FCRA Prior Permission

FCRA Prior Permission (FC-3B) - Overview

FCRA Prior Permission refers to the initial approval granted by the Ministry of Home Affairs (MHA), Government of India, to organisations that wish to receive foreign contributions but do not have permanent registration under the Foreign Contribution (Regulation) Act, 2010 (FCRA). This permission is specifically designed for organisations seeking foreign donations for a definite cultural, economic, educational, religious, or social program. It is granted for specific projects and specific amounts of foreign contributions from specific donors. To apply for this permission, organisations must submit Form FC-3B.

Why FCRA Prior Permission Exists

The FCRA Prior Permission process is in place for a few key reasons:

• Monitoring Foreign Funding: The Indian government wants to track foreign contributions entering the country. This helps ensure the funds are used for legitimate purposes and don't threaten national security or public order
• Transparency and Accountability: Prior permission allows the government to assess the organisation's capabilities and legitimacy before it receives foreign funds. This promotes transparency and accountability in how these funds are managed
• Preventing Misuse: By requiring permission, the government aims to avoid the misuse of foreign contributions, such as funding illegal activities or promoting ideologies that could destabilise the country.

Who Needs FCRA Prior Permission

Here's who must apply for FCRA Prior Permission:

• Unregistered Organisations: Any individual or organisation that doesn't have a permanent FCRA registration number needs prior permission to receive foreign contributions
• Organisations with Revoked Registration: If the government has cancelled an organisation's FCRA registration, they need prior permission to receive foreign funds again
• Organisations Under Government Scrutiny: In some cases, the government might require an organisation with a valid FCRA registration to obtain prior permission for specific foreign contributions. This could happen if the government has concerns about the source or purpose of the funds.

Criteria for Prior Permission

The Foreign Contribution (Regulation) Act 2010 (FCRA) prioritises the responsible utilisation of foreign contributions within India. While the Act doesn't outline a definitive set of criteria for granting Prior Permission, several factors influence the approval process. Understanding these factors can significantly enhance an organisation's application.

Documents Required for FCRA Prior Permission

• Self-certified Registration Certificate of Association
• Self-certified Memorandum of Association/Trust Deed
• Commitment Letter from the donor organisation and agreement
• Project Report for which FC will be received
• Associations have to upload affidavits of each key functionary.
• Chief Functionary signature
• Seal of the Association

Eligibility Criteria for FCRA Prior Permission

1. Organisation Age: Organisations with less than three years of existence are ineligible for FCRA registration. They may apply for Prior Permission under FCRA, 2010
2. Legal Registration: The organisation must be registered under either the Societies Registration Act, 1860, the Indian Trusts Act, 1882, or Section 8 (formerly Section 25) of the Companies Act, 2013
3. Commitment Letter: Submit a specific commitment letter from the donor specifying the amount of foreign contribution and its intended purpose.

For Indian Recipient Organisations with Common Members with Foreign Donor Organisations:

• Chief Functionary Distinction: The Chief Functionary of the Indian recipient organisation must not be part of the foreign donor organisation
• Governing Body Membership: At least 51% of the office-bearers/members of the Indian recipient organisation's Governing Body should not be members/employees of the foreign donor organisation
• Single Foreign Donor: If the foreign donor organisation is a single person/individual, that person cannot be the Chief Functionary of the recipient Indian organisation. Additionally, at least 51% of the office bearers/members of the recipient organisation's Governing Body should be separate from the donor's family members or close relatives.

Why Vakilsearch?

Vakilsearch has a dedicated team of legal professionals with extensive knowledge of FCRA regulations and the registration process. We can guide you through every step, ensuring accurate documentation and minimal delay.

Vakilsearch provides a simplified online platform for applying and managing your FCRA registration. We take care of the paperwork and communication with authorities, reducing your administrative burden

Vakilsearch goes beyond just registration. We offer ongoing FCRA compliance support, reminding you of reporting deadlines, advising on utilisation of funds, and helping you navigate any regulatory changes.

Vakilsearch's expertise helps minimise the risk of errors or omissions in your application, reducing the chances of rejection or penalties from the MHA.

FAQs