have been convicted under any law for the time being in force. Also, no prosecution should be pending against such person for any of the offences.
Following were the conditions and eligibility criteria for FCRA registration. In case you need any assistance with FCRA registration in India, feel free to contact the ASC Group.
