FCRA REGISTRATION IN INDIA: A Complete Plain-Language Guide for NGOs, Trusts & Social Organisations | Foreign Contribution (Regulation) Act, 2010

1. What is FCRA? — The Big Picture in Simple Words

Imagine your NGO is doing excellent work — building schools, providing healthcare, or supporting rural farmers. A charitable organisation from the USA, UK, or Germany wants to send you money to support this work. Can you just accept it? The answer is: NOT WITHOUT FCRA.

FCRA stands for the Foreign Contribution (Regulation) Act, 2010. It is a law passed by the Parliament of India that controls how Indian organisations (NGOs, trusts, societies, Section 8 companies) can receive money or donations from foreign sources — like foreign governments, foreign citizens, or international organisations.

The FCRA is administered by the Ministry of Home Affairs (MHA), Government of India. The entire process is done online through the FCRA portal at fcraonline.nic.in.

Important Note — FCRA 2020 Amendment The FCRA was significantly amended in 2020. Key changes include: (1) All foreign donations MUST be received only in a special SBI account in New Delhi. (2) Administrative expenses were capped at 20% (was 50% earlier). (3) Sub-granting (giving foreign money to another NGO) is now BANNED. (4) Aadhaar of all key officials is now mandatory. These changes make it very important to understand the current rules before applying.

2. Why is FCRA Required? — The Reason Behind the Law

You might wonder — why does the government need to regulate charitable donations from abroad? Here are the core reasons:

2.1 National Security

Foreign money, if unregulated, could potentially be used to fund activities against India’s national interest — such as political movements, communal tensions, or antigovernmental campaigns. FCRA ensures every rupee that enters India from abroad is accounted for.

2.2 Transparency & Accountability

Without regulation, it would be impossible to track how foreign funds are spent. FCRA forces organisations to maintain separate accounts, get them audited, and file annual reports. This keeps everything transparent.

2.3 Prevent Misuse

In the past, there have been instances where foreign-funded organisations were allegedly involved in activities that were not purely charitable. FCRA provides the government with a tool to monitor, and if necessary, cancel the registration of such organisations.

2.4 Channel Foreign Aid Productively

India receives billions of rupees in foreign aid every year for development work. FCRA ensures this money actually reaches the intended beneficiaries and is used for the stated charitable purposes.

3. Who Needs FCRA Registration?

Any organisation in India that wants to receive money, articles, or donations from a foreign source needs FCRA registration. This includes:

• Charitable Trusts receiving grants from international foundations like Ford Foundation, Gates Foundation, etc.
• Societies running development programmes funded by foreign donors
• Section 8 Companies implementing projects with international aid money
• Religious organisations receiving donations from the Indian diaspora living abroad
• Educational institutions receiving foreign scholarships or research grants
• Healthcare NGOs funded by international health bodies like WHO or UNICEF

Quick Check — Does My Organisation Need FCRA? If the DONOR is a foreign entity, foreign citizen, or foreign government — YES, you need FCRA. If the donor is an Indian company or Indian citizen, even if the company has foreign shareholders, you typically do NOT need FCRA (consult a CA to be sure).

4. Benefits of FCRA Registration

FCRA registration opens a world of opportunities for your organization:

1. You gain the legal authority to accept foreign donations, grants, and contributions without fear of prosecution: Legal Right to Receive Foreign Funds

2. Access to Global Funding: You can apply to international foundations, foreign governments, foreign CSR programmes, and overseas donors — massively expanding your funding sources.

2. Credibility & Trust: An FCRA-registered organisation signals serious compliance to donors, government bodies, and the public. It makes your NGO more trustworthy.

3. Scale Your Impact: Access to foreign funding allows you to expand your programmes, hire more staff, buy better equipment, and serve more beneficiaries.

4. Receive in Foreign Currency: Foreign contributions are received in foreign currency (USD, GBP, EUR, etc.) and converted to INR in your designated SBI account.

5. Long-term Financial Planning: With permanent registration (valid 5 years, renewable), you can plan multi-year projects and build long-term donor relationships.

5. Consequences of NOT Getting FCRA Registration

This is extremely important. Receiving foreign funds WITHOUT FCRA is not just a paperwork issue — it is a CRIMINAL OFFENCE under Indian law.

