FCRA

Foreign Contribution Regulation Act, 2010 (FCRA):

Introduction:

This act consolidates the law to regulate the acceptance and utilization of foreign contribution and hospitality by certain individuals or associations.

Foreign contribution means donation, delivery or transfer made by any foreign source.

Grant of certificate of registration:

  • An application is made to Central Government in such form and manner and along with such fee, as may be prescribed.
  • On receipt of application for grant of certificate and after making such inquiry as the Central Government deems fit, may ordinarily within ninety days from the date of receipt of application. 
  • Procedure for registration:

An application for registration shall be e-filed in Form FC-3. Documents that are required cited below:

  1. Audited statement of accounts of past three years.
  2. Annual Report specifying activities of past three years.
  3. If the association is a registered Trust or Society a certified copy of the registration certificate.
  4. Copy of the Memorandum of Association and/or the Articles of Association as applicable.
  5. List of Main objects and definite programmes for which the contribution is to be accepted / utilised.
  6. Details of names and addresses of the members of the Executive Committee/Governing Council etc. of the Association.
  7. Copy of any prior permission granted to the organization.
  8. Copy of resolution of Governing Body of the organisation, authorizing the registration under FCRA.
  9. Copy of Power of Attorney or the resolution of Governing Body by which the Chief Functionary is authorized to submit FC-3.
  10. List of present members of the Governing Body of the organisation and the office bearers.
  11. Copy of any Journal or other publication of the organization.
  12. 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.
  13. If the association has submitted any application earlier then its reference number should be mentioned.
  14. If the association has received any foreign contribution with or without the prior approval of the Central Government, then the detail should be given.
  15. Details of Bank along through which the foreign contribution shall be received.
  16. A recommendation certificate from any competent authority.
  17. Copy of certificates of exemption or registration issued by the Income Tax Department u/s80G and 12A.

 

Renewal of Certificate:

 

  • Every person who has been granted a certificate shall renewal the respective certificate within the six months before the expiry of the certificate.
  • Application of renewal shall be made to Central Government.
  • Within 90 days of receipt of application Central Government shall renew the certificate

Suspension of certificate:

Where Central Government for some reasons is satisfied that pending consideration of the question of cancelling the certificate, suspend the certificate for such period not exceeding 180 days.

Cancellation of Certificate:

The Central Government if satisfied after making such inquiry as it think fit, by an order, cancel certificate if,

  • The holder of certificate has made a statement which is incorrect or false,
  • The holder of certificate has violated any of terms and conditions,
  • The holder of certificate hasn’t been engaged in any of the activities in its choosen field, etc.

Summary of forms:

  Form FC-1: Intimation to central Government of receipt of foreign contribution by way of gift     

                     from relative

Form FC-2: Application for seeking prior permission of CG to accept foreign hospitality

Form FC-3: Application for registration under FCRA

Form FC-4: Application for prior permission under FCRA for acceptance of foreign contribution.

Form FC-5: Application for seeking renewal of registration certificate

Form FC-6: Account of foreign Contribution for the year ending on 31st March

Form FC-7: Intimation about foreign Contribution (Articles) Account

Form FC-8: Intimation about Foreign Contribution (securities) Account

Form FC-9: Intimation to the Central Government of receipt of Foreign Contribution received by

                      candidate for election

Form FC-10: Application for seeking permission for transfer of foreign contribution to other

                       registered/unregistered persons

 

Frequently Asked Questions (FAQs):

  1. Whether earnings from foreign client(s) by a person in lieu of goods sold or services rendered by it are treated as foreign contribution?

Ans: No. As clarified, foreign contribution excludes earnings from foreign client(s) by a person  in lieu of goods sold or services rendered by it as this is a transaction of commercial nature.

  1. What is a foreign source?

Ans. Foreign source, as defined in Section 2(1) (j) of FCRA, 2010 includes:-

  1. the Government of any foreign country or territory and any agency of such Government;
  2. any international agency, not being the United Nations or any of its specialized agencies, the World Bank, International Monetary Fund or such other agency as the Central Government may, by notification, specify in this behalf;
  3. a foreign company;
  4. a corporation, not being a foreign company, incorporated in a foreign country or territory;
  5. a multi-national corporation referred to in sub-clause of clause (g);
  6. a company within the meaning of the Companies Act, 1956, and more than one-half of  the nominal value of its share capital is held, either singly or in the aggregate, by one or more of the following, namely:-
  1.  the Government of a foreign country or territory;
  2.  the citizens of a foreign country or territory;
  3.  corporations incorporated in a foreign country or territory;
  4. trusts, societies or other associations of individuals (whether incorporated or    not), formed or registered in a foreign country or territory;
  5.   foreign company;
  1.  a trade union in any foreign country or territory, whether or not registered in such foreign country or territory;
  2. a foreign trust or a foreign foundation, by whatever name called, or such trust or  foundation mainly financed by a foreign country or territory;
  3.  a society, club or other association or individuals formed or registered outside India;
  4.  a citizen of a foreign country;
  1.  What is foreign contribution?

