Major FCRA Compliances

MAJOR FCRA COMPLIANCES

A very under rated, not widely discussed Foreign Contribution Regulation Act, 2010, though, one of very rare law which only requires compliances with respect to Foreign Contribution received. Law was first introduced in 1976 in the era of emergency. The first release of law only required the reporting of Foreign contribution received and spent. As the time passed the requirement of Registration/Prior Permission was introduced, the law became stronger and stringent. It was again the congress government of 2010 who changed FCRA 1976 to FCRA 2010.

Following MAJOR Forms are required to be filed under The Foreign Contribution (Regulation) Act (FCRA), 2010 (All the below given forms are to be filed online only)

Form Number	Purpose	Nature	Due  date of filling
FC-1 (Part-A)	For informing the Government about receiving large gifts from relatives (Who are Foreign Citizen). This applies to all individuals and HUFs. The cut-off is Rs. one lakh in one financial year. (Person has to file this intimation for each receipt after crossing Rs. One lakh during the financial year)	Intimation	Within 30 days of receipt
FC-1 (Part-B)	Providing information about Articles received during the year	Intimation	31st December following the end of the year
FC-1 (Part-B)	Providing information about Securities received during the year	Intimation	31st December following the end of the year
FC-1 (Part-D)	If Any Election Candidate has received any Foreign Contribution during 180 days prior to being nominated. There is no minimum amount limit. (Election candidates are prohibited of taking any Foreign Contribution)	Intimation	Within 45 days of being nominated
FC-2	Persons holding public office should apply in form FC-2 before accepting foreign hospitality. There is no lower cut-off, though a dinner invitation or a lift is exempt.	Permission	14 days in advance
FC-3 (Part – A)	Persons who want to accept foreign contribution regularly should apply in form FC-3 for registration. (Generally NGOs having a proven track record of three years and have spent Rs. Ten Lakhs or more for the object of the trust)	Permission	NA (Generally takes 4 to 6 months to get registered)
FC- 3 (Part – B)	Persons who cannot get FCRA registration should apply for prior-permission. (Prior permission is linked to specific project of NGOs and for a specified sum of Foreign Contribution. Though Foreign contribution may be received in instalments)	Permission	NA (Generally takes 3 to 6 months to get Prior permission)
FC-3 (Part – C)	The FCRA registration is valid for 5 years only so need to apply for renewal in FC -3 Part C	Permission	Ideally 5-6 months before expiry
FC-4 (Includes Auditor’s report)	Form FC-6 is an annual report on how much foreign contribution has been received and used during the financial year. This includes contribution in money as well as in kind. – To be filed by FCRA registered person or having prior permission persons	Annual Return	31st December Following the end of the year.
FC-5	Any FCRA registered person who intends to transfer Foreign contribution to any unregistered person.	Permission	Before transferring such contribution
FC-6	Any FCRA registered person who wants to change Association name or Designated bank account or Utilization Bank Account or more than 50% of Key members.	Intimation	Within 15 days of change

   All FCRA Compliances are compulsory in nature and any violation thereof may lead to penalty     or Imprisonment or both as per the provisions of the act.

   From Bank’s Point of View (Can be used for BANK AUDITS – Concurrent & Statutory)

   Banks are required to report two kinds of transactions to the Government.

   The first is where a remittance has been received by someone without FCRA registration or permission. 

      The second is where a person (Having FCRA registration or not) receives more than one crore rupees in a period of thirty days. These intimations should be sent within 30 days.