NGO FCRA Registration

Introduction

Are you an NGO looking to receive funds from foreign sources? The Union Home Ministry has issued a strict warning to NGOs about heavy penalties for accepting and using foreign funds without valid FCRA registration or after their registration has expired. In this article, we break down the rules, requirements, and steps you need to follow in clear, simple language to help your organisation remain fully compliant with FCRA regulations

Summary of the Home Ministry’s Notification on FCRA Compliance

On January 21, 2025, the Union Home Ministry issued a strict warning to NGOs about penal action for accepting foreign funds without valid registration under the Foreign Contribution Regulation Act (FCRA), 2010. The key points from the notification include:

Mandatory FCRA Registration: No individual or organization can accept foreign contributions without a valid FCRA registration or prior approval from the Central Government.
Proper Utilisation of Funds: Foreign contributions must be used solely for the purposes for which they were granted.
Timely Renewal: Organizations must renew their FCRA registration certificate at least six months before it expires.
Restrictions After Expiry: NGOs whose FCRA registration has expired or been cancelled are prohibited from receiving or using foreign contributions

What is FCRA Registration?

FCRA registration is a mandatory process under the Foreign Contribution Regulation Act (FCRA), 2010, that permits individuals, associations, or companies in India to legally receive foreign donations or contributions. Governed by the Ministry of Home Affairs, this registration ensures foreign funds are used transparently and strictly for their intended purposes

FCRA Registration for NGOs

Non-Governmental Organizations (NGOs) seeking to receive foreign funding must comply with the FCRA provisions. The Ministry of Home Affairs (MHA) offers two ways to comply: permanent registration or prior permission for specific contributions.

Permanent FCRA Registration

NGOs that have been operational for at least three years can apply for permanent FCRA registration. The application requires submitting Form FC-3A along with supporting documents for approval. This option is ideal for established organizations with a proven record of social work. For one-time foreign contributions, NGOs may also seek prior permission from the MHA’s FCRA Section.

Prior Permission for Accepting Foreign Donations

Newly formed NGOs that have not yet completed three years of operation must obtain prior permission before accepting foreign funds. They must have a clearly defined project and a confirmed commitment from the foreign donor specifying the donation’s purpose and amount. The MHA reviews each request individually based on the project details and donor commitment. Applications for prior permission are submitted through Form FC-3B. For ongoing or multiple donations, permanent registration is advisable

Why Do NGOs Need FCRA Registration?

FCRA registration is essential for NGOs to legally accept foreign contributions, ensuring the funds are used appropriately and transparently. Compliance helps NGOs avoid legal penalties, maintain credibility, and continue receiving international support. Without FCRA registration, NGOs risk fines, confiscation of funds, and the inability to accept foreign donations

Essential Requirements for FCRA Registration of NGOs

To obtain FCRA registration, NGOs must meet the following key criteria:

Legal Registration: The NGO must be legally registered under a recognized Indian law such as the Societies Registration Act, 1860, the Indian Trusts Act, 1882, or Section 8 of the Companies Act, 2013.
NGO Darpan ID: Registration on the NITI Aayog’s NGO Darpan portal is mandatory. This ID is a prerequisite for submitting the FCRA application.
Designated FCRA Bank Account: The NGO must open a dedicated bank account exclusively for receiving and utilizing foreign contributions, as mandated under FCRA rules.
Aadhaar and Identity Documents for Key Functionaries: The Aadhaar numbers of all key office bearers must be submitted along with the application. For foreign nationals managing the NGO, valid passport or OCI card details are required

FCRA Bank Account Requirement for NGOs

To comply with the Foreign Contribution Regulation Act (FCRA), NGOs must maintain a dedicated bank account specifically for receiving foreign contributions. This account must be entirely separate from other operational or domestic accounts. The account details are required at the time of FCRA application submission, and the Ministry of Home Affairs (MHA) will officially notify the bank to monitor fund usage and report any irregularities.

Existing NGOs with FCRA registration must ensure that no foreign contributions are received in any account other than their designated FCRA account. For new applicants, the FCRA bank account should only be opened after the MHA issues the FCRA registration certificate

FCRA Registration Renewal for NGOs

FCRA registration is valid for a period of five years. NGOs must apply for renewal well in advance to continue receiving foreign contributions without interruption.

According to current regulations, the renewal application must be submitted at least six months prior to the certificate’s expiry date. Delayed applications can result in penalties or suspension of the NGO’s ability to receive foreign funds

Documents Required for FCRA Registration and Renewal

Here’s a checklist of documents required for different stages of the FCRA process:

1. Permanent FCRA Registration

Self-certified registration certificate of the NGO
Self-certified Memorandum of Association or Trust Deed
Activity report for the last three years
Audited financial statements for the past three years

2. Prior Permission

Self-certified registration certificate of the NGO
Self-certified Memorandum of Association or Trust Deed
Commitment letter and agreement from the foreign donor
Detailed project report for which the foreign funds are intended

3. FCRA Registration Renewal

Self-certified registration certificate of the NGO
Self-certified Memorandum of Association or Trust Deed
Copy of the original FCRA registration certificate issued by MHA

Ensuring accurate documentation and timely compliance will help NGOs avoid delays or complications in receiving foreign contributions under FCRA

Procedure for NGO FCRA Online Registration/Renewal

Step 1: Visit the FCRA Portal

Go to the official FCRA Portal of the Ministry of Home Affairs. Click on the “Services under FCRA” tab to begin the process.