Ans. As defined in Section 2(1)(h) of FCRA, 2010, "foreign contribution" means the donation, delivery or transfer made by any foreign source, ─

  1. of any article, not being an article given to a person* as a gift for his personal use, if the market value, in India, of such article, on the date of such gift is not more than such sum** as may be specified from time to time by the Central Government by rules made by it in this behalf;
  2.  of any currency, whether Indian or foreign;
  3.  of any security as defined in clause (h) of section 2 of the securities Contracts(Regulation) Act, 1956 and includes any foreign security as defined in clause (o) of Section 2 of the Foreign Exchange Management Act, 1999.

Explanation 1 – A donation, delivery or transfer or any article, currency or foreign security referred to in this clause by any person who has received it form any foreign source, either directly or through one or more persons, shall also be deemed to be foreign contribution with the meaning of this clause.

Explanation 2 ‒ The interest accrued on the foreign contribution deposited in any bank referred to in sub-section (1) of Section 17 or any other income derived from the foreign contribution or interest thereon shall also be deemed to be foreign contribution within the meaning of this clause.

Explanation 3 ‒ Any amount received, by an person from any foreign source in India, by way of fee (including fees charged by an educational institution in India from foreign student) or towards cost in lieu of goods or services rendered by such person in the ordinary course of his business, trade or commerce whether within India or outside India or any contribution received from an agent or a foreign source towards such fee or cost shall be excluded from the definition of foreign contribution within the meaning of this clause. * In terms of FCRA, 2010 "person" includes ‒

  1. an individual;
  2.  a Hindu undivided family;
  3.  an association; and
  4.  a company

registered under section 25 of the Companies Act, 1956. **The sum, as stated at (i) above, has been specified as Rs. 25,000/- vide the Foreign Contribution (Regulation) Amendment Rules, 2012 [G.S.R. 292 (E) dated 12th April, 2012].

 

  1. Section 2(c)(i) of repealed FCRA, 1976 inter alia defined foreign contribution as the donation, delivery or transfer made by any foreign source of any article, not given to a person as a gift for personal use, if the market value, in India, of such article exceeds one thousand rupees. What limit has been prescribed in FCRA, 2010 in respect of such articles?

Ans. The limit has been specified as Rs. 25000/- through insertion of the following Rule 6A in FCRR, 2011 vide the Foreign Contribution (Regulation) Amendment Rules, 2012 [G.S.R. 292 (E) dated 12th April, 2012]:

"6A. When articles gifted for personal use do not amount to foreign contribution. - Any article gifted to a person for his personal use whose market value in India on the date of such gift does not exceed rupees twenty-five thousand shall not be a foreign contribution within the meaning of sub-clause (i) of clause (h) of sub-section (1) of section 2.

Foreign Contribution Regulation Act, 2010 (FCRA):

Introduction:

This act consolidates the law to regulate the acceptance and utilization of foreign contribution and hospitality by certain individuals or associations.

Foreign contribution means donation, delivery or transfer made by any foreign source.

Grant of certificate of registration:

  • An application is made to Central Government in such form and manner and along with such fee, as may be prescribed.
  • On receipt of application for grant of certificate and after making such inquiry as the Central Government deems fit, may ordinarily within ninety days from the date of receipt of application. 
  • Procedure for registration:

An application for registration shall be e-filed in Form FC-3. Documents that are required cited below:

  1. Audited statement of accounts of past three years.
  2. Annual Report specifying activities of past three years.
  3. If the association is a registered Trust or Society a certified copy of the registration certificate.
  4. Copy of the Memorandum of Association and/or the Articles of Association as applicable.
  5. List of Main objects and definite programmes for which the contribution is to be accepted / utilised.
  6. Details of names and addresses of the members of the Executive Committee/Governing Council etc. of the Association.
  7. Copy of any prior permission granted to the organization.
  8. Copy of resolution of Governing Body of the organisation, authorizing the registration under FCRA.
  9. Copy of Power of Attorney or the resolution of Governing Body by which the Chief Functionary is authorized to submit FC-3.
  10. List of present members of the Governing Body of the organisation and the office bearers.
  11. Copy of any Journal or other publication of the organization.
  12. 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.
  13. If the association has submitted any application earlier then its reference number should be mentioned.
  14. If the association has received any foreign contribution with or without the prior approval of the Central Government, then the detail should be given.
  15. Details of Bank along through which the foreign contribution shall be received.
  16. A recommendation certificate from any competent authority.
  17. Copy of certificates of exemption or registration issued by the Income Tax Department u/s80G and 12A.

