What is FCRA Registration?

FCRA (Foreign Contribution Regulation Act) registration is a mandatory certification for organisations in India, enabling them to receive foreign contributions legally. Issued by the Ministry of Home Affairs under the FCRA Act, 2010, it allows NGOs, trusts, societies, and Section 8 companies to accept funds for social, religious, educational, and cultural activities.

FCRA registration is valid for five years, the registration requires timely renewal and strict compliance with regulations, including annual return filings, to avoid penalties. The application process is completed online through the FCRA portal.

Eligibility for FCRA Registration

Legal Structure

1. Be registered as a society under the Societies Registration Act of 1860.

2. Be registered as a trust under the Indian Trusts Act of 1882.

3. Be registered as a Section 8 company under the Companies Act 2013.

Existence and Activity

1. It should be in existence for at least 3 years.

2. It has undertaken reasonable activity in its chosen sector for the benefit of society, for which foreign contribution is proposed.

3. Have spent at least ₹10-15 lakhs over the last 3 years on its fundamental operations and activities, excluding administrative expenditures.

Financial Requirements

1. The organisation should submit audited statements of expenses, income, assets and liabilities for the last 3 years to substantiate the ₹10-15 lakh expenditure.

2. Have an FCRA-designated bank account opened with the New Delhi Main Branch of the State Bank of India.

Other Eligibility Conditions

1. The organisation must not have been prohibited from accepting any foreign contribution.

2. The organisation, directors, its office bearers, or key functionaries must not be prosecuted or convicted for:

  • Propagation of sedition or violent methods.
  • Inducing forced religious conversions.
  • Diversion or mis-utilisation of funds.
  • Creating communal disharmony.

3. The acceptance of foreign contributions must not:

  • Endanger the life or physical safety of any person
  • Affect India’s sovereignty, security or public interest

In rare cases, the Central Government may waive the ₹10-15 lakh expenditures limitation. Organisations in the formative stage could apply for prior approval instead of full registration to collect foreign donations from a specific donor.

What is the FCRA Registration Process? A Step-by-Step Guide

STEP 1: Submit Online Application

  • Visit the Ministry of Home Affairs’ FCRA portal and fill out the FC-3 form online.
  • Use Form FC-3A for renewal applications.

STEP 2: Complete Application Accurately

  • Ensure all fields are correctly filled to avoid processing delays.

STEP 3: Send Hard Copy

  • Submit a hard copy of the completed application along with supporting documents to the Ministry of Home Affairs within 15 days.

STEP 4: Prepare Important Documents

  • Organisation’s Charter: Describing its mission and structure.
  • Bank Account Details: Include the authorised FCRA bank account.
  • Audited Financial Statements: Submit at least three years’ worth, showing ₹15 lakh allocated to the organisation’s objectives.

STEP 5: Application Verification

  • The Ministry verifies the documents, typically completing approval within a few months (timeline may vary).

STEP 6: Post-Registration Compliance

  • Annual Returns: File returns detailing foreign contributions and their use.
  • Separate Accounts: Maintain separate FCRA accounts for transparency.
  • Purpose Utilisation: Ensure funds are used only for specified purposes to avoid penalties.

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