FCRA was enacted with the objective of regulating the acceptance and utilization of foreign contribution and foreign hospitality by persons and associations working in important areas of national life. The focus of this act is to ensure that foreign contribution and foreign hospitality is not utilized to affect or influence electoral politics, public servants, judges and other people working in important areas of national life like journalists, printers and publishers of news papers. Any organization having a definite cultural, social, educational, religious, economic object shall only accept foreign contribution after satisfying two conditions like:
1. It must register itself under the central government
2. It must agree to receive foreign contribution only through one specified bank account.
FCRA Registration Procedure
Application for registration under FCRA can be filed any time after registration of the organization, but the organization with a considerable past history of activities have a greater chance of convincing the FCRA authorities with regard to genuineness and the relevance of their purpose. Organizations desirous of registering themselves with the FCRA department are required to apply in form FC 8 along with various documents. The FCRA department may ask the intelligence bureau for a report. On the basis of the reports of the intelligence bureau the FCRA department decides whether to accept or reject the application. The FCRA department issues a registration certificate and provides a permanent registration number. The registration number is required to be quoted in all future correspondence and filing of returns and forms. Under certain circumstances application for registration will be refused if it affects the sovereignty and integrity of India.