FCRA REGISTRATION (Foreign Contribution Regulation Act, 2010)

1. Introduction

The Foreign Contribution (Regulation) Act, 2010 (FCRA) regulates the acceptance and utilization of foreign donations by NGOs, Trusts, and Societies in India.

Any organization that wants to receive foreign funds must obtain registration or prior permission under FCRA from the Ministry of Home Affairs (MHA).

2. Purpose of FCRA

 To ensure foreign funds do not affect national security.

  To regulate and monitor foreign contributions.

  To promote transparency in accounts and operations of NGOs.

  To prevent misuse of foreign donations.

3. Who Can Apply for FCRA Registration?

Only the following entities are eligible:

1. Registered Trusts

2. Societies (Societies Registration Act, 1860)

3. Section 8 Companies (Companies Act, 2013)

Additionally:

 The organization must be non-profit.

  Should not be religiously or politically motivated.

  Must not be blacklisted or prohibited by MHA.

4. Types of FCRA Registration

FCRA registration is of two types:

A. FCRA Prior Permission

For new NGOs or organizations without 3 years of activities.

Eligibility:

  NGO must have a specific, committed foreign donor.

  Donor must issue a commitment letter stating amount & purpose.

  Project proposal required.

When to Apply:

  Any time before receiving the first foreign donation.

B. FCRA Regular (Permanent) Registration

For organizations with minimum 3 years of substantial activities.

Eligibility Criteria:

  Minimum three years of active work in social sector.

  Minimum expenditure of ₹10 lakh in the last 3 years (excluding capital expenditure).

  Proper audited accounts for 3 years.

  Strong governance and records.

Validity:

  FCRA Registration is valid for 5 years and must be renewed.

5. Documents Required for FCRA Registration

Common Documents for Prior Permission & Regular Registration

  Registration Certificate (Trust/Society/Section 8)

  PAN of the organization

  Detailed activity report (3 years for regular registration)

 Audited financial statements (Balance Sheet, I&E, Receipt & Payment)

  Bank account details (FCRA Bank Account at SBI – New Delhi Main Branch)

  ID and Address proof of all office bearers

  Commitment letter from donor (for Prior Permission)

  Project Report (for Prior Permission)

  Self-declaration and undertaking as per MHA format

6. Procedure for FCRA Registration

1. Create NGO Darpan ID (mandatory)

2. Open FCRA Account at SBI New Delhi Main Branch

3. Login to FCRA Portal (fcraonline.nic.in)

4. Fill Form FC-3A (Regular Registration) or FC-3B (Prior Permission)

5. Upload documents and declarations

6. Pay online fee

7. Wait for verification by MHA (Includes IB background checks)

8. Approval and issue of FCRA Certificate

7. Renewal of FCRA

  FCRA registration must be renewed every 5 years.

  Apply in Form FC-3C at least 6 months before expiry.

Failure to renew leads to automatic cancellation.

8. Compliance After Getting FCRA

Organizations must follow strict annual compliance rules:

Mandatory Requirements

  Maintain an exclusive FCRA bank account.

  File FC-4 Annual Return before 31st December every year.

  Upload financials and activities on the NGO’s website.

  Intimate MHA about any changes (address / board members / bank account).

Prohibited Activities

  Cannot use foreign funds for personal benefit.

  No mixing of domestic funds with foreign funds.

  No transfer of FCRA funds to other NGOs (after 2020 amendment).

  No political or anti-national activities.

9. Benefits of FCRA Registration

  Legally eligible to receive foreign donations.

  Enhances transparency and credibility.

  Expands funding sources internationally.

  Enables partnerships with global NGOs and agencies.

  Strengthens long-term development projects.

10. Consequences of Non-Compliance

  Suspension of FCRA registration.

  Cancellation of FCRA certificate.

  Penalties and prosecution under FCRA Act, 2010.

  Freezing of bank accounts.

11. Conclusion

FCRA registration is essential for NGOs seeking foreign funding. It ensures legal compliance, transparency, and credibility. Organizations must follow strict guidelines laid by the Ministry of Home Affairs to maintain their registration.