FCRA & CSR Registration

CSR Registration
CSR Registration with the Ministry of Corporate affairs is important for all the NGO’s irrespective of Trust, Society or Section 8 Company to get CSR funds from corporates. CSR Registration is not only important but also mandatory for NGO who want to act as an implementing agency for CSR activities.

The objective behind bringing all the NGO's under one umbrella is to implement an efficient monitoring system of CSR spending. CSR-1 registration is completely online and can be done only with certification of Practicing CA, CS or CMA. It takes only 2 days to get the CSR registration online & cost only Rs. 2,500/-.

Post CSR registration and approval, NGO's can apply for registration on CSR Exchange Portal after 30 days from the date of approval. Origin of the FCRA
When the Emergency was declared in 1976, there were many fears of other countries interfering in India's affairs by pumping money into the country through separate organizations. These worries are actually older than one might think; they had been discussed in Parliament as early as 1969.

In order to consolidate these rules (regarding the use of foreign funds) and prohibit their usage for activities deemed other than that of national interest. Implementation of this Act granted more control and scrutiny to the government over the transactions of NGOs from foreign sources.

Eligibility criteria for FCRA registration?
In order to register under the Foreign Contribution Regulation Act (FCRA), the Association must fulfill the following criteria:

The FCRA registration guidelines require that the Association should be a non-profit organization and must be registered under one of the Indian societies laws:

• The Indian Societies Registration Act, 1860 or
• The Indian Trusts Act, 1882 or
• Section 25 of the Companies Act, 1956
• The Association should have been founded with a commitment to social improvement in India and must have completed three years of operation before applying for FCRA registration.
• To be eligible for FCRA registration, the Organisation must have spent at least Rs. 15 Lakh on its core operations for the benefit of society during the course of the last three financial years.
• Statements of Income & Expenditure duly audited by chartered accountants are to be submitted to substantiate that it meets these financial parameters.
• The Organisation must have utilized at least 80% of the foreign contribution on its core activities. Not more than 20% of the funds can be utilized for administrative expenses. For all administrative expenses beyond 20%, central government clearance is required.
• FCRA registration is compulsory for NGOs that receive foreign donations of more than Rs. 15 lakhs per year.
• NGOs that want to receive foreign donations of more than Rs. 1 crore per year must obtain prior permission from the Ministry of Home Affairs.

Documents required for FCRA registration
The following documents are required To register your NGO under the Foreign Contribution Regulation Act (FCRA)

Normal FCRA Registration

• Registration Certificate of Association
• Memorandum of Association/ Trust Deed
• The audited statement of accounts for the last three years
• Activity Report for the last 3 years.
• ID from the NITI Aayog portal
• Adhaar Card of all the office bearers

Prior Permission FCRA Registration

• Registration Certificate of Association
• Memorandum of Association/Trust Deed
• Darpan ID from the NITI Aayog portal
• Adhaar Card of all the office bearers
• Commitment letter from the donor organization and agreement
• Project report for which FC will be received

Mandatory Requirements for FCRA Registration
Darpan ID: Darpan ID is now mandatory to be filled in the FC-3 Forms during FCRA registration. You can obtain a Darpan ID from the NITI Aayog portal.

FCRA Bank Account
FCRA account opened in the SBI New Delhi Main Branch, in which you will receive donations from foreign sources.

Adhaar Card
Adhaar card of key officials is mandatory for FCRA application. A passport or OCI is required in case the member is a foreigner operating the Organisation in India.