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FCRA Registration

Explore all the details you need about FCRA Registration, tailored for your needs.

FCRA registration is mandatory for accepting foreign contributions in India.

Solocorp helps you obtain FCRA registration smoothly, ensuring compliance and hassle-free approval. Our experts guide you through every step of the process to meet government requirements.

What is FCRA?

FCRA stands for the Foreign Contributions (Regulation) Act, which governs the acceptance of foreign donations by organizations in India. As per this law, any Indian entity must register with the relevant authorities before receiving financial support from foreign sources. Enacted in 1976, the FCRA aims to regulate the flow of foreign funds to NGOs and charitable institutions, ensuring these contributions are utilized properly and transparently within the country.

What is FCRA Registration?

Foreign Contribution Regulation Act (FCRA) registration is a legal requirement for individuals, associations, or companies in India that wish to receive foreign donations or contributions.

Normal Registration

This applies to organisations that have been operational for at least three years and have a proven track record of societal contributions. The organisation must have spent at least Rs. 10 lakhs over the past three years, excluding administrative costs. It should be registered under an Indian statute, such as the Societies Registration Act of 1860 or the Indian Trusts Act of 1882.

Prior Permission for FCRA New Registration

Designed for newly established organisations that may not meet the three-year operational requirement. The organisation must have a specific project and a commitment from a foreign donor regarding the purpose and amount of the donation. Prior permission is granted on a case-by-case basis, depending on the nature of the project and donor commitment.

Benefits of Registering under the FCRA Act

1

Ability to Receive Foreign Donations

FCRA registration enables organisations to receive foreign donations for specific cultural, economic, educational, religious, or social programs without government restrictions.

2

Ensures Transparency

FCRA act registration and obtaining an FCRA license promotes greater transparency by ensuring that NGOs and other trusts involved in social causes properly disclose how foreign funds are raised and spent.

3

Legal Protection and Tax Benefits

Organizations registered under FCRA receive government support, including tax exemptions on income, capital gains, and donations, providing significant legal and financial protection.

4

Support for Social Workers

FCRA status of registration aids social workers by allowing them to identify and analyse the sources of foreign funds received by their clients, offering more freedom for organisations working towards societal welfare.

5

Prevention of Fund Misuse

The FCRA registration system helps the government prevent the misuse of foreign donations, ensuring that funds are used for their intended purposes and in compliance with regulations.

Eligibility Criteria for FCRA Registration

To be eligible for FCRA Act registration, associations must meet legal registration, operational history, and capital asset usage requirements.

Legal Registration

The association should be registered under an existing statute such as: Societies Registration Act, 1860, Indian Trusts Act, 1882, or Section 8 of the Companies Act, 2013.

Minimum Operational History

The organization must have been in operation for at least three years with a total expenditure of at least Rs. 10 lakhs, excluding administrative costs.

Capital Assets Usage

If the organisation has capital assets, the Chief Functionary must provide an undertaking that these assets will be used exclusively for FCRA-related activities.

Eligibility for FCRA Prior Permission

For newly formed organisations seeking prior permission to receive foreign contributions, certain conditions must be met.

  • Legal Registration: The association must be registered under an existing statute such as the Societies Registration Act, 1860, Indian Trusts Act, 1882, or Section 8 of the Companies Act, 2013.
  • Donor Commitment: A letter from the donor specifying the amount and purpose of the foreign contribution must be submitted.
  • Common Members Between Donor and Recipient: If there are common members between the Indian recipient and the foreign donor organisation, certain conditions must be followed:
  • Separation of Roles: The Chief Functionary of the recipient organisation cannot be part of the donor organisation, and at least 75% of the office-bearers of the Indian organisation must not be members or employees of the foreign donor organisation.
  • Individual Donors: For individual donors, the same conditions apply to avoid conflicts of interest and ensure the separation of roles.

What Constitutes Foreign Contribution?

Foreign contributions include any article, currency, or foreign securities.

Articles

  • Any article except personal gifts below Rs. 25,000.

Currency

  • Any currency, whether Indian or foreign.

Foreign Securities

  • Foreign securities are defined by the Securities Contracts (Regulation) Act, 1956, or the Foreign Exchange Management Act, 1999.

Who is Considered a Foreign Source?

A foreign source includes foreign governments, agencies, companies, and individuals.

Foreign Government or Its Agency

  • Any foreign government or its agency.

International Agency

  • Any international agency (excluding the UN, World Bank, IMF, etc.).

Foreign Companies and Multinational Corporations

  • Foreign companies and multinational corporations.

Foreign Citizens, Trusts, Foundations, and Associations

  • Foreign citizens, trusts, foundations, and associations.

Conditions for Registration or Prior Permission

The applicant must meet certain conditions for FCRA registration or prior permission.

Fictitious or Benami Entities

  • The organisation or individual must not be fictitious or benami.

Involvement in Unlawful Activities

  • They should not have been involved in forced religious conversions, communal disharmony, or misuse of funds.

Advocacy of Violent Methods

  • The applicant should not advocate violent methods or engage in sedition.

Threat to National Security

  • The foreign contribution must not jeopardise India’s sovereignty, integrity, security, public interest, or elections.

Endangerment to Public Safety

  • The contribution should not incite an offence or endanger anyone's safety.

Mandatory Requirements for NGO FCRA Registration

To successfully apply for NGO FCRA registration, an organisation must meet the following mandatory requirements.

Legal Registration

  • The NGO must be registered under an applicable statute such as the Societies Registration Act, 1860, Indian Trusts Act, 1882, or Section 8 of the Companies Act, 2013.

NGO Darpan ID

  • The NGO must be registered on the NITI Aayog portal and obtain an NGO Darpan ID, which is required to complete the FCRA registration forms.