Consequence	Details
Criminal Prosecution	Violation of Section 11 of FCRA 2010 is punishable with imprisonment up to 3 years AND/OR fine.
Seizure of Funds	All foreign funds received illegally can be seized and confiscated by the government.
Penalty Fine	Fine of up to 5 times the value of the foreign contribution received.
Account Freezing	Bank accounts of the organisation may be frozen.
Organisation Blacklisted	The organisation and its key functionaries may be permanently blacklisted from future FCRA registration.
Reputation Damage	Being caught violating FCRA causes severe reputational damage, making future funding — even domestic — very difficult.
Inspection & Audit	The MHA can inspect and seize all accounts, records, and documents of the organisation.

Warning

Even receiving Re. 1 (one rupee) of foreign contribution without FCRA registration or prior permission is a violation. There is no minimum threshold. The law applies from the very first rupee.

6. FCRA Registration vs. Prior Permission — Detailed Difference

Under FCRA, there are TWO ways an organisation can legally receive foreign donations. Understanding the difference is critical:

Parameter	FCRA Registration (Form FC-3A)	Prior Permission (Form FC-3B)
What is it?	Permanent permission to receive foreign funds on an ongoing basis.	One-time permission for a specific donation from a specific donor.
Who is eligible?	NGO must be at least 3 years old with Rs. 15 lakh+ spent on charitable work.	Any registered NGO — even newly formed ones.
How many donors?	Multiple foreign donors for multiple projects.	Only ONE donor for ONE specific project.
How many times?	As many times as needed during the 5-year valid period.	Only ONCE. New applications are needed every time.
Validity	5 years (renewable via Form FC-3C).	Only for the specific project duration. Not renewable.
Government Fee	Rs. 10,000/-	Rs. 5,000/-
Processing Time	4 to 6 months	2 to 4 months
Renewal	Yes — Form FC-3C, 6 months before expiry.	No renewal. Fresh application each time.
Best For	Established NGOs with regular foreign funding needs.	New NGOs or organisations with a one-time foreign grant.
Commitment Letter Needed?	Recommended but not always mandatory.	YES — mandatory commitment letter from the foreign donor.

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Recommendation If your NGO plans to receive foreign funding more than once, invest in obtaining full FCRA Registration (Form FC-3A). Prior Permission (Form FC-3B) requires a fresh application for every single donation, which is time-consuming and unpractical for ongoing operations.

7. Eligibility Criteria for FCRA Registration

To be eligible for FCRA Registration (Form FC-3A — the permanent type), your organisation MUST meet ALL the following criteria:

Criterion 1: Must Be a Registered Entity

Your organisation must be legally registered in India as one of the following:

• A Charitable Trust registered under the Indian Trusts Act, 1882, or the relevant State Trust Act
• A Society registered under the Societies Registration Act, 1860
• A Section 8 Company (formerly Section 25 Company) registered under the Companies Act, 2013

Unregistered groups, informal committees, or unincorporated associations CANNOT apply for FCRA registration.

Criterion 2: Minimum 3 Years of Active Operations

The organisation must have been actively functioning for at least 3 complete financial years before the date of application. Merely being registered on paper is NOT enough — you must have actual, documented activities.

Criterion 3: Minimum Rs. 15 Lakh Spent on Charitable Activities

During the 3 preceding financial years combined, the organisation must have spent at least Rs. 15,00,000 (fifteen lakh rupees) on its core charitable, educational, social, cultural, or religious activities. IMPORTANT: This is spending on PROGRAMME activities — NOT administrative expenses.

Criterion 4: NGO Darpan Registration

Since the 2020 amendment, every applicant organisation MUST be registered on the NGO Darpan portal (ngodarpan.gov.in) managed by NITI Aayog. You will receive a unique Darpan ID which is required in the FCRA application form.

Criterion 5: Clean Background Record

None of the key functionaries (Chairperson, President, Secretary, Treasurer, Trustees, Directors, Board Members) should have:

• Been convicted of any offence under any law
• Been associated with any previously FCRA-cancelled organisation
• Any adverse Intelligence Bureau (IB) report

Criterion 6: Aadhaar of All Key Functionaries

All key officials of the organisation must provide their Aadhaar number. This was made mandatory by the 2020 amendment for identity verification. Without Aadhaar of all key members, the application will be rejected.

