Foreign Contribution (Regulation) Act 2010
Foreign Contribution (Regulation) Act 2010 (FCRA 2010) was passed by Rajya Sabha on 19th August 2010 with a view to replace the Foreign Contribution (Regulation) Act 1976. Section 17 of FCRA 2010 provides that multiple bank accounts can be opened for the purposes of utilization provided only one bank account is maintained for receiving foreign contribution. This amendment provides a great relief to all the NGOs which were struggling under the arbitrary disallowance of multiple bank accounts under FCRA, 1976. Another relief is the time limit for processing an application for registration. In the old FCRA there was no time limit but section 12 of the FCRA 2010, provides the time limit and applications for registration have to be processed within 90 days. The FCRA department shall also provide reasons for rejections.
An organisation having a definite cultural, economic, educational, religious or social programme shall accept foreign contribution, only after such organisation obtains a certificate of registration from the Central Government.
Application for Registration
An application for registration of an organisation for acceptance of foreign contribution shall be made electronically on-line in Form FC-3, 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:
- Form FC-3 duly filled in triplicate.
- Audited statement of accounts of past three years.
- Annual Report specifying activities of past three years.
- If the association is a registered Trust or Society a certified copy of the registration certificate.
- Copy of the Memorandum of Association and/or the Articles of Association as applicable.
- List of Main objects and definite programmes for which the contribution is to be accepted / utilised.
- Details of names and addresses of the members of the Executive Committee/Governing Council etc. of the Association.
- Copy of any prior permission granted to the organization.
- Copy of resolution of Governing Body of the organisation, authorizing the registration under FCRA.
- Copy of Power of Attorney or the resolution of Governing Body by which the Chief Functionary is authorized to submit FC-3.
- List of present members of the Governing Body of the organisation and the office bearers.
- Copy of any Journal or other publication of the organization.
- If the association is having any parent or sister or subsidiary organisation which is registered under the FCRA then the registration number along with Ministry of Home Affairs file number should be mentioned.
- If the association has submitted any application earlier then its reference number should be mentioned.
- If the association has received any foreign contribution with or without the prior approval of the Central Government, then the detail should be given.
- Details of Bank along through which the foreign contribution shall be received.
- A recommendation certificate from any competent authority.
- Copy of certificates of exemption or registration issued by the Income Tax Department u/s80G and 12A.
For obtaining registration under the FCRA, the applicant association should preferrably be registered under any of the following Acts : -
- Societies Registration Act, 1860
- Indian Trusts Act 1882
- Charitable and Religious Trusts Act 1920
- Companies Act 1956 (Section 25)