FCRA Compliance in India: A Comprehensive Guide for Organizations

The Foreign Contribution Regulation Act (FCRA) is critical for organizations receiving foreign funds in India. Proper compliance ensures legal adherence and boosts transparency. In this blog, discover how to secure FCRA registration, documents required, and why it’s essential.

The Foreign Contribution Regulation Act (FCRA), 2010, regulates foreign contributions to maintain India’s sovereignty, security, and public interest. Organizations must adhere to its provisions when dealing with foreign funds.

FCRA registration is mandatory for:

• Non-Governmental Organizations (NGOs)

• Charitable Trusts

• Societies

• Religious Organizations

1. Check Eligibility

An organization must:

• Be registered under Indian laws (e.g., Societies Registration Act, 1860).

• Operate for at least three years.

• Spend INR 10 lakh or more on core activities in the past three years (excluding administrative costs).

2. Register on the FCRA Portal

Visit the FCRA Online Services Portal (https://fcraonline.nic.in) to create an account. Provide valid email and phone details for correspondence.

3. Complete the Application Form

Log in and fill Form FC-3A for registration or FC-3B for prior permission. Key details include:

• Organizational information

• Dedicated FCRA bank account details

• Foreign donor specifics

4. Submit Required Documents

Ensure the following documents are ready:

1. Registration Certificate/Trust Deed: Proof of legal establishment.

2. Memorandum of Association (MoA)/Articles of Association (AoA): Define objectives and activities.

3. Audited Financial Statements: Income-expenditure, balance sheet, and receipts for the last three years.

4. Activity Report: Document activities conducted in the past three years.

5. Bank Account Proof: A dedicated FCRA account in the State Bank of India, New Delhi.

6. Declaration and Undertaking: Signed by the Chief Functionary for compliance.

7. Details of Governing Body Members: Include identity proofs and contact information.

8. List of Foreign Donors: Specify sources and intended usage of funds.

5. Pay the Application Fee

Submit the fee online. Fees vary for registration and prior permission. Verify the amount before payment.

6. Verification and Issuance

The Ministry of Home Affairs (MHA) evaluates your application. Upon approval, the FCRA certificate is valid for five years.

Renew your FCRA certificate six months before expiry by following the original registration process.

1. Incomplete Documentation: Avoid delays by ensuring all documents are accurate.

2. Bank Account Setup: Verify your FCRA account’s operational status.

3. Application Delays: Stay proactive and follow up with the MHA regularly.

At FinFitAdvisor, we:

• Provide detailed eligibility checks

• Assist in document preparation

• Offer end-to-end registration and renewal support

Q1: Can I accept foreign funds without FCRA registration? 

A: No, FCRA registration or prior permission is compulsory.

Q2: What are the penalties for non-compliance?

A: Fines, suspension, or cancellation of the FCRA certificate.

Q3: Can FCRA registration be transferred to another organization?

A: No, it is non-transferable.

Q4: Are NRI donations considered foreign contributions?

A: Yes, if the donor holds a foreign passport.

Q5: How can FinFitAdvisor assist with rejected applications? 

A: We diagnose issues, correct errors, and resubmit applications successfully.

FCRA compliance is vital for organizations receiving foreign contributions. By following this guide and partnering with experts like FinFitAdvisor, you can simplify the process and ensure full compliance.

Need help with FCRA registration? Contact FinFitAdvisor today at 7827574328 or finfitadvisor@gmail.com. We manage the complexities, letting you focus on your mission!