Criterion 7: Exclusively Charitable Objectives

The Trust Deed, MOA, or Memorandum of Association must show purely charitable, educational, cultural, religious, or social purposes. Commercial, personal benefit, or political objectives in the founding documents will lead to rejection.

8. Exemptions — Who Does NOT Need FCRA?

The FCRA law itself mentions certain categories of people who are PROHIBITED from receiving foreign contributions (regardless of FCRA registration):

Who is Prohibited?	Explanation
Election Candidates	Any person standing for election to Parliament, State Legislature, or local bodies.
Political Parties	Any political party or their office bearers.
Government Employees	Judges, government servants, or employees of government corporations.
Cartoonists, Editors, Publishers	Members of certain media organisations (as specified in the Act).
Organisations of Political Nature	Associations that are political in nature (even if not a political party) as notified by the Central Government.
Organisations Notified as Prohibited	Any organisation specifically notified by the MHA as prohibited from accepting foreign contributions.

What About Individuals?

Individual citizens of India can receive foreign contributions ONLY WITH PRIOR PERMISSION from MHA for a specific purpose. This is extremely rare and heavily scrutinized. If you are an individual who wants to receive foreign funds for charitable work, the correct approach is to form an NGO, build a 3-year track record, and then apply for FCRA.

Special Clarification — Indian Company with Foreign Shareholders If an Indian company (e.g., a Pvt. Ltd.) has foreign shareholding but is incorporated in India, and the donation comes from another Indian company or an Indian citizen, it is generally NOT considered ‘foreign contribution’. FCRA applies when the source of the funds is a foreign entity, foreign citizen, or foreign government. However, this can be complex — always consult a Chartered Accountant for correct classification.

9. Documents Required — Complete Checklist

Prepare ALL the following documents BEFORE starting the online application. Incomplete documents are the #1 reason for rejection and delays.

9.1 Organisation Documents

Sr.	Document	Notes
1.	Registration Certificate of the Organisation	Trust Deed / Society Certificate / Section 8 Incorporation Certificate — Self-certified by Chief Functionary
2.	Memorandum of Association / Trust Deed / Byelaws	Complete, signed document — Self-certified by Chief Functionary
3.	PAN Card of the Organisation	Copy of the organization’s PAN
4.	NGO Darpan Registration Certificate with Unique ID	Register at ngodarpan.gov.in if not already done
5.	12A / 12AB Certificate (RNPO Certificate) under Income Tax	Strengthens the application; recommended (Not Mandatory)
6.	80G Certificate	If applicable — strengthens credibility (Not Mandatory)
7.	Proof of Office Address	Rent Agreement + NOC from landlord, OR property ownership document
8.	Board Resolution	Authorising FCRA application + nominating authorised signatories for the FCRA bank account

9.2 Financial Documents

Sr.	Document	Notes
1.	Audited Balance Sheet — Last 3 Financial Years	Prepared and signed by a qualified Chartered Accountant
2.	Income & Expenditure Statement — Last 3 Financial Years	Clearly showing programme expenses vs. admin expenses
3.	Receipts & Payments Account — Last 3 Financial Years	Showing actual cash flows
4.	Auditor’s Report for Each Year	Signed by a qualified CA with membership number
5.	Proof of Rs. 15 Lakh+ Charitable Expenditure	Should be evident in the audited financials (programme activities)

9.3 Activity Documents

Sr.	Document	Notes
1.	Activity Report — Last 3 Financial Years	Detailed report of charitable work done: programmes, beneficiaries, geographic areas, impact
2.	Photographs / Evidence of Activities	Photos of events, projects, beneficiaries — to support activity reports
3.	Project Reports / Completion Reports (if any)	Any formal project documentation

9.4 KYC Documents of Key Functionaries

Sr.	Document	Notes
1.	Aadhaar Card of ALL Key Functionaries	Mandatory since 2020 amendment — Chairman, Secretary, Treasurer, all Trustees/Directors/Board Members
2.	PAN Card of ALL Key Functionaries	Self-certified copy
3.	Passport-sized photographs	Recent photographs of all key functionaries
4.	Self-declaration of no criminal record / no FCRA-cancelled org association	Signed declaration by each key functionary