Step 2: Choose the Relevant Application

Select the appropriate form based on your need:

FC-3A – For FCRA Registration
FC-3B – For Prior Permission
FC-3C – For FCRA Renewal
FC-4 – For Annual Return Filing

You will be redirected to the corresponding application page.

Step 3: Start the Application

Click on the “Click to Apply Online” button on the respective page.

Step 4: Register or Log In

New User? Click “Sign Up Here” to create an account.
Existing User? Log in using your credentials.

Step 5: Create Login ID

During signup, create a Login ID and password. Upon successful registration, a confirmation message will be sent. Use these credentials to log in.

Step 6: Select Application Type

After logging in, choose the appropriate application type from the dropdown under “I am applying for”:

FC-3A (Registration)
FC-3B (Prior Permission)
FC-3C (Renewal)
FC-4 (Annual Return)

Step 7: Fill Out the FC-3 Form

Based on the selected form (FC-3A/B/C), provide the following:

NGO registration details
Darpan ID (if available)
NGO’s nature and objectives
Other required information

Step 8: Enter NGO & Executive Committee Details

Input the following:

NGO’s address, registration number, and date
Main objectives and area of operation
Details of the Executive Committee/Key Functionaries (add/edit as needed)

Step 9: Provide FCRA Bank Details

Fill in details of the FCRA-designated bank account:

Bank Name
Account Number
IFSC Code
Bank Address

Note: The account must be opened at SBI, New Delhi Main Branch, as mandated for receiving foreign contributions.

Step 10: Upload Required Documents

Upload all necessary documents in PDF format, ensuring compliance with file size and format requirements specified on the portal.

Step 11: Finalize the Application

Review all details carefully. Fill in the place and date, then click “Final Submission” to complete the application form.

Step 12: Make Online Payment

Pay the application fee online. The fee varies based on the application type (Registration, Prior Permission, or Renewal).

Important: Once payment is made, no further changes can be made to the form.

Step 13: Confirmation and Tracking

After successful payment, your application will be processed. You will receive a confirmation, and the registration/renewal will be initiated. Track the status of your application directly on the FCRA portal

Filing FCRA Annual Return

If your NGO or trust is registered under the Foreign Contribution Regulation Act (FCRA) and receives foreign donations, you are required to file an annual return with the Ministry of Home Affairs (MHA).

Key Requirements:

Period Covered: The return must be filed for every financial year (1st April to 31st March).
Due Date: The return must be submitted by 31st December following the end of the financial year.

What to Submit:

Form FC-4:
The annual return is filed online using Form FC-4, available on the FCRA Online Portal.
Financial Statements:
Attach the following documents, certified by a Chartered Accountant:
- Balance Sheet
- Statement of Receipts and Payments
- Income and Expenditure Statement (if applicable)
Utilization Details:
Clearly mention:
- Total foreign contribution received
- Purpose-wise utilization of funds
- Bank account details used for FCRA funds

Nil Return is Mandatory:

Even if no foreign contribution was received or utilized during the financial year, a ‘Nil’ return must still be filed

How to Check the Validity of Your FCRA Registration Certificate

Go to the FCRA Portal:
Visit the official FCRA portal managed by the Ministry of Home Affairs.
Access the Registration Search:
Click on the “FCRA Registration Number” section.
Enter Access Code:
Input the Access Code displayed on the page to proceed.
Review Registration Details:
View the current status and validity of your FCRA certificate.
- If your certificate has expired, make sure to renew it promptly to continue lawfully receiving foreign contributions

Penalties for FCRA Non-Compliance

The Government of India strictly enforces compliance with the Foreign Contribution Regulation Act (FCRA). NGOs and organizations receiving foreign funds without proper registration or failing to meet reporting obligations may face significant penalties.

Below is a summary of the key violations and their corresponding penalties under FCRA:

Violation	Penalty
Accepting foreign contributions without FCRA registration	₹1,00,000 or 30% of the foreign contribution received, whichever is higher
Failing to report foreign contribution receipts on time	5% of the total foreign contribution received in the financial year
Failing to report opening of foreign contribution bank accounts on time	₹10,000 per account not reported within the prescribed time
Failing to provide required details within the time limit	₹10,000 per instance of delayed reporting
Failing to upload mandatory information on the NGO’s website	₹10,000 per instance of non-compliance

Important:

Non-compliance may also result in suspension or cancellation of your FCRA registration, which prohibits the receipt of any foreign contribution. It is essential to follow all FCRA guidelines and deadlines meticulously

Avoid Penalties – Secure Your NGO’s FCRA Registration Now!

Don’t put your NGO at risk of penalties! Make sure your FCRA registration is active or renew it well before it expires. Our IndiaFilings experts will simplify the entire process for you, ensuring it’s quick and hassle-free.

Start today and stay fully compliant with FCRA rules

About the Author

Rohan

Renu Suresh is a skilled writer known for transforming complex legal concepts into clear, practical guidance. Her insightful articles equip entrepreneurs with the essential knowledge to navigate business laws confidently, helping them successfully launch and manage their ventures

June 1, 2025