FCRA Registration
The Foreign Contribution Regulation Act (FCRA), 2010, is a critical piece of legislation that monitors the intake and utilisation of foreign funds by non-profit entities in India. Governed by the Ministry of Home Affairs (MHA), FCRA compliance ensures that foreign contributions do not compromise national security or public interest.
Types of FCRA Certifications
Depending on your organisation's age and funding requirements, there are two primary paths:
- Prior Permission (PP):
- Target: Newly formed organisations or those with a specific one-time foreign grant.
- Scope: Valid for a specific project, a specific donor, and a fixed amount.
- Regular Registration (Permanent):
- Target: Established organisations with a minimum 3-year track record.
- Scope: Valid for 5 years, allowing the receipt of multiple contributions from various donors.
2026 Eligibility & Financial Thresholds
To qualify for a regular FCRA registration, an organisation must fulfil these specific criteria:
- Registration Status: Must be a registered Society, Trust, or Section 8 Company.
Track Record: Active operation for at least 3 years in its chosen field (Social, Cultural, Educational, Religious, or Economic).
- Minimum Spend: Must have spent at least ₹15 Lakhs (updated for 2026) on its core objectives over the last three financial years, excluding administrative expenses.
- Clean Record: Neither the organisation nor its office bearers should have been prosecuted or convicted under any law.
Mandatory Document Checklist
The MHA requires high-fidelity digital copies (PDF) of the following:
- Incorporation Docs: Trust Deed, MOA/AOA, or Society Registration Certificate.
- Financials: Audited Balance Sheets, Income & Expenditure, and Receipt & Payment accounts for the last 3 years.
- KYC of Members: PAN and Aadhaar details of all governing members. For foreign nationals, a Passport/OCI card is mandatory.
- NGO Darpan ID: Mandatory registration on the NITI Aayog’s NGO Darpan portal.
- Affidavits: Notarised affidavits from each key functionary as per the prescribed MHA format.
Step-by-Step Registration Workflow
- Application Submission: Filing Form FC-3A (Regular) or Form FC-3B (Prior Permission) on the official FCRA portal.
- Fee Payment: A government fee of ₹10,000 for new registration or ₹5,000 for Prior Permission (via digital payment).
- Verification: The application undergoes scrutiny by the MHA, which often includes a background check by the Intelligence Bureau (IB).
- Field Inspection: Local authorities may conduct a physical verification of your office and projects.
- Certification: Once satisfied, the MHA issues a certificate with a unique FCRA Registration Number.
- Note: The entire process typically takes 90 to 120 days.
- Why Compliance is Non-Negotiable
- Strict Utilisation: Foreign funds cannot be used for speculative investments (like mutual funds or real estate for profit).
- The 20% Rule: Administrative expenses (salaries, rent, etc.) cannot exceed 20% of the total foreign contribution received in a year.
- No Transfer Rule: Foreign funds cannot be transferred to any other organisation, even if that organisation also has an FCRA registration.
- Annual Returns: Form FC-4 must be filed online within nine months of the financial year-end, even if zero foreign funds were received.
Professional Support by Ajay D Kumar & Associates
- The FCRA landscape is highly sensitive. We ensure your organisation remains compliant and "audit-ready":
- Pre-Filing Audit: We review your 3-year financials to ensure they meet MHA's strict core-spending thresholds.
- Annual Compliance (Form FC-4): Managing your year-round filings to avoid heavy penalties or registration cancellation.
- Renewal Management: Filing for renewal (Form FC-3C) at least 6 months before your certificate expires.
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Chartered Accountants