9.5 For Prior Permission (Form FC-3B) – Additional Documents

Sr.	Document	Notes
1.	Commitment Letter from the Foreign Donor	MANDATORY — stating the amount, purpose, and duration of the contribution
2.	Project Proposal / Plan	Detailed project plan for which foreign funds are being sought
3.	Profile of the Foreign Donor Organisation	Website, registration details of the foreign donor

9.6 Fee Payment

Application Type	Fee Amount	Payment Mode
FCRA Registration — Form FC-3A	Rs. 10,000/-	Online payment on FCRA portal
Prior Permission — Form FC-3B	Rs. 5,000/-	Online payment on FCRA portal
Renewal — Form FC-3C	Rs. 5,000/-	Online payment on FCRA portal

10. Step-by-Step Process for FCRA Registration

Follow these steps carefully, in order:

PHASE 1: Before You Even Apply (Foundation Phase)

1. Complete 3 Years of Genuine Operations

This is the most important prerequisite. Build a documented track record over at least 3 complete financial years. Conduct actual programmes, serve real beneficiaries, and spend real money on charitable activities. Maintain records of everything. Without this, no application will succeed.

2. Register on NGO Darpan

Visit ngodarpan.gov.in and create your organization’s profile. You will receive a unique NGO Darpan ID. This is FREE and takes about 1-2 weeks. This registration is MANDATORY and must be completed before applying for FCRA.

3. Get Audited Financial Statements Prepared

Engage a qualified Chartered Accountant to prepare and sign audited financial statements (Balance Sheet, Income-Expenditure Account, Receipts-Payments Account, and Auditor’s Report) for the last 3 financial years. These are mandatory and must clearly show Rs. 15 lakh+ spent on charitable activities.

4. Prepare Activity Reports

Write detailed activity reports for each of the 3 years. Include: what programmes were conducted, where, how many beneficiaries were served, photographs, project outcomes, and any third-party recognition. The more detailed and genuine the report, the better.

5. Collect All KYC Documents of Functionaries

Gather Aadhaar cards, PAN cards, and photographs of ALL key functionaries — Chairperson/President, Secretary, Treasurer, and all Trustees/Directors/Board Members. Prepare self-declaration letters for each stating no criminal record and no association with FCRA-cancelled organisations.

6. Pass a Board Resolution

Hold a formal meeting of your Board of Trustees / Managing Committee / Board of Directors and pass a resolution: (a) authorising the organisation to apply for FCRA registration, and (b) nominating the authorised signatories for the FCRA bank account. Have this resolution properly dated, signed by all present, and attested by the organisational seal.

PHASE 2: The Online Application

7. Visit the FCRA Online Portal

Go to fcraonline.nic.in. If you are a new user, click ‘Register’ to create your login credentials (username and password). Keep these safe.

8. Start Your Application — Select the Right Form

After logging in, select ‘Apply Online’. Choose the relevant form: Form FC-3A for FCRA Registration (permanent, 5-year) OR Form FC-3B for Prior Permission (one-time). For most established NGOs, Form FC-3A is the right choice.

9. Fill in the Application Form

Carefully fill in all sections of the form:

• Section A: Organisation details — name, registration number, registration date, type, PAN, NGO Darpan ID
• Section B: Key functionary details — Aadhaar, PAN, address, designation of all office bearers
• Section C: Nature and description of activities — detailed description of charitable work, area of operations, beneficiaries
• Section D: Financial summary — total receipts, total expenditure, charitable expenditure for last 3 years
• Section E: Bank account details (this will be updated after SBI account opening)

10. Upload All Supporting Documents

Upload all required documents as PDF files. Ensure PDFs are clear, legible, and under the file size limit. Self-certify all organisational documents with the signature of the Chief Functionary. Do not miss any document from the checklist in Section 9 above.

11. Pay the Application Fee Online

Pay Rs. 10,000 (for FC-3A) or Rs. 5,000 (for FC-3B) online through the payment gateway on the FCRA portal. Keep the payment receipt/acknowledgement. IMPORTANT: Once fee is paid and form submitted, NO CHANGES can be made to the application.

