Fcra registration

LAWYER ASSOCIATES (Querist) 23 January 2020 This query is : Resolved
Our society is registered in july 2019. Previously it was run as an AOP and doing charitable work duly recognised by collector of the city. Now our FCRA registration is denied on the ground that our society is new and it is not 3 years old. I have gone through FCRA Act, in the Act, it is written that applicant organisation should work for reasonable time in charitable activities. Now my view is our society is old but we have registered it in july 2019. What is your suggestion and solution?

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An organisation's FCRA registration was denied because it was established less than three years ago, despite having operated as a recognised charitable entity previously. The discussion clarifies that while the FCRA Act itself requires organisations to have a reasonable history of charitable activity, the specific rule mandating a minimum three-year existence is found in the associated rules and application forms (like FC-3). Organisations that are less than three years old may be eligible to apply for 'prior permission' for specific foreign contributions instead of full registration.

Raj Kumar Makkad (Expert) 23 January 2020
FCRA Registration
Eligibility criteria

An association should be registered either under the Societies Registration Act, 1860 or the Indian Trusts Act, 1882 or under Section 8 (erstwhile Section 25) of the Companies Act, 2013;
An association normally be in existence for at least 3 years and has undertaken reasonable activity in its chosen field for the benefit of the society for which the foreign contribution is proposed to be utilized.
An association should have spent at least Rs.10,00,000/- over the last 3 years on its aims and objects, excluding administrative expenditure.
Statements of Income & Expenditure, duly audited by CA, for last 3 years are to be submitted to substantiate that it meets the financial parameter.
Prior Permission – if an Association is not 3 years old?
Eligibility criteria

An organization with less than 3 years of existence is not eligible for registration. Such organization may apply for grant of prior permission under FCRA, 2010. Prior permission is granted for receipt of a specific amount from a specific donor for carrying out specific activities/projects. For this purpose, the association should meet following criteria:

Should be registered either under the Societies Registration Act, 1860 or the Indian Trusts Act, 1882 or under Section 8 (erstwhile Section 25) of the Companies Act, 2013;
Submit a specific commitment letter from the donor indicating the amount of foreign contribution and the purpose for which it is proposed to be given.

This is a prior condition which you do not fulfill as the existence of the society shall start from the day of the registration so wait for next two years.

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LAWYER ASSOCIATES (Querist) 24 January 2020
Sir i welcome your reply, but i want to know whether it is specifically written in the FCRA Act that organisation should be 3 years old? Because i did not find it, I read that it should be old with reasonable time.

Raj Kumar Makkad (Expert) 25 January 2020
It is specifically mentioned in the Rules, which I have already mentioned above. Kindly again go through the reply.

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LAWYER ASSOCIATES (Querist) 29 January 2020
Sir I have studied the reply again, but i have not found any rule saying that it should be 3 years old. Pls take my innocence in positive sense and guide me.

KISHAN DUTT KALASKAR (Expert) 29 January 2020
Dear Sir,
You may take guidance from concerned persons who are having sufficient knowledge in the issue raised by you.

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LAWYER ASSOCIATES (Querist) 30 January 2020
Sir that is why i am asking my real querry on this platform of Learned Scholars.

Raj Kumar Makkad (Expert) 30 January 2020
You have failed to read "Eligibility Criteria" which clearly mentions the requirement of 3 years. It is surprising to note that you are repeatedly claiming the same thing without reading the reply.

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LAWYER ASSOCIATES (Querist) 10 February 2020
Sir i have read full FCRA Act there is section 12 which talks about eligibility criteria, there is nothing written for the requirement of 3 years. There is only written that organisation should have undertaken reasonable activity in its chosen field

LAWYER ASSOCIATES (Querist) 10 February 2020
In FAQ's on the site of FCRA at page number 6 question no. 2 of eligibility criteria it is written as follows:- (ii) Normally be in existence for at least three years and has undertaken reasonable
activity in its chosen field for the benefit of the society for which the foreign contribution
is proposed to be utilised.

LAWYER ASSOCIATES (Querist) 10 February 2020
Now please tell me whether FAQ's form part of the statue or Act and these are binding on us? FAQ's are not meant to define eligibility criteria, these are to interpret and deliver the meaning of the Act only. FAQ's cannot form new conditions.

Raj Kumar Makkad (Expert) 11 February 2020
FAQ may not form part of the Act but subsequently framed rules as per power given in the Act are not lesser than the Sections of the Act so the eligibility criteria mentioned in the Rules, as narrated above is sufficient to hold the condition of 3 years.

LAWYER ASSOCIATES (Querist) 17 February 2020
Pls take my innocence in +ve way, where is that rule written? What is rule number?

Raj Kumar Makkad (Expert) 17 February 2020
Rule 9. Application for obtaining ‘registration’ or ‘prior permission’ to receive foreign contribution. -
(1) (a) An application under sub-section (1) of section 11 for registration of a person for acceptance of foreign contribution shall be made electronically on-line in Form FC-3, and shall be followed by forwarding the hard copy of the on-line application duly signed by the Chief Functionary of the association together with the required documents.

Raj Kumar Makkad (Expert) 18 February 2020
Aforesaid Rule prescribes to fill FC-3 for the registration which contains the term of 3 years so the form be treated as part of Rules which have been framed under Section (1) of the Act.

Raj Kumar Makkad (Expert) 18 February 2020
Section 11(1) in The Foreign Contribution (Regulation) Act, 2010
(1) Save as otherwise provided in this Act, no person having a definite cultural, economic, educational, religious or social programme shall accept foreign contribution unless such person obtains a certificate of registration from the Central Government: Provided that any association registered with the Central Government under section 6 or granted prior permission under that section of the Foreign Contribution (Regulation) Act, 1976 (49 of 1976), as it stood immediately before the commencement of this Act, shall be deemed to have been registered or granted prior permission, as the case may be, under this Act and such registration shall be valid for a period of five years from the date on which this section comes into force.

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