Introduction
The Foreign Contribution (Regulation) Act (FCRA) was enacted to regulate foreign donations received by Indian organizations, ensuring that such contributions do not affect the sovereignty and integrity of the nation.
Any NGO, charitable trust, society, or Section 8 company that wishes to receive foreign contributions must obtain registration under the FCRA, governed by the Ministry of Home Affairs (MHA). This registration legalizes the process of accepting international donations and enhances transparency and accountability in charitable funding.
Benefits of FCRA Registration
FCRA Registration offers multiple benefits to organizations:
1. Access to Foreign Funds
Organizations can receive foreign investments, grants, and donations from foreign sources, which support their developmental and humanitarian work.
2. Legal Compliance
Registration ensures the organization complies with Indian laws, building trust with government authorities and stakeholders.
3. Enhanced Credibility
An FCRA-registered NGO gains greater credibility with foreign donors, partners, and the public, opening doors for long-term collaboration.
4. Government Support
It becomes easier to receive assistance or work with government schemes that encourage development activities through international collaborations.
5. Long-Term Growth
The ability to receive international funding helps NGOs expand operations, increase their reach, and implement impactful projects.
Eligibility Criteria for FCRA Registration
To apply for FCRA registration, the organization must meet the following criteria:
- Minimum Operational Period: The applicant must be in existence for at least 3 years at the time of registration.
- Registration Status: The organization should be legally registered as a Trust, Society, or Section 8 Company.
- Charitable Objective: Its work must focus on healthcare, education, environment, art, culture, religion, or other social service activities.
- Financial Benchmark: Should have received at least ₹10 lakh in donations over the last 3 years (excluding administrative expenses).
- Accounting Standards: Financial statements must be audited and certified by a Chartered Accountant for the last three years.
Documents Required for FCRA Registration:
Here is a list of documents needed during the FCRA registration process:
- Certificate of Incorporation or Trust Deed
- PAN Card of the organization
- Memorandum of Association (MOA) / Articles of Association (AOA)
- Certificate under Section 12AB of the Income Tax Act
- Digital image and signature of the Chief Functionary
- Copy of resolution passed by the governing body
- Detailed report of activities carried out in the last 3 years
- Audited financial statements for the last 3 financial years
Step-by-Step Procedure for FCRA Registration
The registration process is conducted entirely online via the Ministry of Home Affairs portal:
Step 1: Visit the MHA Portal
Go to the official FCRA portal and click on “Forms”.
Step 2: Choose the Relevant Form
- Form FC-3A – For FCRA Registration
- Form FC-3B – For Prior Permission
Step 3: Create an Account
Click “Apply Online” and complete the sign-up process. A confirmation will appear once the account is created.
Step 4: Log in and Begin Registration
Log in using your credentials and select FCRA Registration to proceed.
Step 5: Fill the FC-3 Form
Provide details about your organization’s name, activities, and key functionaries.
Step 6: Executive Committee Details
Add or update executive committee members by navigating to the relevant section.
Step 7: Upload Required Documents
Upload all required supporting documents in PDF format.
Step 8: Make the Payment
Pay the applicable registration fee using the available online payment options.
Validity of FCRA Registration
The FCRA registration is valid for a period of 5 years. To ensure continuous operations:
- Renewal must be filed at least 12 months before expiry.
- Notifications should be sent to the authorities 6 months prior to expiry.
Non-Compliance and Penalties
Failure to comply with FCRA norms may lead to:
- Suspension or cancellation of registration
- Penalties under FCRA or the Indian Penal Code
- Disqualification from receiving foreign funds
- Seizure of foreign contributions already received
Final Words
FCRA Registration is essential for NGOs and organizations seeking to raise funds internationally. It brings credibility, compliance, and global reach to the organization’s mission and enables long-term growth in charitable and developmental work.
If your NGO or entity is planning to receive foreign donations, it’s critical to get registered under FCRA. Our legal experts can guide you through the complete process — from documentation to portal registration and post-approval compliance.