Renewal of Certificate:

  • Every person who has been granted a certificate shall renewal the respective certificate within the six months before the expiry of the certificate.
  • Application of renewal shall be made to Central Government.
  • Within 90 days of receipt of application Central Government shall renew the certificate

Suspension of certificate:

Where Central Government for some reasons is satisfied that pending consideration of the question of cancelling the certificate, suspend the certificate for such period not exceeding 180 days.

Cancellation of Certificate:

The Central Government if satisfied after making such inquiry as it think fit, by an order, cancel certificate if,

  • The holder of certificate has made a statement which is incorrect or false,
  • The holder of certificate has violated any of terms and conditions,
  • The holder of certificate hasn’t been engaged in any of the activities in its choosen field, etc.

Summary of forms:

  Form FC-1: Intimation to central Government of receipt of foreign contribution by way of gift     

                     from relative

Form FC-2: Application for seeking prior permission of CG to accept foreign hospitality

Form FC-3: Application for registration under FCRA

Form FC-4: Application for prior permission under FCRA for acceptance of foreign contribution.

Form FC-5: Application for seeking renewal of registration certificate

Form FC-6: Account of foreign Contribution for the year ending on 31st March

Form FC-7: Intimation about foreign Contribution (Articles) Account

Form FC-8: Intimation about Foreign Contribution (securities) Account

Form FC-9: Intimation to the Central Government of receipt of Foreign Contribution received by

                      candidate for election

Form FC-10: Application for seeking permission for transfer of foreign contribution to other

                       registered/unregistered persons

 

Frequently Asked Questions (FAQs):

  1. Whether earnings from foreign client(s) by a person in lieu of goods sold or services rendered by it are treated as foreign contribution?

Ans: No. As clarified, foreign contribution excludes earnings from foreign client(s) by a person  in lieu of goods sold or services rendered by it as this is a transaction of commercial nature.

  1. What is a foreign source?

Ans. Foreign source, as defined in Section 2(1) (j) of FCRA, 2010 includes:-

  1. the Government of any foreign country or territory and any agency of such Government;
  2. any international agency, not being the United Nations or any of its specialized agencies, the World Bank, International Monetary Fund or such other agency as the Central Government may, by notification, specify in this behalf;
  3. a foreign company;
  4. a corporation, not being a foreign company, incorporated in a foreign country or territory;
  5. a multi-national corporation referred to in sub-clause of clause (g);
  6. a company within the meaning of the Companies Act, 1956, and more than one-half of  the nominal value of its share capital is held, either singly or in the aggregate, by one or more of the following, namely:-
  1.  the Government of a foreign country or territory;
  2.  the citizens of a foreign country or territory;
  3.  corporations incorporated in a foreign country or territory;
  4. trusts, societies or other associations of individuals (whether incorporated or    not), formed or registered in a foreign country or territory;
  5.   foreign company;
  1.  a trade union in any foreign country or territory, whether or not registered in such foreign country or territory;
  2. a foreign trust or a foreign foundation, by whatever name called, or such trust or  foundation mainly financed by a foreign country or territory;
  3.  a society, club or other association or individuals formed or registered outside India;
  4.  a citizen of a foreign country;
  1.  What is foreign contribution?

Ans. As defined in Section 2(1)(h) of FCRA, 2010, "foreign contribution" means the donation, delivery or transfer made by any foreign source, ─

  1. of any article, not being an article given to a person* as a gift for his personal use, if the market value, in India, of such article, on the date of such gift is not more than such sum** as may be specified from time to time by the Central Government by rules made by it in this behalf;
  2.  of any currency, whether Indian or foreign;
  3.  of any security as defined in clause (h) of section 2 of the securities Contracts(Regulation) Act, 1956 and includes any foreign security as defined in clause (o) of Section 2 of the Foreign Exchange Management Act, 1999.

Explanation 1 – A donation, delivery or transfer or any article, currency or foreign security referred to in this clause by any person who has received it form any foreign source, either directly or through one or more persons, shall also be deemed to be foreign contribution with the meaning of this clause.

Explanation 2 ‒ The interest accrued on the foreign contribution deposited in any bank referred to in sub-section (1) of Section 17 or any other income derived from the foreign contribution or interest thereon shall also be deemed to be foreign contribution within the meaning of this clause.

Explanation 3 ‒ Any amount received, by an person from any foreign source in India, by way of fee (including fees charged by an educational institution in India from foreign student) or towards cost in lieu of goods or services rendered by such person in the ordinary course of his business, trade or commerce whether within India or outside India or any contribution received from an agent or a foreign source towards such fee or cost shall be excluded from the definition of foreign contribution within the meaning of this clause. * In terms of FCRA, 2010 "person" includes ‒

  1. an individual;
  2.  a Hindu undivided family;
  3.  an association; and
  4.  a company

registered under section 25 of the Companies Act, 1956. **The sum, as stated at (i) above, has been specified as Rs. 25,000/- vide the Foreign Contribution (Regulation) Amendment Rules, 2012 [G.S.R. 292 (E) dated 12th April, 2012].

