FCRA Registration Hosh February 12, 2025

FCRA Registration

Foreign contributions or income from outside India are regulated under the Foreign Contribution Regulation Act (FCRA). This act ensures that foreign aid does not compromise India’s sovereignty and political integrity. Under FCRA, non-governmental organizations (NGOs) and charitable organizations receiving foreign funds must register with the Ministry of Home Affairs (MHA).

NGOs cannot directly accept foreign donations without FCRA registration or prior approval from the MHA. The registration process follows a prior authorization procedure managed by the FCRA registration department.

Consult Now

4.5

34+ Ratings

Benefits of FCRA Registration

  1. Foreign Investment: Registered entities can receive continuous financial support from foreign organizations, including registered foreign head offices and other international entities.
  2. Compliance: Entities registered under FCRA comply with the necessary regulations, ensuring legal adherence.
  3. Donations: FCRA registration allows organizations to accept donations from foreign sources.
  4. Government Support: Registered organizations can legally receive foreign contributions and government assistance, enabling them to utilize full-state support.
  5. Recognition: NGOs and companies with FCRA registration gain credibility, enhancing their reputation in society.

Eligibility for FCRA Registration

  • Charitable Purpose: The organization must primarily engage in charitable activities or social services without profit motives in areas such as health, education, arts, culture, and entertainment.
  • Minimum Operational Period: The applicant must have been registered and active for at least three years before applying.
  • Accounting Statements: The organization must submit the last three financial years’ statements, duly signed by an authorized accountant, including revenue and expense reports.
  • Minimum Funds Requirement: The NGO must have received at least Rs. 10 lakhs (excluding administrative costs) towards its primary charitable activities.
  • NGO Registration Requirement: The applicant must be registered under one of the following acts:
  • The Trusts Act of 1882
  • The Societies Registration Act of 1860
  • Section 8 of the Companies Act, 2013

Documents Required for FCRA Registration

The following documents are required for FCRA Registration:

  • Certified copy of the certificate of incorporation or trust.
  • PAN details of the non-profit organization.
  • Copy of the founding agreement and articles of association.
  • Certificate issued under Section 12AB of the Income Tax Act.
  • Impression (signature) of the chief functionary.
  • Certified copies of the governing body’s resolution.
  • Detailed activity report for the past three years.
  • Audited financial statements.

Procedure to Apply for FCRA Registration

  • Visit the Official Website – Go to the FCRA online registration portal and click on “Forms.”
  • Select the Registration Type – Choose either:
  • Application for FCRA Registration – Form FC-3A or
  • Application for FCRA Prior Permission – Form FC-3B.
  • Sign Up – Click “Apply Online” and “Sign Up” to create a username and password. Once registered, a confirmation message will appear.
  • Login to Your Account – Use the created username and password to access your account and select “FCRA Registration.”
  • Start the Application – Click on “FC-3” from the title bar to initiate a new registration.
  • Fill in the Details – Enter the organization’s name and contact details.
  • Complete the Executive Committee Form – Select “Executive Committee” from the navigation bar and fill out the required details.
  • Update Key Feature Details – Enter the necessary information in the “Add Key Feature Details” section.
  • Upload Documents & Payment – Upload the required PDF documents and complete the registration process by making the payment through the available options.

Validity of FCRA License

An FCRA registration is valid for 5 years after its approval. If the registered entity is engaged in continuous activities, a renewal application must be submitted at least 12 months before the registration expires. At least six months before to the term’s expiration, the registered entity must notify the other party.

Non-Compliances for FCRA Registration

  • Control and account seizure
  • Up to five times the amount of the foreign donation in fines
  • Confiscation and seizure of the contribution receipt. 

Registration under the Law on the Regulation of Foreign Contributions offers many benefits to organizations engaged in social and charitable activities by facilitating the legal receipt of foreign contributions, expanding funding sources, increasing credibility, and enabling cooperation with international donors and partners.

Get a Consultation by Expert