12. Submit and Save Acknowledgement

After submission, save/print the acknowledgement number. This will be used to track the status of your application on the FCRA portal.

PHASE 3: MHA Processing

13. MHA Review and Intelligence Bureau Verification

The Ministry of Home Affairs will review your application. The Intelligence Bureau (IB) conducts background checks on all key functionaries. This process takes 4 to 6 months. MHA may ask for additional documents or clarifications — respond promptly and completely.

14. Receive FCRA Certificate

If approved, MHA issues an FCRA Registration Certificate with a unique registration number. Download and preserve this certificate. It is valid for 5 years from the date of issue.

PHASE 4: After Getting FCRA — Setting Up Bank Accounts

15. Open SBI FCRA Account in New Delhi (Mandatory)

After getting the FCRA certificate, immediately open a designated FCRA account at State Bank of India, Main Branch, 11 Sansad Marg, New Delhi – 110001. This is the ONLY place where foreign contributions can first be received. Carry: FCRA Certificate, PAN card, KYC of authorised signatories, and the Board Resolution.

16. Open a Utilisation Account at Your Local Bank

Open a separate ‘Utilisation Account’ at any scheduled bank near your operational area. You will transfer money from the SBI FCRA account to this utilisation account for day-to-day spending. This makes fund management practical since the SBI account is in Delhi. Both accounts must be reported to MHA.

17. Update Bank Details on FCRA Portal

After opening the SBI account, log in to the FCRA portal and update your bank account details. This ensures the MHA has the correct account information in their records.

11. The SBI New Delhi Account — What, Why & How

The 2020 amendment made the SBI New Delhi account MANDATORY. Here is exactly how the foreign funds flow:

Step	What Happens	Details
1	Donor sends money	Foreign donor transfers USD/GBP/EUR etc. to your NGO’s SBI FCRA account in New Delhi.
2	SBI converts currency	SBI receives the foreign currency and credits INR to your FCRA account.
3	NGO transfers to utilisation account	Your NGO transfers the INR amount from the SBI FCRA account to the local utilisation account.
4	Day-to-day spending	Staff salaries, programme costs, travel etc. are paid from the utilisation account.
5	Annual reporting	Both accounts must be reported in the annual FCRA return (Form FC-4) every year.

 

Key Rule The SBI FCRA account at Sansad Marg, New Delhi is for RECEIVING foreign funds only. Actual utilisation happens from the local bank account. You CANNOT directly receive foreign funds in any other bank account.

12. Mandatory Yearly Compliances After Registration

Getting FCRA registration is just the beginning. After that, every year, certain compliances are MANDATORY. Failure to comply can result in cancellation of registration.

12.1 Annual FCRA Return — Form FC-4

Item	Details
Form Number	Form FC-4
Due Date	31st December every year (for the preceding financial year April-March)
Filed Where?	Online at fcraonline.nic.in
What to Include?	Total foreign contributions received, donor-wise details, utilisation statement, purpose-wise breakdown
CA Audit Required?	YES — CA-audited accounts for FCRA funds must be attached
NIL Return?	YES — Even if NO foreign contribution was received during the year, a NIL return is mandatory
Late Filing Penalty?	5% of total foreign contribution received during the year

12.2 The 20% Administrative Expense Cap

This is one of the most important rules introduced in 2020:

• Maximum 20% of the foreign contributions received can be spent on ADMINISTRATIVE EXPENSES
• Administrative expenses include staff salaries, office rent, utility bills, travel expenses, office supplies, and overhead costs
• The remaining 80% MUST be spent on programme/charitable activities — the actual purpose for which funds were received
• This is calculated annually. If you exceed 20%, it triggers MHA scrutiny and can lead to FCRA cancellation
• Plan your budgets carefully to ensure you stay within this cap

12.3 Separate Books of Accounts

This is mandatory. You MUST maintain separate accounting records for:

• FCRA funds (foreign contribution) separate books
• Domestic funds (Indian donations, grants) — separate books

Mixing FCRA funds with domestic funds in the same accounts or books is a serious compliance violation. Both sets of accounts must be audited by a Chartered Accountant.