 

  1. Section 2(c)(i) of repealed FCRA, 1976 inter alia defined foreign contribution as the donation, delivery or transfer made by any foreign source of any article, not given to a person as a gift for personal use, if the market value, in India, of such article exceeds one thousand rupees. What limit has been prescribed in FCRA, 2010 in respect of such articles?

Ans. The limit has been specified as Rs. 25000/- through insertion of the following Rule 6A in FCRR, 2011 vide the Foreign Contribution (Regulation) Amendment Rules, 2012 [G.S.R. 292 (E) dated 12th April, 2012]:

"6A. When articles gifted for personal use do not amount to foreign contribution. - Any article gifted to a person for his personal use whose market value in India on the date of such gift does not exceed rupees twenty-five thousand shall not be a foreign contribution within the meaning of sub-clause (i) of clause (h) of sub-section (1) of section 2.Foreign Contribution Regulation Act, 2010 (FCRA):

Introduction:

This act consolidates the law to regulate the acceptance and utilization of foreign contribution and hospitality by certain individuals or associations.

Foreign contribution means donation, delivery or transfer made by any foreign source.

Grant of certificate of registration:

  • An application is made to Central Government in such form and manner and along with such fee, as may be prescribed.
  • On receipt of application for grant of certificate and after making such inquiry as the Central Government deems fit, may ordinarily within ninety days from the date of receipt of application. 
  • Procedure for registration:

An application for registration shall be e-filed in Form FC-3. Documents that are required cited below:

  1. Audited statement of accounts of past three years.
  2. Annual Report specifying activities of past three years.
  3. If the association is a registered Trust or Society a certified copy of the registration certificate.
  4. Copy of the Memorandum of Association and/or the Articles of Association as applicable.
  5. List of Main objects and definite programmes for which the contribution is to be accepted / utilised.
  6. Details of names and addresses of the members of the Executive Committee/Governing Council etc. of the Association.
  7. Copy of any prior permission granted to the organization.
  8. Copy of resolution of Governing Body of the organisation, authorizing the registration under FCRA.
  9. Copy of Power of Attorney or the resolution of Governing Body by which the Chief Functionary is authorized to submit FC-3.
  10. List of present members of the Governing Body of the organisation and the office bearers.
  11. Copy of any Journal or other publication of the organization.
  12. 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.
  13. If the association has submitted any application earlier then its reference number should be mentioned.
  14. If the association has received any foreign contribution with or without the prior approval of the Central Government, then the detail should be given.
  15. Details of Bank along through which the foreign contribution shall be received.
  16. A recommendation certificate from any competent authority.
  17. Copy of certificates of exemption or registration issued by the Income Tax Department u/s80G and 12A.

Renewal of Certificate:

  • Every person who has been granted a certificate shall renewal the respective certificate within the six months before the expiry of the certificate.
  • Application of renewal shall be made to Central Government.
  • Within 90 days of receipt of application Central Government shall renew the certificate

Suspension of certificate:

Where Central Government for some reasons is satisfied that pending consideration of the question of cancelling the certificate, suspend the certificate for such period not exceeding 180 days.

Cancellation of Certificate:

The Central Government if satisfied after making such inquiry as it think fit, by an order, cancel certificate if,

  • The holder of certificate has made a statement which is incorrect or false,
  • The holder of certificate has violated any of terms and conditions,
  • The holder of certificate hasn’t been engaged in any of the activities in its choosen field, etc.

Summary of forms:

  Form FC-1: Intimation to central Government of receipt of foreign contribution by way of gift     

                     from relative

Form FC-2: Application for seeking prior permission of CG to accept foreign hospitality

Form FC-3: Application for registration under FCRA

Form FC-4: Application for prior permission under FCRA for acceptance of foreign contribution.

Form FC-5: Application for seeking renewal of registration certificate

Form FC-6: Account of foreign Contribution for the year ending on 31st March

Form FC-7: Intimation about foreign Contribution (Articles) Account

Form FC-8: Intimation about Foreign Contribution (securities) Account

Form FC-9: Intimation to the Central Government of receipt of Foreign Contribution received by

                      candidate for election

Form FC-10: Application for seeking permission for transfer of foreign contribution to other

                       registered/unregistered persons

Frequently Asked Questions (FAQs):

  1. Whether earnings from foreign client(s) by a person in lieu of goods sold or services rendered by it are treated as foreign contribution?

Ans: No. As clarified, foreign contribution excludes earnings from foreign client(s) by a person  in lieu of goods sold or services rendered by it as this is a transaction of commercial nature.

