Foreign contributions or funds received from outside India are regulated under the Foreign Contribution (Regulation) Act (FCRA). The FCRA was enacted to ensure that foreign aid does not compromise India's sovereignty, security, or political integrity. Under this law, Non-Governmental Organizations (NGOs), charitable institutions, and other entities receiving foreign donations must register with the Ministry of Home Affairs (MHA), Government of India.
Since NGOs cannot directly accept foreign donations, they must obtain FCRA registration or prior permission to receive foreign contributions legally.
Benefits of FCRA Registration
✔ Foreign Investment & Support
FCRA registration allows NGOs to receive continuous financial assistance from foreign entities, including international organizations and individuals.
✔ Regulatory Compliance
Registered organizations comply with government regulations, ensuring transparency in foreign contributions.
✔ Legally Accept Foreign Donations
FCRA-registered entities can legally accept and utilize donations from foreign sources.
✔ Government Assistance
Organizations registered under FCRA become eligible for government support and foreign collaborations, increasing their operational efficiency.
✔ Enhanced Credibility & Recognition
FCRA registration enhances the reputation of NGOs, making them more trustworthy in the eyes of donors, partners, and regulatory bodies.
Eligibility Criteria for FCRA Registration
Organizations applying for FCRA registration must meet the following criteria:
📌 Primary Objective
The NGO must be involved in charitable, educational, cultural, religious, or social activities without any profit-making intention.
📌 Operational Period
The organization must have been actively functioning for at least three years before applying for registration.
📌 Financial Statements
The NGO must submit audited financial statements for the last three financial years, signed by an authorized Chartered Accountant.
📌 Minimum Fund Utilization
The organization must have spent at least ₹10 lakh on its main objectives (excluding administrative expenses) in the past three years.
📌 Legal Registration
The entity must be registered under one of the following acts:
✔ The Indian Trusts Act, 1882 (For Trusts)
✔ The Societies Registration Act, 1860 (For Societies)
✔ Section 8 of the Companies Act, 2013 (For Non-Profit Companies)
Documents Required for FCRA Registration
To complete the FCRA registration, the following documents are required:
📎 Certificate of Incorporation / Trust Deed / Society Registration Certificate
📎 PAN Card of the Organization
📎 Details of the NGO, including its objectives & activities
📎 Memorandum of Association (MOA) or Articles of Association (AOA)
📎 Registration Certificate under Section 12AB of the Income Tax Act
📎 Specimen Signature of the Chief Functionary (Attested)
📎 Resolution Passed by the Governing Body
📎 Detailed Activity Report of the NGO for the Last Three Years
📎 Audited Financial Statements for the Last Three Years
Step-by-Step Process for FCRA Registration
🟢 Step 1: Visit the official FCRA website of the Ministry of Home Affairs: https://fcraonline.nic.in/
🟢 Step 2: Choose the appropriate registration form:
🔹 Form FC-3A (For FCRA Registration)
🔹 Form FC-3B (For Prior Permission)
🟢 Step 3: Click on "Apply Online" and create an account by signing up with a valid email ID and mobile number.
🟢 Step 4: Log in using the credentials and select "FCRA Registration" from the menu.
🟢 Step 5: Select "FC-3" from the dashboard to begin a new registration.
🟢 Step 6: Fill in the required details:
🔹 Organization Name & Contact Information
🔹 Executive Committee Members' Details
🔹 Key Features & Objectives of the NGO
🟢 Step 7: Upload all necessary PDF documents, including financial reports and governing body resolutions.
🟢 Step 8: Pay the required FCRA registration fee through the available online payment options.
🟢 Step 9: Submit the application and wait for approval from the Ministry of Home Affairs (MHA).
Validity & Renewal of FCRA Registration
📌 FCRA registration is valid for 5 years from the date of approval.
📌 NGOs must apply for renewal at least 12 months before the registration expires to ensure continuity.
📌 If renewal is not completed in time, the NGO’s ability to receive foreign contributions may be suspended.
Non-Compliance & Consequences
Failure to comply with FCRA regulations may result in:
❌ Suspension or cancellation of FCRA registration
❌ Heavy penalties and legal action
❌ Freezing of foreign contribution accounts
❌ Ineligibility to apply for foreign grants
Final Words
FCRA registration is essential for NGOs and non-profits that rely on foreign contributions to sustain their operations. By obtaining this registration, organizations can legally receive and utilize foreign funding, ensuring compliance with government regulations while expanding their funding opportunities.
For expert assistance with FCRA Registration, compliance, and financial management, consult Nayan Saluja & Company, a trusted Chartered Accountancy firm based in New Delhi, providing professional services across India.
📞 Get in touch with us today!