FCRA Registration is the approval granted by the Ministry of Home Affairs (MHA), Government of India, to an eligible association to receive and utilise foreign contribution in accordance with the Foreign Contribution (Regulation) Act, 2010 and the rules made thereunder.

The Foreign Contribution (Regulation) Act, 2010 regulates the acceptance and utilisation of foreign contribution and foreign hospitality by specified persons and associations. Its objective is to ensure that foreign contribution is not used in a manner detrimental to national interest.

An eligible trust, society, or Section 8 company/association carrying out activities of a definite cultural, economic, educational, religious or social nature may apply, subject to the conditions prescribed under the FCRA.

Yes. An association generally cannot accept or utilise foreign contribution without either:

FCRA Registration; or

Prior Permission from the Central Government for a specific foreign contribution/project.

FCRA Registration permits an eligible association to receive foreign contribution on an ongoing basis, subject to the validity and conditions of its registration.

Prior Permission is generally granted for receiving a specified amount of foreign contribution from a specified donor for a specified project or activity.

A newly established NGO may generally consider the Prior Permission route if it does not satisfy the eligibility requirements for regular registration. Regular FCRA registration requires the applicant to demonstrate the requisite activities and compliance history prescribed under the law.

There is no simple rule that every NGO must merely complete a fixed number of years. The applicant must satisfy the statutory conditions, including having undertaken reasonable activity in its chosen field for the benefit of society. The MHA's guidance specifically refers to this requirement.

The FCRA framework requires the applicant to demonstrate reasonable activity in its chosen field. The assessment is not based merely on the age of the organisation but on its activities, objectives, governance, financial records and overall compliance.

The application generally requires documents and information relating to:

Registration/incorporation of the organisation

Trust Deed/Memorandum & Articles/constitutional documents

PAN of the organisation

Details of office bearers/key functionaries

Details of activities undertaken

Audited financial statements

Income & expenditure statements

Receipt & payment statements

Annual reports/activity reports

Details of existing bank accounts

DARPAN ID

Details relating to the designated FCRA bank account

Other declarations, affidavits and documents prescribed on the FCRA portal.

The exact documents can vary depending upon the nature and circumstances of the applicant.

Yes. The MHA's FCRA guidance requires an applicant seeking FCRA services, including registration, to obtain a DARPAN ID from the NITI Aayog DARPAN portal.

Yes. A dedicated FCRA account is required for receipt of foreign contribution. The FCRA framework requires the designated account with the State Bank of India, New Delhi Main Branch for receipt of foreign contribution.

No. Foreign contribution must be received through the designated FCRA account in accordance with the FCRA requirements.

The organisation may maintain separate utilisation account(s) as permitted under the applicable framework, but the designated FCRA receipt account is distinct from an ordinary domestic account.

The designated FCRA receipt mechanism must be followed. Foreign contribution is first received in the designated FCRA account with SBI, New Delhi Main Branch, after which it may be transferred to permitted utilisation accounts in accordance with the law.

The State Bank of India's New Delhi Main Branch is the designated branch for the FCRA account into which foreign contributions are received. The MHA specifically requires associations seeking FCRA services to have a dedicated FCRA account there.

Generally, no. An organisation should not accept foreign contribution merely because it has applied for FCRA Registration.

If the organisation needs to receive a specific foreign contribution before obtaining regular registration, it may explore the Prior Permission route.

No. Mere filing of an application does not confer FCRA registration. The organisation should receive foreign contribution only after obtaining the appropriate approval.

Form FC-3A is the application form for FCRA Registration.

Form FC-3B is associated with an application for Prior Permission under FCRA.

FCRA registration is generally valid for five years, subject to the statutory framework and continued compliance.

An association registered under FCRA should apply for renewal in Form FC-3C six months before the expiry of its registration certificate.

If renewal is not applied for within the prescribed framework, the registration may cease on completion of its validity period, and the association will not remain eligible to receive or utilise foreign contribution under that registration. The MHA FAQ states that a fresh application would then be required.

Yes. An association registered under FCRA is required to submit its annual return in the prescribed manner.

Importantly, the MHA FAQ states that an annual return is required even where there is NIL foreign contribution.

The annual return is filed electronically in Form FC-4 through the FCRA portal.

The annual return is generally required to be filed within nine months from the end of the relevant financial year, i.e. ordinarily by 31 December following the end of the financial year.

Yes. A NIL return is required even if no foreign contribution was received during the financial year.

No. Foreign contribution must be utilised for the purposes for which it was received and in accordance with the FCRA, the rules and the applicable conditions of registration/prior permission.

Foreign contribution cannot be transferred to another person or association except as permitted under the applicable FCRA provisions. The post-2020 framework significantly restricts transfer of foreign contribution.