  1. What is a foreign source?

Ans. Foreign source, as defined in Section 2(1) (j) of FCRA, 2010 includes:-

  1. the Government of any foreign country or territory and any agency of such Government;
  2. any international agency, not being the United Nations or any of its specialized agencies, the World Bank, International Monetary Fund or such other agency as the Central Government may, by notification, specify in this behalf;
  3. a foreign company;
  4. a corporation, not being a foreign company, incorporated in a foreign country or territory;
  5. a multi-national corporation referred to in sub-clause of clause (g);
  6. a company within the meaning of the Companies Act, 1956, and more than one-half of  the nominal value of its share capital is held, either singly or in the aggregate, by one or more of the following, namely:-
  1.  the Government of a foreign country or territory;
  2.  the citizens of a foreign country or territory;
  3.  corporations incorporated in a foreign country or territory;
  4. trusts, societies or other associations of individuals (whether incorporated or    not), formed or registered in a foreign country or territory;
  5.   foreign company;
  1.  a trade union in any foreign country or territory, whether or not registered in such foreign country or territory;
  2. a foreign trust or a foreign foundation, by whatever name called, or such trust or  foundation mainly financed by a foreign country or territory;
  3.  a society, club or other association or individuals formed or registered outside India;
  4.  a citizen of a foreign country;
  1.  What is foreign contribution?

Ans. As defined in Section 2(1)(h) of FCRA, 2010, "foreign contribution" means the donation, delivery or transfer made by any foreign source, ─

  1. of any article, not being an article given to a person* as a gift for his personal use, if the market value, in India, of such article, on the date of such gift is not more than such sum** as may be specified from time to time by the Central Government by rules made by it in this behalf;
  2.  of any currency, whether Indian or foreign;
  3.  of any security as defined in clause (h) of section 2 of the securities Contracts(Regulation) Act, 1956 and includes any foreign security as defined in clause (o) of Section 2 of the Foreign Exchange Management Act, 1999.

Explanation 1 – A donation, delivery or transfer or any article, currency or foreign security referred to in this clause by any person who has received it form any foreign source, either directly or through one or more persons, shall also be deemed to be foreign contribution with the meaning of this clause.

Explanation 2 ‒ The interest accrued on the foreign contribution deposited in any bank referred to in sub-section (1) of Section 17 or any other income derived from the foreign contribution or interest thereon shall also be deemed to be foreign contribution within the meaning of this clause.

Explanation 3 ‒ Any amount received, by an person from any foreign source in India, by way of fee (including fees charged by an educational institution in India from foreign student) or towards cost in lieu of goods or services rendered by such person in the ordinary course of his business, trade or commerce whether within India or outside India or any contribution received from an agent or a foreign source towards such fee or cost shall be excluded from the definition of foreign contribution within the meaning of this clause. * In terms of FCRA, 2010 "person" includes ‒

  1. an individual;
  2.  a Hindu undivided family;
  3.  an association; and
  4.  a company

registered under section 25 of the Companies Act, 1956. **The sum, as stated at (i) above, has been specified as Rs. 25,000/- vide the Foreign Contribution (Regulation) Amendment Rules, 2012 [G.S.R. 292 (E) dated 12th April, 2012].

 

  1. Section 2(c)(i) of repealed FCRA, 1976 inter alia defined foreign contribution as the donation, delivery or transfer made by any foreign source of any article, not given to a person as a gift for personal use, if the market value, in India, of such article exceeds one thousand rupees. What limit has been prescribed in FCRA, 2010 in respect of such articles?

Ans. The limit has been specified as Rs. 25000/- through insertion of the following Rule 6A in FCRR, 2011 vide the Foreign Contribution (Regulation) Amendment Rules, 2012 [G.S.R. 292 (E) dated 12th April, 2012]:

"6A. When articles gifted for personal use do not amount to foreign contribution. - Any article gifted to a person for his personal use whose market value in India on the date of such gift does not exceed rupees twenty-five thousand shall not be a foreign contribution within the meaning of sub-clause (i) of clause (h) of sub-section (1) of section 2.Foreign Contribution Regulation Act, 2010 (FCRA):

Introduction:

This act consolidates the law to regulate the acceptance and utilization of foreign contribution and hospitality by certain individuals or associations.

Foreign contribution means donation, delivery or transfer made by any foreign source.

Grant of certificate of registration:

  • An application is made to Central Government in such form and manner and along with such fee, as may be prescribed.
  • On receipt of application for grant of certificate and after making such inquiry as the Central Government deems fit, may ordinarily within ninety days from the date of receipt of application. 

