Online FCRA Registration in India
Foreign Contribution Regulation Act, in short, FCRA is the mandatory registration that makes any Trust, NGO or Section 8 Company eligible to get donations from foreign entities. The FCRA registration is done under the FCRA Act 2010. It ensures that foreign donations will be used for social causes. The FCRA registration needs to be done through the FCRA online services portal. By getting the FCRA registration certificate the following things can be done:
- Accept and utilize a foreign contribution and foreign hospitality.
- Get money from foreign institutes and nationals. The FCRA regulates that foreign donations do not affect the domestic political scene.
These days the world is well-connected and it takes place on a day to day basis between people and country. The inflow and outflow of foreign currency is on a very high level and to regulate this, there is a need for the Foreign Contribution Regulation Act, 2010.
Advantages of Using FCRA Online Services
An FCRA Online Services is a web portal of the Ministry of Home Affairs. In this portal, you can apply, track your application and can also verify the validity of the FCRA certificate. There are some other advantages of FCRA online services:
1. Get Permission to Receive Foreign Contributions – The organisations have to receive the permission from Ministry of Home Affairs to receive foreign contributions. This license is required for a person or NGO.
2. Submit Annual Return – Every FCRA-NGO has to submit an Annual Return to the Ministry of Home Affairs (MHA) before 31st December online. It is filled to mention the foreign fund received for the previous financial year. If FCRA-NGO does not receive the foreign contribution then filing a NIL return is mandatory.
3. Check Status of FCRA Application – To check the status of the FCRA application, the applicants have the option to check the status on the portal. You can check whether the application got approved or rejected.
4. File Complaint – Individuals and organisations have a right to file a complaint about the malpractices related to FCRA. Different emails are available to file complaints and there’s a complaint box placed near the MHA reception in Major Dhyan Chand National Stadium (MDCNS), Near India Gate, New Delhi.
Types of Foreign Contribution a NGO Can Receive
The following are the ways in which foreign contribution can be receive:
Direct/Indirect Transfer: Any donation or transfer of any articles, currency or foreign security by any person from a foreign source, directly or indirectly, will be termed as a foreign contribution.
Donations: Even donations in Indian rupee currency received from foreign sources, including foreign nationals of Indian origin, are also considered foreign funds.
Second-hand Contribution: Funds transferred by a recipient of foreign contribution to other organization/s within the country will be considered foreign contributions under the FCRA
Foreign Deposit Interest: Interest earned from deposits from foreign contributions is also foreign contributions.
Benefits of the Foreign Contribution Regulation Act
The FCRA Act has several benefits for Indian society as well as the Nation. Some of the key benefits of the FCRA includes the following:
1. An FCRA regulates the utilization of foreign contributions from individuals, political parties and organizations ensuring the contributions are not used for any illegal purposes.
2. Mandates that organizations receive foreign funds for proper accounts and records maintenance, thereby promoting transparency as well as accountability in the utilization of foreign funds.
3. Many organizations in India receive foreign funds for social as well as charitable work for providing education, healthcare and relief to the poor and needy. The Authority encourages organizations to continue their work within the legal framework for receiving foreign funds.
4. Foreign Contributions can be sought for supporting development projects such as building schools, hospitals and community centers. The FCRA provides a legal framework to receive such contributions to promote development in the Country.
5. The FCRA comes with its own set of legal frameworks for accepting foreign contributions and strengthening bilateral relationships between India and other Nations. In such cases, the FCRA contributes to increasing cooperation and collaboration on various issues of both countries.