Yes, but only within the limits and conditions prescribed under FCRA. Expenditure classified as administrative expenses is subject to the statutory ceiling, unless the applicable approval/exemption mechanism is available.

The organisation should follow the prescribed banking channels and accounting requirements. Foreign contribution should be properly received through the designated FCRA banking mechanism and appropriately accounted for.

Yes. Domestic contributions are not foreign contributions merely because the organisation also has FCRA registration. However, domestic funds and foreign contribution should be properly identifiable and accounted for separately.

Yes, subject to the FCRA banking framework. The designated receipt account and utilisation account(s) must be maintained in accordance with the applicable requirements and reported to MHA where required.

An FCRA association is required to intimate prescribed changes, including relevant changes concerning:

Name of the association

Address

Objectives

Key members/functionaries

Designated FCRA bank account

Utilisation bank account(s)

The MHA's guidance specifically requires prescribed changes to be intimated.

An organisation may amend its constitutional documents in accordance with its governing law, but changes affecting FCRA registration/objectives may require prior intimation/approval under the applicable FCRA framework. Therefore, the organisation should examine FCRA implications before changing its objects.

Yes, subject to the applicable FCRA reporting/intimation requirements. The change should also be properly reflected in the organisation's statutory records.

Changes in key members/office bearers can have FCRA implications. The organisation should determine whether the change requires online intimation, approval or submission of prescribed documents.

Yes, a contribution from an individual who qualifies as a foreign source under FCRA can constitute foreign contribution, subject to the Act and applicable rules.

The FCRA portal clarifies, for example, that contributions received from non-Indian passport holders are treated as foreign source contributions.

Not automatically. The treatment depends upon the donor's status and the source of the contribution under the FCRA definition. Therefore, NRI donations should be examined based on the donor's citizenship/status and the applicable FCRA provisions, rather than assuming that every NRI donation is foreign contribution.

Yes, a foreign company may constitute a foreign source, but the Indian NGO must have the necessary FCRA registration or prior permission and comply with all applicable conditions.

The FCRA definition of foreign source covers specified foreign companies and multinational corporations. The precise classification should be checked under section 2 of FCRA before accepting the contribution.

The answer depends on the legal status and circumstances of the donor and the nature/source of the funds. It should not be assumed that every CSR payment from a company is automatically domestic or foreign. The FCRA definition of foreign source must be examined.

Yes, subject to the organisation having the appropriate FCRA registration or obtaining Prior Permission for the specified donor, amount and project, as applicable.

They serve different purposes:

Registration                             Main purpose

12AB                              Income-tax exemption for eligible charitable/religious institutions

80G                                Deduction to eligible donors for qualifying donations

FCRA                             Regulation/permission for receiving foreign contribution

Having 12AB or 80G registration does not automatically permit receipt of foreign contribution.

It depends on whether the donor/contribution falls within the statutory definition of foreign contribution and whether any specific exemption applies. The donor's status should therefore be checked before accepting the funds.

Receiving foreign contribution without valid registration or prior permission can constitute a violation of FCRA and may result in serious consequences, including penalties and regulatory action.

Yes. The Central Government has statutory powers to suspend or cancel FCRA registration in circumstances specified under the Act, including violations of the Act or conditions of registration.

Cancellation can prevent the association from continuing to receive foreign contribution and may trigger statutory consequences regarding the foreign contribution and assets acquired from it.

Depending upon the circumstances and applicable provisions, an organisation may have statutory remedies such as revision/appeal mechanisms. The appropriate remedy depends on the nature of the order and the facts of the case.

Yes. The FCRA framework provides mechanisms for challenging certain orders, including revision proceedings under section 32. The MHA FAQ states that revision applications are filed electronically.

Yes. The organisation must maintain proper accounts and records of foreign contribution and report the prescribed financial information. The MHA guidance requires audited statements concerning receipt and utilisation of foreign contribution to be submitted electronically.

The organisation should maintain a separate set of accounts and records exclusively for foreign contribution received and utilised, as specifically stated in MHA's FCRA guidance.

Important FCRA Compliance Checklist

Before applying for FCRA Registration, an NGO should ideally verify:

• Valid trust/society/Section 8 company registration
• PAN of the organisation
• Properly drafted charitable/social objects
• DARPAN ID
• Active governing body/key members
• Proper books of accounts
• Audited financial statements
• Evidence of genuine charitable activities
• Annual reports/activity reports
• Domestic bank account and financial records
• FCRA designated bank account arrangements
• No material adverse regulatory history
• Proper documentation of donations and expenditure
• Compliance with Income-tax and other applicable laws
• Review of FCRA eligibility of all office bearers/key functionaries
• Proper documentation supporting the proposed activities

The MHA itself advises applicants to obtain DARPAN ID, submit documents electronically, maintain separate FCRA accounts/records and comply with reporting requirements.