 

  • Procedure for registration:

 

An application for registration shall be e-filed in Form FC-3. Documents that are required cited below:

  1. Audited statement of accounts of past three years.
  2. Annual Report specifying activities of past three years.
  3. If the association is a registered Trust or Society a certified copy of the registration certificate.
  4. Copy of the Memorandum of Association and/or the Articles of Association as applicable.
  5. List of Main objects and definite programmes for which the contribution is to be accepted / utilised.
  6. Details of names and addresses of the members of the Executive Committee/Governing Council etc. of the Association.
  7. Copy of any prior permission granted to the organization.
  8. Copy of resolution of Governing Body of the organisation, authorizing the registration under FCRA.
  9. Copy of Power of Attorney or the resolution of Governing Body by which the Chief Functionary is authorized to submit FC-3.
  10. List of present members of the Governing Body of the organisation and the office bearers.
  11. Copy of any Journal or other publication of the organization.
  12. 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.
  13. If the association has submitted any application earlier then its reference number should be mentioned.
  14. If the association has received any foreign contribution with or without the prior approval of the Central Government, then the detail should be given.
  15. Details of Bank along through which the foreign contribution shall be received.
  16. A recommendation certificate from any competent authority.
  17. Copy of certificates of exemption or registration issued by the Income Tax Department u/s80G and 12A.

 

Renewal of Certificate:

 

  • Every person who has been granted a certificate shall renewal the respective certificate within the six months before the expiry of the certificate.
  • Application of renewal shall be made to Central Government.
  • Within 90 days of receipt of application Central Government shall renew the certificate

Suspension of certificate:

Where Central Government for some reasons is satisfied that pending consideration of the question of cancelling the certificate, suspend the certificate for such period not exceeding 180 days.

Cancellation of Certificate:

The Central Government if satisfied after making such inquiry as it think fit, by an order, cancel certificate if,

  • The holder of certificate has made a statement which is incorrect or false,
  • The holder of certificate has violated any of terms and conditions,
  • The holder of certificate hasn’t been engaged in any of the activities in its choosen field, etc.

Summary of forms:

  Form FC-1: Intimation to central Government of receipt of foreign contribution by way of gift     

                     from relative

Form FC-2: Application for seeking prior permission of CG to accept foreign hospitality

Form FC-3: Application for registration under FCRA

Form FC-4: Application for prior permission under FCRA for acceptance of foreign contribution.

Form FC-5: Application for seeking renewal of registration certificate

Form FC-6: Account of foreign Contribution for the year ending on 31st March

Form FC-7: Intimation about foreign Contribution (Articles) Account

Form FC-8: Intimation about Foreign Contribution (securities) Account

Form FC-9: Intimation to the Central Government of receipt of Foreign Contribution received by

                      candidate for election

Form FC-10: Application for seeking permission for transfer of foreign contribution to other

                       registered/unregistered persons

 

Frequently Asked Questions (FAQs):

  1. Whether earnings from foreign client(s) by a person in lieu of goods sold or services rendered by it are treated as foreign contribution?

Ans: No. As clarified, foreign contribution excludes earnings from foreign client(s) by a person  in lieu of goods sold or services rendered by it as this is a transaction of commercial nature.

 

  1. What is a foreign source?

Ans. Foreign source, as defined in Section 2(1) (j) of FCRA, 2010 includes:-

  1. the Government of any foreign country or territory and any agency of such Government;
  2. any international agency, not being the United Nations or any of its specialized agencies, the World Bank, International Monetary Fund or such other agency as the Central Government may, by notification, specify in this behalf;
  3. a foreign company;
  4. a corporation, not being a foreign company, incorporated in a foreign country or territory;
  5. a multi-national corporation referred to in sub-clause of clause (g);
  6. a company within the meaning of the Companies Act, 1956, and more than one-half of  the nominal value of its share capital is held, either singly or in the aggregate, by one or more of the following, namely:-
  1.  the Government of a foreign country or territory;
  2.  the citizens of a foreign country or territory;
  3.  corporations incorporated in a foreign country or territory;
  4. trusts, societies or other associations of individuals (whether incorporated or    not), formed or registered in a foreign country or territory;
  5.   foreign company;
  1.  a trade union in any foreign country or territory, whether or not registered in such foreign country or territory;
  2. a foreign trust or a foreign foundation, by whatever name called, or such trust or  foundation mainly financed by a foreign country or territory;
  3.  a society, club or other association or individuals formed or registered outside India;
  4.  a citizen of a foreign country;

 

  1.  What is foreign contribution?

Ans. As defined in Section 2(1)(h) of FCRA, 2010, "foreign contribution" means the donation, delivery or transfer made by any foreign source, ─

  1. of any article, not being an article given to a person* as a gift for his personal use, if the market value, in India, of such article, on the date of such gift is not more than such sum** as may be specified from time to time by the Central Government by rules made by it in this behalf;
  2.  of any currency, whether Indian or foreign;
  3.  of any security as defined in clause (h) of section 2 of the securities Contracts(Regulation) Act, 1956 and includes any foreign security as defined in clause (o) of Section 2 of the Foreign Exchange Management Act, 1999.

Explanation 1 – A donation, delivery or transfer or any article, currency or foreign security referred to in this clause by any person who has received it form any foreign source, either directly or through one or more persons, shall also be deemed to be foreign contribution with the meaning of this clause.