12.4 No Sub-Granting (Absolute Ban)

Since the 2020 amendment, FCRA-registered organisations CANNOT transfer any foreign funds to another NGO, individual, or organisation. ALL foreign contributions must be directly utilised by the registered organisation itself for its own programmes. The earlier common practice of large NGOs sub-granting to smaller grassroots organisations is now completely banned.

12.5 Change Intimation — Form FC-6

When to File Form FC-6?	Deadline
Change in key functionaries (new president, new secretary etc.)	Within 15 days of change
Change in registered office address	Within 15 days of change
Change in nature or objectives of activities	Within 15 days of change
Change in bank account details	Within 15 days of change
Change in rules, bylaws, or trust deed	Within 15 days of change

12.6 FCRA Registration Renewal — Form FC-3C

• FCRA registration is valid for 5 years from the date of issue
• Apply for renewal using Form FC-3C at fcraonline.nic.in
• Apply at least 6 MONTHS BEFORE the expiry date
• Fee for renewal: Rs. 5,000/-
• If registration lapses (not renewed on time), the organisation must IMMEDIATELY stop receiving and spending foreign funds
• SBI FCRA account gets frozen on expiry — no transactions allowed until renewed
• Late renewal applications are treated as fresh applications, causing months of delay

12.7 Income Tax Compliance (RNPO)

Alongside FCRA compliance, NGOs must separately comply with income tax laws. This is known as RNPO (Registered Non-Profit Organisation) compliance under the Income Tax Act:

Compliance	FCRA (MHA)	Income Tax / RNPO (CBDT)
Registration	Form FC-3A	Form 10A / 10AB
Annual Return	Form FC-4 by 31 December	ITR-7 (typically by 31 October)
CA Audit	Mandatory for FCRA accounts	Mandatory under Income Tax Act
Spending Rule	80% programme / 20% admin	85% of income for charitable purposes
Renewal Period	Every 5 years	Every 5-10 years
Regulator	Ministry of Home Affairs	Central Board of Direct Taxes

 

Important FCRA and Income Tax compliance are completely separate. Losing FCRA does not affect your income tax exemption. Losing income tax RNPO status does not cancel FCRA. But you need BOTH for a fully compliant NGO. Maintain separate compliance calendars for each.

13. Common Mistakes That Lead to Rejection — How to Avoid

Many FCRA applications are rejected due to avoidable mistakes. Here is a detailed guide to the most common rejection reasons and how to avoid them:

Rejection Reason	Why It Happens	How to Avoid
Insufficient 3-year track record	Organisation has not done genuine activities or cannot prove them	Maintain detailed records of every programme from Day 1. Keep photos, attendance registers, beneficiary lists, media coverage.
Rs. 15 lakh thresholds not met	Financial statements show less than Rs. 15 lakhs on programme activities	Ensure genuine spending on charitable work. Admin costs do NOT count. Have CA clearly shown programme expenses.
Missing NGO Darpan registration	Application filed without completing Darpan registration first	Always complete NGO Darpan registration BEFORE applying. Your Darpan ID is mandatory.
Missing or incorrect Aadhaar of functionaries	Aadhaar of one or more key officials not provided	Collect Aadhaar of ALL officials before starting the application. Even a single missing Aadhaar causes rejection.
Key functionary background issues	A trustee has criminal record or was in FCRA-cancelled org	Do background checks of all officials before applying. Remove or replace any official with adverse background.
Inconsistent documents	Financials don’t match activity reports; different numbers in different documents	Have a CA review all documents for consistency before submission. All figures must match all documents.
Objectives not purely charitable	Trust deed or MOA has commercial or personal benefit clauses	Review your findings carefully. Objectives must be 100% charitable. Amend if needed before applying.
Incomplete form submission	Some fields left blank, wrong form selected, or documents not uploaded properly	Double-check every field. Use the government’s checklist. Verify all PDFs are uploaded and opening correctly.
Unsigned or undated Board Resolution	Board resolution not properly executed	Board resolution must be signed by all present, dated, and bear the organisation seal.
For FC-3B: No donor commitment letter	Prior permission application without donor letter	For Form FC-3B, the foreign donor’s commitment letter is MANDATORY. Get it on their official letterhead.

