Eligibility Criteria for FCRA Registration in India

The Foreign Contribution Regulation Act, 2010 (FCRA) came into effect from December 1, 2010. The main objective of this act is to regulate the acceptance and utilization of foreign contribution or foreign hospitality by certain individuals or associations or companies and to prohibit acceptance and utilization of foreign contribution or foreign hospitality for any activities detrimental to the national interest.

All associations or companies that receive foreign contribution are required to get themselves registered with the Ministry of Home Affairs (MHA), Government of India. The associations or companies that fail to comply with the provisions of the act are liable to be penalized.

The act contains a list of activities that are considered to be detrimental to the national interest and hence, prohibited from receiving foreign contribution. These activities include political activities, religious conversion, and terrorism.

The FCRA registration compliance is a mandatory requirement for all associations or companies that receive foreign contribution. All associations or companies that fail to comply with the provisions of the act are liable to be penalized. Let’s understand the eligibility criteria of FCRA registration.

Eligibility Criteria for FCRA Registration

The Foreign Contribution Regulation Act (FCRA), 2010 is an Act of the Parliament of India enacted to regulate the acceptance and utilization of foreign contribution or foreign hospitality by certain individuals or associations or companies and to prohibit acceptance and utilization of foreign contribution or foreign hospitality for any undesirable purpose.

FCRA registration is mandatory for all associations or companies that wish to receive foreign contribution or foreign hospitality. The Act provides for the registration of these entities with the Ministry of Home Affairs.

The following are the eligibility criteria for FCRA registration:

1. The entity should be a registered society under the Societies Registration Act, 1860.

2. The entity should have a minimum membership of seven persons.

3. The entity should have been in existence for at least three years.

4. The entity should have a constitution that prohibits the acceptance of foreign contribution for any undesirable purpose.

Conclusion

FCRA clearly lays down that no person having a definite cultural, economic, social, educational or religious programmer shall accept foreign contribution without obtaining FCRA Registration with the Central Government. It is essential to comply with the FCRA requirements in ensure avoiding hefty penal actions. In case of any further assistance with regards FCRA Registration, renewal, compliances, or any other clarification, please feel free to contact the ASC Group.