Under Section 6 of FCRA, it is clearly provided that any organisation having a definite cultural/ social/ educational/ religious/ economic object shall only accept foreign contribution after satisfying two conditions :
(i) It must registers itself with the Central Government. (ii) It must agrees to receive foreign contribution only through one specific bank account.
Steps involved are as follow, over and above the 2 conditions specified above: (iii) Although FCRA does not distinguish between registered and unregistered organisations, normally organisations registered under Society Registration Act, 1860, the Companies Act, 1956, the Bombay Public Trust Act, 1950 or as a public trust are only eligible for registration. (iv) It is necessary to open and designate one specific bank account for receipt of foreign contribution. This bank account should be only for foreign contribution, and domestic contribution should not be mixed into this account. (v) To apply for registration, Form FC-8 along with enclosures is required to be filed in duplicate to the Secretary, Government of India, Ministry of Home Affairs, Internal Security Wing-FCRA, 4th Floor, Lok Nayak Bhawan, Near Khan Market, New Delhi-110003. (vi) The time limit for making an application for registration has not been prescribed in the Act. Therefore, an application for registering under FCRA can be made any time after the legal constitution of an organisation. (vii) Form FC-8 and Form FC-‘1A’, requires three years audited statements to be enclosed with the application forms. This is a directory provision and the organisations can submit the audited statements for lesser number of years as are available. (viii) It may be difficult for an absolutely new organisation to get FCRA registration because certain past activities and records help the FCRA authorities to determine the genuineness and relevance of the organisation. (ix) Form FC- ‘1A’, also requires enclosures of three years audited statements, but, normally even a new organisation having a confirmed commitment from the donor is entitled to apply for prior permission. And the requirement of three years audited statements is waived accordingly. (x) After the application is made, the FCRA department may make field inquiry with the help of Intelligence Bureau. On the basis of the report submitted by the Intelligence Bureau, the application would be processed and accordingly accepted or rejected. (xi) There is no time limit provided under FCRA for processing of the application. Normally, six months should be taken to process an application for registration. At times, application are delayed. It is important to ensure that the recommendation certificate of the appropriate authority under clause 10A in Form FC-8 is enclosed. It will help in expediting the application. (xii) The Chief functionary is required to give an undertaking regarding the following :
(i) Inform within 30days regarding change of name, address, objects, etc., with evidence. (ii) Not to accept any foreign contribution without prior permission, if more than 50% of the office bearers as are mentioned in the application for registration are changed or replaced. (iii) Not to change the bank account or branch of the bank without prior permission. (iv) Not to accept foreign contribution before the registration is granted or with prior permission only. (xiii) The undertaking given by the Chief functionaries was amended vide notification dt.27.12.1996. Therefore, it can be argued that all organisation registered prior to 27.12.96 are not bound by the undertaking which they have not given. In such circumstances, only those organisations who applied on or after 27.12.1996 are debarred from accepting foreign contribution, in case of a change of more that 50% of the Office bearers. (xiv) It is not necessary for an organisation to possess registration under section 12A of the Income Tax Act before applying for registration under FCRA. But, it is desirable that 12A registration is availed before applying for FCRA registration. (xv) Under Indian laws, a valid charitable organisation can be registered with a foreigner on its Board. Therefore, application for registration can be made by such society having foreigner as its member. The presence of a foreigner may make the FCRA authorities more vigilant and circumspect while processing the application. FCRA authorities normally do not grant registration in such cases. (xvi) Charitable organisations engaged in publishing newspaper are not eligible for registration unless the publication falls in category B of publication under Press Registration of Books Act, 1867. (xvii) A certificate of recommendations from the following authorities is required to be enclosed :
(a) Collector of District (b) Department of the State Government (c) Ministry or Department of the Government of India (xviii) If the application is rejected, an appeal within 60 days from the date of the order can be made to the High Court. (xix) The reasons for refusal are not explicitly, provided in section 6, but the refusal for registration could be on the basis of any of the reason specified in section 10 : (i) the sovereignty and integrity of India; or (ii) the public interest; or (iii) freedom or fairness of election to any Legislature; or (iv) friendly relations with any foreign State; or (v) harmony between religious, racial, linguistic or regional groups, castes or communities.
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