14. FCRA Registration Timelines at a Glance

#	Activity	Time Required
1	Build 3-year operational track record (prerequisite)	3 financial years (non-negotiable)
2	NGO Darpan registration	1 to 2 weeks
3	CA preparation of audited financials + activity reports	2 to 4 weeks
4	Collecting KYC documents of all functionaries	1 to 2 weeks
5	Filing online application on fcraonline.nic.in	1 day
6	MHA processing + Intelligence Bureau verification	4 to 6 months
7	Receiving FCRA certificate (if approved)	Included in above
8	Opening SBI FCRA account at Sansad Marg, New Delhi	1 to 2 weeks
9	Opening local utilisation bank account	1 week
TOTAL	From application filing to being ready to receive foreign funds	Approximately 5 to 7 months

15. Frequently Asked Questions (FAQs)

Q1. Can a newly formed NGO receive foreign donations?

Not through permanent FCRA Registration — that requires 3 years. However, a new NGO can apply for Prior Permission (Form FC-3B) for a specific donation from a specific donor for a specific project. You will need a commitment letter from the foreign donor.

Q2. Is the SBI New Delhi account mandatory for everyone?

YES, without any exception. All FCRA-registered organisations must receive foreign contributions ONLY in the SBI account at State Bank of India, Main Branch, 11 Sansad Marg, New Delhi – 110001. No other bank account can receive foreign donations.

Q3. What happens if FCRA registration expires without renewal?

The organisation must IMMEDIATELY stop receiving any foreign contributions. Any foreign funds already in the FCRA account are frozen. Renewal applications filed after expiry are treated as fresh applications (4-6 months of processing again). Always apply 6 months before expiry.

Q4. Can FCRA funds be given to another NGO?

1. Since the 2020 amendment, sub-granting is completely banned. FCRA-registered organisations CANNOT transfer any foreign funds to any other organisation or individual. All funds must be directly utilised by the registered organisation.

Q5. Does FCRA registration give income tax exemption?

2. FCRA registration and income tax exemption are completely separate. FCRA (from MHA) allows you to receive foreign funds. Income tax exemption (RNPO/12A/12AB from Income Tax Department) is a separate registration that makes your income tax-exempt. You need both for full compliance.

Q6. What is the minimum expenditure requirement?

For standard FCRA Registration (Form FC-3A), the organisation must have spent at least Rs. 15,00,000 (fifteen lakh rupees) on charitable/programme activities in the 3 preceding financial years combined. Administrative expenses do not count toward this threshold.

Q7. What is the 20% cap on administrative expenses?

Under the 2020 amendment, a maximum of 20% of total foreign contributions received can be spent on administrative costs (salaries, rent, utilities, travel, office expenses). The remaining 80% must go toward the charitable programme activities for which funds were received.

Q8. Can an individual receive foreign donations under FCRA?

Only with specific Prior Permission from MHA for a defined purpose, which is very rare and heavily scrutinized. For anyone wishing to receive foreign funds for charitable work, the recommended path is to form an NGO, build a 3-year track record, and apply for FCRA registration.

16. Key Takeaways & Summary

1. FCRA is mandatory for ANY Indian organisation — trust, society, Section 8 company — to legally receive even a single rupee of foreign contribution. 2. Receiving foreign funds without FCRA is a criminal offence — punishable by up to 3 years imprisonment and/or fine. 3. Two routes: Permanent Registration (FC-3A) for NGOs with 3+ years and Rs. 15 lakh spent; Prior Permission (FC-3B) for new NGOs or one-time grants. 4. Since 2020: All foreign contributions MUST first be received in SBI, Sansad Marg, New Delhi — no exceptions. 5. Post-registration: File FC-4 annually by 31 December, maintain 20% admin cap, keep separate accounts, no sub-granting, intimate changes within 15 days. 6. Apply for renewal (Form FC-3C) at least 6 months before the 5-year registration expires. 7. FCRA and Income Tax compliance are separate. Both are needed for a fully compliant, tax-exempt NGO. 8. Most rejections happen due to incomplete documents, missing Aadhaar, insufficient activity proof, or not meeting the Rs. 15 lakh thresholds. 9. Start planning for FCRA from Day 1 of your NGO — maintain records, spend on programmes, and build your compliance foundation.

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For queries, consult a qualified Chartered Accountant or visit fcraonline.nic.in