FCRA Registration & Renewal

FCRA Registration & Renewal

FCRA REGISTRATION & RENEWAL

In order to regulate the foreign contribution or foreign hospitality received by any individual, association or company the Government of India has consolidated all the laws and regulations relating to such transactions by way of enactment of Foreign Contribution (Regulation) Act, 2010. This was done to create a transparent mechanism for individuals and organizations through E-governance of FCRA related activities and at the same time to discourage any detrimental activities which can be against national interest.
At present FCRA Registration and renewal  is being controlled by the Ministry of Home Affairs, Govt. of India (MHA), New Delhi.

ELIGIBILITY CRITERIA

  • The applicant organization must have been set up with charitable objective of serving the society in any manner like promotion of health, education, art, cultural, religious, sports etc and it must not have been prohibited as per Section 3 of the Foreign Contribution (Regulation) Act, 2010 to accept foreign contribution.

  • The applicant entity  must be registered under Society Registration Act 1860 or Indian Trust Act 1882 or a registered  Section 8 Company under Companies Act, 2013 or  a Liaison Office  (LO) of  Foreign NGO.

  • The applicant entity must have FCRA Bank Account with State Bank of India,  Parliament Street, New Delhi.

There are two types of Registration as under:-

REGULAR REGISTRATION-

In order to be eligible to apply for normal FCRA registration following minimum requirements     must be met with:

  • The applicant must be registered and operating for a minimum period of 3 years.

  • The organization must have spent minimum 10 Lakh rupees in the last 3 years for furtherance of its main objects.  The expenditure so incurred will not include any kind of administrative expenses for assessment of  eligible amount  of expenditure of Rs. 10,00,000 spent by the applicant for its main object.  

  • The accounts of the applicant must have been audited by a Chartered Accountant for last three years atleast.

  • Annual Activities Report for last three years


PRIOR PERMISSION REGISTRATION

Prior permission registration route is available to the organizations those are newly set up or in other words are not in position to met the criteria laid out above for regular registration. Such permission is granted by MHA for specified amount from identified donor for carrying out particular activities,  works or projects.   The applicant must met the following criteria:

  • The applicant must be a society, trust or section 8 Company as per Companies Act, 2013.

  • It must have commitment letter from the donor specifying the amount of donation and its purpose

  • In case,  the foreign donor entity and Indian Donee entity has common members, in that case    the key functionary of Indian donee entity cannot be part of  foreign donor entity, and at least 51% member/office bearer of  Governing Counsel of  Indian Donee entity should not employee/members of  foreign donor entity .

  • In case,  the foreign donor is individual, in that case he cannot be the key functionary of Indian Donee entity.

  • The Governing Counsel of Indian Donee entity should not have more than 49% office bearers /members belonging to one family and their close friends and relatives.     


PROCESS OF FCRA REGISTRATION
 

To register under FCRA, the organization must have a DARPAN ID. For this ID, the organization is required to register itself on DARPAN portal as
provided by the NITI Ayog.
For obtaining FCRA Registration, an application in Form FC-3 is to be submitted online with Ministry of Home Affairs, New Delhi along with scanned copies of all the relevant documents as required. The authority has been very strict in terms of approving the FCRA Registration application as the application along with the documents are analyzed in great detail by the authority.  Thus, it is recommended to take help from expert professionals having requisite experience of the matter.

 

RENEWAL OF FCRA REGISTRATION

FCRA registration has a validity of 5 years, at the end of which it lapses. Thus the organizations are required to file a renewal application for the same. Generally, the registered entity is required to submit a renewal application at least 6 months before the registration lapses. However, if the registered entity is working on ongoing multi-year projects then this renewal application is required to be filed at least 12 months before the FCRA registration get lapses.  The entity has to file fresh application alongwith documents as it is seeking regular FCRA registration as stated above.


Our team of experts, here in PKP can ensure to file error free FCRA Application that will reduce the chances of rejection / re-submission.

 

Frequently Asked Questions


Registration under the Foreign Contribution (Regulation) Act, 2010 (FCRA) is mandatory for any trust, society, NGO, or Section 8 company in India that intends to receive foreign contributions such as donations, grants, or sponsorships from overseas sources.

The primary objective of FCRA registration is to ensure that foreign contributions are received and utilised in a transparent and lawful manner for legitimate social, cultural, educational, economic, or charitable activities. It also enables the government to regulate and monitor the flow of foreign funds into organisations operating in India.
It should be legally registered under the applicable law, such as the Societies Registration Act, 1860, the Indian Trusts Act, 1882, or as a Section 8 company under the Companies Act, 2013.

In addition, the organisation should normally have been engaged in genuine charitable or social activities for a minimum period of three years and should have spent at least ₹15 lakh towards its core objectives during the last three years, excluding administrative expenses. This requirement helps demonstrate the organisation’s credibility, track record, and commitment to its stated objectives.
The organization can obtain prior permission for getting foreign contribution by way of obtaining prior permission from MHA.

Prior Permission is intended for newly established organisations that have not yet completed three years of operation. In such cases, the organisation must have a clearly identified foreign donor and a specific project for which foreign contribution is proposed to be received, along with the committed amount and purpose of the funding.
An organisation seeking FCRA registration must first obtain a DARPAN ID from the portal of the NITI Aayog. This registration is mandatory for NGOs seeking government or regulatory approvals.

After obtaining the DARPAN ID, the organisation can submit its application in Form FC-3 through the online portal of the Ministry of Home Affairs (MHA). The application must be accompanied by the prescribed fee, supporting documents, details of governing body members, and audited financial statements.
Registration granted under the Foreign Contribution (Regulation) Act, 2010 remains valid for a period of five years from the date of approval. It can be renewed further on filing of renewal application within stipulated period under the Act.
An organisation should apply for renewal of its FCRA registration at least six months before the date of expiry of the existing registration.

However, if the organisation is involved in long-term or multi-year projects funded by foreign donors, it is advisable to apply for renewal at least twelve months prior to the expiry date to avoid any disruption in the receipt of foreign contributions and project implementation.
If an application is rejected by the Ministry of Home Affairs (MHA) despite the organization having previously held registration under the Foreign Contribution (Regulation) Act, 2010 (FCRA) should Review the Grounds of Rejection, analyse the specific deficiencies, compliance issues, or procedural lapses mentioned in the order issued by the MHA, if satisfied with ground of rejection, file a Fresh Application after rectifying the deficiencies and ensuring full compliance with the regulatory requirements. Or otherwise following steps are suggested:

Option No. 1: File Review Application: If the organization is not satisfied with the reason of rejection by MHA, in that case it can file a review application before MHA.

Option No. 2: File Writ Petition before Juridicitional High Court: Where appropriate, the organisation may consider to file writ petition against the rejection order under article 226 of constitution of India.
PKP provides comprehensive professional assistance for FCRA registration and renewal. Our services include eligibility assessment, documentation review, preparation of application forms, and filing of applications through the online portal of the Ministry of Home Affairs.

Our team also supports organisations in ensuring proper regulatory compliance, maintaining necessary documentation, and addressing queries raised by authorities. With our structured approach and expertise, we help minimise the risk of rejection or delay and ensure a smooth and efficient application process.