FCRA Registration

FCRA (Foreign Contribution Regulation Act) Registration is a mandatory approval from the Ministry of Home Affairs that allows NGOs, Trusts, and Societies to receive foreign contributions or donations from abroad. Any organization that wants to receive funds from foreign sources — including individuals, companies, or organizations outside India — must have FCRA registration. Without it, receiving foreign funds is illegal under Indian law.

To be eligible for FCRA registration, an organization must: (1) Be registered as a Trust, Society, or Section 8 Company for at least 3 years, (2) Have 12A registration under the Income Tax Act, (3) Have spent a minimum amount on charitable activities in the past 3 years, (4) Have filed annual income tax returns regularly, (5) Have a proper accounting system, (6) Not have any adverse reports against it. FCRA registration is granted for 5 years.

The FCRA registration process can take 3-6 months depending on the completeness of the application and the processing time of the Ministry of Home Affairs. The application is filed online on the FCRA portal and is reviewed by the MHA. In some cases, additional information or clarifications may be sought. Our team ensures the application is complete and follows up regularly for timely processing.

FCRA Registration is the initial application for receiving foreign funds, granted for 5 years. FCRA Renewal (or re-registration) is the process of renewing the registration after the 5-year validity period expires. Renewal must be applied for within 6 months of expiry. Additionally, organizations with FCRA registration must file annual returns in Form FC-4 every year before December 31.

Funds received under FCRA can only be used for the charitable purpose for which the organization is established. The funds must be deposited in a designated FCRA bank account (SBI branch with FCRA facility). The funds cannot be transferred to another organization without MHA approval. Proper accounts of all FCRA receipts and utilization must be maintained and filed annually.

Organizations with FCRA registration must: (1) File Form FC-4 (annual return) before December 31 each year, (2) Maintain separate accounts for FCRA funds, (3) Get accounts audited by a CA, (4) Ensure FCRA funds are used only for the intended purpose, (5) Not transfer FCRA funds to any other person or organization. Non-compliance can result in suspension or cancellation of FCRA registration.