Explanation 2 ‒ The interest accrued on the foreign contribution deposited in any bank referred to in sub-section (1) of Section 17 or any other income derived from the foreign contribution or interest thereon shall also be deemed to be foreign contribution within the meaning of this clause.

Explanation 3 ‒ Any amount received, by an person from any foreign source in India, by way of fee (including fees charged by an educational institution in India from foreign student) or towards cost in lieu of goods or services rendered by such person in the ordinary course of his business, trade or commerce whether within India or outside India or any contribution received from an agent or a foreign source towards such fee or cost shall be excluded from the definition of foreign contribution within the meaning of this clause. * In terms of FCRA, 2010 "person" includes ‒

  1. an individual;
  2.  a Hindu undivided family;
  3.  an association; and
  4.  a company

registered under section 25 of the Companies Act, 1956. **The sum, as stated at (i) above, has been specified as Rs. 25,000/- vide the Foreign Contribution (Regulation) Amendment Rules, 2012 [G.S.R. 292 (E) dated 12th April, 2012].

 

  1. Section 2(c)(i) of repealed FCRA, 1976 inter alia defined foreign contribution as the donation, delivery or transfer made by any foreign source of any article, not given to a person as a gift for personal use, if the market value, in India, of such article exceeds one thousand rupees. What limit has been prescribed in FCRA, 2010 in respect of such articles?

Ans. The limit has been specified as Rs. 25000/- through insertion of the following Rule 6A in FCRR, 2011 vide the Foreign Contribution (Regulation) Amendment Rules, 2012 [G.S.R. 292 (E) dated 12th April, 2012]:

"6A. When articles gifted for personal use do not amount to foreign contribution. - Any article gifted to a person for his personal use whose market value in India on the date of such gift does not exceed rupees twenty-five thousand shall not be a foreign contribution within the meaning of sub-clause (i) of clause (h) of sub-section (1) of section 2.

Foreign Contribution Regulation Act, 2010 (FCRA):

Introduction:

This act consolidates the law to regulate the acceptance and utilization of foreign contribution and hospitality by certain individuals or associations.

Foreign contribution means donation, delivery or transfer made by any foreign source.

Grant of certificate of registration:

  • An application is made to Central Government in such form and manner and along with such fee, as may be prescribed.
  • On receipt of application for grant of certificate and after making such inquiry as the Central Government deems fit, may ordinarily within ninety days from the date of receipt of application. 

 

  • Procedure for registration:

 

An application for registration shall be e-filed in Form FC-3. Documents that are required cited below:

  1. Audited statement of accounts of past three years.
  2. Annual Report specifying activities of past three years.
  3. If the association is a registered Trust or Society a certified copy of the registration certificate.
  4. Copy of the Memorandum of Association and/or the Articles of Association as applicable.
  5. List of Main objects and definite programmes for which the contribution is to be accepted / utilised.
  6. Details of names and addresses of the members of the Executive Committee/Governing Council etc. of the Association.
  7. Copy of any prior permission granted to the organization.
  8. Copy of resolution of Governing Body of the organisation, authorizing the registration under FCRA.
  9. Copy of Power of Attorney or the resolution of Governing Body by which the Chief Functionary is authorized to submit FC-3.
  10. List of present members of the Governing Body of the organisation and the office bearers.
  11. Copy of any Journal or other publication of the organization.
  12. 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.
  13. If the association has submitted any application earlier then its reference number should be mentioned.
  14. If the association has received any foreign contribution with or without the prior approval of the Central Government, then the detail should be given.
  15. Details of Bank along through which the foreign contribution shall be received.
  16. A recommendation certificate from any competent authority.
  17. Copy of certificates of exemption or registration issued by the Income Tax Department u/s80G and 12A.

 

Renewal of Certificate:

 

  • Every person who has been granted a certificate shall renewal the respective certificate within the six months before the expiry of the certificate.
  • Application of renewal shall be made to Central Government.
  • Within 90 days of receipt of application Central Government shall renew the certificate

Suspension of certificate:

Where Central Government for some reasons is satisfied that pending consideration of the question of cancelling the certificate, suspend the certificate for such period not exceeding 180 days.

Cancellation of Certificate:

The Central Government if satisfied after making such inquiry as it think fit, by an order, cancel certificate if,

  • The holder of certificate has made a statement which is incorrect or false,
  • The holder of certificate has violated any of terms and conditions,
  • The holder of certificate hasn’t been engaged in any of the activities in its choosen field, etc.

Summary of forms:

  Form FC-1: Intimation to central Government of receipt of foreign contribution by way of gift     

                     from relative

Form FC-2: Application for seeking prior permission of CG to accept foreign hospitality

Form FC-3: Application for registration under FCRA

Form FC-4: Application for prior permission under FCRA for acceptance of foreign contribution.