FCRA Bank Account

  • The organisation must open a dedicated FCRA bank account at the SBI New Delhi Main Branch. This account is exclusively for receiving foreign contributions.

Aadhaar for Key Officials

  • The Aadhaar number of all key office bearers must be submitted with the application. For foreign members managing the NGO in India, a passport or OCI card is required.

FCRA Registration Documents Required

To register your NGO under the Foreign Contribution Regulation Act (FCRA Act), different sets of documents are required depending on whether you are applying for Normal FCRA Registration or Prior Permission FCRA Registration.

Normal FCRA Registration

Prior Permission FCRA Registration

Renewal of FCRA Registration

FCRA registration is valid for five years, and organizations must apply for FCRA renewal before its expiry to continue receiving foreign contributions. The FCRA renewal process is overseen by the Ministry of Home Affairs (MHA), and it ensures that the organization remains compliant with FCRA Act regulations. Ensure that the FCRA renewal status is tracked to determine whether the validity is extended or not.

FCRA Online Registration Process: Step-by-Step Guide

The FCRA registration process can be complex, but by following the steps carefully, you can successfully register your NGO to receive foreign contributions. Here is a detailed step-by-step guide for the FCRA online registration process:

1

Visit the FCRA Portal

Go to the FCRA online portal provided by the Ministry of Home Affairs (MHA). The official FCRA website is where all registration procedures are initiated.

2

Create a Login ID

On the portal, click on 'Sign Up' to create a login ID and password. Once your account is created, a confirmation message will appear. Log in to the FCRA portal using your newly created login ID and password.

3

FCRA online application for registration

After logging in, choose the relevant registration option from the dropdown list under 'I am applying for.' Select from: FC-3A for FCRA Registration, FC-3B for Prior Permission Registration, FC-3C for FCRA Renewal, or FC-4 for FCRA Annual Return Filing.

4

Fill Out the FC-3 Form

Based on your selected type of registration (FC-3A, FC-3B, FC-3C), fill out the corresponding FC-3 form. Provide the necessary information, including association details, Darpan ID (if available), registration number, and nature of the association.

5

Enter Association and Executive Committee Details

Fill in details about the association, such as: Association Address, Registration Number, Registration Date, Main Object and Nature of the Association. Then enter details of the Executive Committee, including key functionaries. You can add, delete, or edit these details through the 'Add details of Key Functionary' option.

6

Provide Bank Details

Enter the required FCRA bank account details, including: Bank Name, Account Number, IFSC Code, Bank Address. The FCRA account must be opened at SBI New Delhi Main Branch for receiving foreign donations.

7

Upload Required Documents

Upload all the necessary documents in PDF format as per the size and format guidelines provided on the MHA portal.

8

Finalise the Application

Enter the place and date in the designated fields. Review the details carefully and click the Final Submission button to submit your application.

9

Make Payment

After submission, complete the registration by making the required online payment. The government fees will vary depending on the type of FCRA registration (normal, prior permission, or renewal). Once the payment is made, no further changes can be made to the form.

10

Confirmation and Registration

Once the payment is processed, your application is considered submitted. You will receive a confirmation, and the FCRA Act registration process is complete. You can now track the status of your application on the FCRA portal. Also, you can track the FCRA renewal status if you are undergoing the FCRA renewal process.

Filing Annual and Quarterly Returns for NGOs Receiving Foreign Donations

If your NGO or trust is registered and receives foreign donations, you are required to file an annual return with the Ministry of Home Affairs. Additionally, if your total foreign receipts exceed Rs. 1 crore in a financial year, you must also file a quarterly return. The annual return must cover the fiscal year (April 1st - March 31st) and be submitted within nine months after the fiscal year ends, by December 31st at the latest. The return must include a certified balance sheet and statement of receipts and payments from a Chartered Accountant. All returns must be filed using Form FC-4. The FCRA online portal provides a convenient way to submit these returns.

FCRA Bank Account

  • An FCRA Bank Account is a dedicated account required for all foreign contributions received by organizations under the Foreign Contribution Regulation Act (FCRA). It is functioning based on the FCRA account RBI guidelines. All foreign donations must be deposited into an account specifically opened at the State Bank of India (SBI), New Delhi Main Branch. The process of opening an FCRA account typically takes seven days from the application date.
  • Existing FCRA-registered organizations are prohibited from receiving foreign donations in any account other than the designated FCRA account. New applicants, however, are required to open their FCRA account after receiving their FCRA certificate from the Ministry of Home Affairs.
  • This FCRA account at SBI can only be used to receive foreign contributions. No domestic funds or other non-foreign transactions are allowed in this account.

Simplify FCRA Registration with Solocorp!

Registering under FCRA can be a complex process, but Solocorp makes it simple and hassle-free.

Our expert team guides you through each step, ensuring all required documentation is accurately prepared and submitted and tracking registration and FCRA renewal status.

Whether you're applying for normal FCRA registration or prior permission, we handle the entire process from start to finish, helping you meet all legal requirements and receive foreign contributions without delay.

Choose Solocorp for a seamless FCRA registration experience and confidently focus on your organization's mission.

  • 1

    Expert Guidance

    Our team helps you navigate the FCRA registration process, ensuring compliance with all necessary legal requirements.

  • 2

    Accurate Documentation

    We ensure all documentation is correctly prepared and submitted to avoid delays and ensure successful registration.

  • 3

    FCRA Status Tracking

    We track your FCRA registration and renewal status to keep you informed throughout the process.

  • 4

    End-to-End Process Handling

    We manage the entire FCRA registration process, from start to finish, including handling all forms and fees.

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