FCRA (Foreign Contribution Regulation Act) registration is mandatory for NGOs and not-for-profit entities that wish to receive foreign funding in India. The framework is administered by the Ministry of Home Affairs (MHA) to ensure transparency, national interest, and lawful utilization of overseas funds.
In this Saving Mantra guide, we explain what FCRA is, how foreign funding works in India, and the step-by-step process for FCRA registration, including eligibility, documents, timelines, and ongoing compliance.
What is FCRA?
The Foreign Contribution Regulation Act (FCRA), 2010 regulates the acceptance and utilization of foreign contributions by certain persons or associations. Its objective is to ensure that foreign funds do not adversely affect India’s sovereignty, security, or public interest.
What is Foreign Contribution?
Foreign contribution includes:
- Donations from foreign individuals or organizations
- Grants from foreign foundations or institutions
- Foreign currency received from abroad
- Securities and assets received from foreign sources
(Domestic donations—even from foreign nationals residing in India—are treated as foreign contribution if sourced abroad.)
Who Needs FCRA Registration?
- Trusts, Societies, and Section 8 Companies intending to receive foreign donations
- NGOs working in social, cultural, educational, religious, or economic fields
Types of FCRA Approval
1. FCRA Registration
- For organizations with a minimum 3-year track record
- Suitable for recurring foreign funding
2. FCRA Prior Permission
- For newly formed organizations
- Approval granted project-wise and donor-specific
Benefits of FCRA Registration
- Legal authority to receive foreign donations
- Access to global funding and grants
- Enhanced credibility with international donors
- Structured and transparent fund utilization
Step-by-Step Process for FCRA Registration in India
Step 1: Ensure Legal & Tax Readiness
Confirm that your organization has:
- Valid Trust/Society/Section 8 registration
- Active 12A/12AB registration
- Clean compliance history (no violations)
Step 2: Open FCRA Bank Account
Open a designated FCRA bank account at State Bank of India, New Delhi (Main Branch) as mandated by FCRA rules.
Step 3: Create Account on FCRA Portal
Register on the official FCRA online portal (MHA) using organization details.
Step 4: Choose Application Type
Select FCRA Registration or FCRA Prior Permission based on eligibility.
Step 5: Fill Online Application
Provide details including:
- Organization profile and activities
- Governing body details
- Past financials and activity reports
- Proposed utilization of foreign funds
Step 6: Upload Required Documents
Upload scanned copies of all mandatory documents in the prescribed format.
Step 7: Pay Government Fees
Pay the applicable FCRA application fee online.
Step 8: Scrutiny by MHA
The Ministry conducts background checks, field inquiries (if required), and compliance verification.
Step 9: Grant of FCRA Approval
Upon satisfaction, MHA issues the FCRA Registration Certificate or Prior Permission Letter.
Documents Required for FCRA Registration
- Registration certificate of Trust/Society/Section 8
- MOA/Trust Deed/Bye-laws
- PAN Card of organization
- Aadhaar & PAN of key functionaries
- Activity reports (last 3 years, if applicable)
- Audited financial statements
- FCRA SBI bank account details
Timeline for FCRA Registration
- Typically 6 to 12 months, depending on scrutiny and field verification.
Post-FCRA Compliance Requirements
- Use foreign funds only for approved purposes
- Maintain separate books of accounts
- File annual FCRA return (Form FC-4)
- Intimate changes in office bearers/bank accounts
- Renew FCRA registration every 5 years
Prohibited Uses & Persons
Foreign contribution cannot be used for:
- Political activities
- Personal gain
- Speculative investments
Certain persons/entities are prohibited from receiving foreign contribution under FCRA.
Penalties for Non-Compliance
- Suspension or cancellation of FCRA registration
- Freezing of bank accounts
- Heavy penalties and prosecution
Why Choose Saving Mantra for FCRA & Foreign Funding?
- End-to-end FCRA registration & prior permission support
- Compliance readiness assessment
- Documentation and portal filing expertise
- Post-approval reporting and renewal assistance
- Transparent and professional advisory services
Conclusion
FCRA registration is essential for NGOs seeking foreign funding in India. By following the correct step-by-step FCRA process and maintaining strict compliance, organizations can legally access international funds and scale their impact. Saving Mantra provides expert guidance to navigate FCRA rules, approvals, and ongoing compliance with confidence.
Disclaimer
The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or professional advice. FCRA rules, eligibility criteria, and procedures are subject to change as per government notifications. Readers are advised to consult qualified professionals before applying for FCRA registration or accepting foreign contributions in India.