How to Register FCRA for NGO and what is The Procedure?
It is essential for NGOs to register with FCRA to receive foreign funds. Every NGO must apply for the registration to Government of India prior to receiving any funds from people outside of India during their fundraising campaign. Failing to do so may result to severe penalties and punishments.
Before you apply for registration to FCRA, there are certain guidelines that you must follow.- You must have and maintain a separate bank account for the foreign contribution. However, you can maintain a single bank account to receive funds from different countries.
- You must also maintain separate books for the funds you receive from outside of India. Avoiding this step is a punishable offensive and may lead you to penalties or imprisonments.
- Form FC-1A - For getting prior permission from FCRA.
- Form FC-3 - Annual statement/return of foreign funds received and used.
- Form FC-5 - Intimation about foreign fellowship.
- Form FC-6 - Stock register for foreign contribution.
- Form FC-8 - For getting FCRA registration.
- Form X - For publishing newsletters or press releases under Press and Registration of Books Act.
Once you have filled and submitted these forms, the FCRA governing body will undertake your application for approval. They will check thoroughly for the documents you have provided, as well as your account status for foreign contribution. Once approved, your NGO will be registered under FCRA and you will be eligible to receive funds from foreign contribution.
However, the process is not as simple as it looks. There are many steps where you may get trapped. Missing even a single step may lead to disqualify your NGO from FCRA registration. Therefore, it is always suggested that you hire a reputed registration company to do all these tasks on your behalf. Company-registration.in is an FCRA registration company in India that can help you with registering your NGO with FCRA.
Posted by Anita Aswal - 1st July 15