If you want to open an NGO or an organization that is eligible to receive contribution under the Foreign Contribution (Regulation) Act, 2010, you need to register under Central Government or take prior permission. The Foreign Contribution (Regulation) Rules provides the elaborate details regarding process of registration or taking of prior permission. Read on to know more about it.

Process of registration

An organization that wants to receive contribution under FCRA needs to obtain a certificate of registration from central government to get funds under Section 11 of the Act.

An application under sub-section (1) of section 11 for registration of a person for acceptance of foreign contribution is supposed to be made electronically on-line in Form FC-3 in which you need to fill information regarding Name, Address details of the organization along with the aim, object and program of the organization and the other details as asked for in the FC-3 Form. Thereafter,  the hard copy of the on-line application duly signed by the Chief Functionary of the association together with the required documents should be forwarded to the Central government which should reach within thirty days of the submission of the on-line application, failing which the request of the person shall be deemed to have ceased.

What are the steps required in case the request of the person ceases?

Any person whose request has ceased due to lapse of time can prefer a fresh on-line application with the Central Government. However, such application has to be presented only after six months from the date of cessation of the previous application.

Requirement of exclusive bank account to receive contribution under FCRA

A person who is seeking registration under FCRA shall be required to open an exclusive bank account to receive the foreign contribution. Though a person may open one or more accounts in one or more banks for the purpose of utilising the foreign contribution after it has been received and. In all such cases, it is important for the person registered under FCRA to intimate the Secretary, Ministry of Home Affairs, New Delhi on plain paper within fifteen days of the opening of any account.

Process to get prior permission

An organization which is having a definite cultural,economic, educational, religious or social programme but has not obtained the certificate of registration can not accept foreign contribution without prior permission.

An application under sub-section (2) of section 11 for obtaining prior permission of the Central Government to receive foreign contribution shall be made electronically on-line in Form FC-4 which shall contain details regarding the organization and shall be followed by forwarding the hard copy of the on-line application duly signed by the Chief Functionary of the Association together with the required documents as asked for in the Form.

As is required for registration under Foreign Contribution (Regulation) Act., the hard copy of the on-line application is supposed to reach the Central Government within thirty days of filing of the on-line application, failing which the request of the person shall be deemed to have ceased and in case the application has ceased, the person can make new application but only after six months from the date of cessation of previous application.

Even when a person requires prior permission to recieve fund under FCRA, he/she has to open an exclusive bank account for the same, same as is required for registration under FCRA.

Fees requirement for registration or prior- permission

An application made for the grant of prior permission is supposed to be accompanied by a fee of Rs.1000/- while an application made for the grant of the registration shall be accompanied by a fee of 2000/-. The fee, as applicable, shall be remitted by demand draft or banker’s cheque in favour of the “Pay and Accounts Officer, Ministry of Home Affairs”, payable at New Delhi.

However, this fees is subject to revision by the Central Government.

An organization either needs to obtain certification or prior permission to receive fund under Foreign Contribution (Regulation) Act for which it needs to follow the above discussed procedure.

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