Form FC-5: Application for seeking renewal of registration certificate

Form FC-6: Account of foreign Contribution for the year ending on 31st March

Form FC-7: Intimation about foreign Contribution (Articles) Account

Form FC-8: Intimation about Foreign Contribution (securities) Account

Form FC-9: Intimation to the Central Government of receipt of Foreign Contribution received by

                      candidate for election

Form FC-10: Application for seeking permission for transfer of foreign contribution to other

                       registered/unregistered persons

 

Frequently Asked Questions (FAQs):

  1. Whether earnings from foreign client(s) by a person in lieu of goods sold or services rendered by it are treated as foreign contribution?

Ans: No. As clarified, foreign contribution excludes earnings from foreign client(s) by a person  in lieu of goods sold or services rendered by it as this is a transaction of commercial nature.

 

  1. What is a foreign source?

Ans. Foreign source, as defined in Section 2(1) (j) of FCRA, 2010 includes:-

  1. the Government of any foreign country or territory and any agency of such Government;
  2. any international agency, not being the United Nations or any of its specialized agencies, the World Bank, International Monetary Fund or such other agency as the Central Government may, by notification, specify in this behalf;
  3. a foreign company;
  4. a corporation, not being a foreign company, incorporated in a foreign country or territory;
  5. a multi-national corporation referred to in sub-clause of clause (g);
  6. a company within the meaning of the Companies Act, 1956, and more than one-half of  the nominal value of its share capital is held, either singly or in the aggregate, by one or more of the following, namely:-
  1.  the Government of a foreign country or territory;
  2.  the citizens of a foreign country or territory;
  3.  corporations incorporated in a foreign country or territory;
  4. trusts, societies or other associations of individuals (whether incorporated or    not), formed or registered in a foreign country or territory;
  5.   foreign company;
  1.  a trade union in any foreign country or territory, whether or not registered in such foreign country or territory;
  2. a foreign trust or a foreign foundation, by whatever name called, or such trust or  foundation mainly financed by a foreign country or territory;
  3.  a society, club or other association or individuals formed or registered outside India;
  4.  a citizen of a foreign country;

 

  1.  What is foreign contribution?

Ans. As defined in Section 2(1)(h) of FCRA, 2010, "foreign contribution" means the donation, delivery or transfer made by any foreign source, ─

  1. of any article, not being an article given to a person* as a gift for his personal use, if the market value, in India, of such article, on the date of such gift is not more than such sum** as may be specified from time to time by the Central Government by rules made by it in this behalf;
  2.  of any currency, whether Indian or foreign;
  3.  of any security as defined in clause (h) of section 2 of the securities Contracts(Regulation) Act, 1956 and includes any foreign security as defined in clause (o) of Section 2 of the Foreign Exchange Management Act, 1999.

Explanation 1 – A donation, delivery or transfer or any article, currency or foreign security referred to in this clause by any person who has received it form any foreign source, either directly or through one or more persons, shall also be deemed to be foreign contribution with the meaning of this clause.

Explanation 2 ‒ The interest accrued on the foreign contribution deposited in any bank referred to in sub-section (1) of Section 17 or any other income derived from the foreign contribution or interest thereon shall also be deemed to be foreign contribution within the meaning of this clause.

Explanation 3 ‒ Any amount received, by an person from any foreign source in India, by way of fee (including fees charged by an educational institution in India from foreign student) or towards cost in lieu of goods or services rendered by such person in the ordinary course of his business, trade or commerce whether within India or outside India or any contribution received from an agent or a foreign source towards such fee or cost shall be excluded from the definition of foreign contribution within the meaning of this clause. * In terms of FCRA, 2010 "person" includes ‒

  1. an individual;
  2.  a Hindu undivided family;
  3.  an association; and
  4.  a company

registered under section 25 of the Companies Act, 1956. **The sum, as stated at (i) above, has been specified as Rs. 25,000/- vide the Foreign Contribution (Regulation) Amendment Rules, 2012 [G.S.R. 292 (E) dated 12th April, 2012].

 

  1. Section 2(c)(i) of repealed FCRA, 1976 inter alia defined foreign contribution as the donation, delivery or transfer made by any foreign source of any article, not given to a person as a gift for personal use, if the market value, in India, of such article exceeds one thousand rupees. What limit has been prescribed in FCRA, 2010 in respect of such articles?

Ans. The limit has been specified as Rs. 25000/- through insertion of the following Rule 6A in FCRR, 2011 vide the Foreign Contribution (Regulation) Amendment Rules, 2012 [G.S.R. 292 (E) dated 12th April, 2012]:

"6A. When articles gifted for personal use do not amount to foreign contribution. - Any article gifted to a person for his personal use whose market value in India on the date of such gift does not exceed rupees twenty-five thousand shall not be a foreign contribution within the meaning of sub-clause (i) of clause (h) of sub-section (1) of section 2.

     
   
     
   
     
   
     
 
     
   
     
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