FCRA Registration & Compliance

What is FCRA registration and compliance?

The Foreign Contribution (Regulation) Act, 2010 controls how Indian organisations receive and use money from foreign sources. An NGO needs either FCRA registration or prior permission from the Ministry of Home Affairs before accepting foreign contributions.

The 2020 amendment tightened the rules significantly: foreign contributions must first be received in a designated account at SBI's New Delhi Main Branch, administrative spending is capped, and transfers to other organisations are barred. Non-compliance can lead to suspension or cancellation.

The key terms

What NGOs need to know:

Foreign contribution

Money, articles or securities from a foreign source, including foreign companies and Indian companies with majority foreign ownership in some cases.

FCRA registration

Permission to receive foreign contributions generally, for organisations with an established track record; valid for five years.

Prior permission

Permission to receive a specific amount from a specific donor for a specific purpose, for newer organisations.

FCRA account

The designated account at SBI New Delhi Main Branch where all foreign contributions must first be received.

Utilisation accounts

Other bank accounts to which funds can be moved for spending.

Administrative cap

Administrative expenses are limited to 20% of foreign contributions received.

FC-4

The annual return of foreign contributions received and used.

Why it matters

FCRA is strictly enforced:

No registration, no foreign funds

Accepting foreign money without registration or permission is an offence.

Cancellations

Registrations are regularly cancelled or not renewed for non-compliance.

The SBI account

Funds received anywhere else violate the Act.

Admin cap

Exceeding the 20% administrative limit is a violation.

No sub-granting

Transferring foreign contribution to other organisations is barred.

Renewals

Missing renewal deadlines means the registration lapses.

Reputation

FCRA problems concern donors and partners.

Who is this for?

Eligibility criteria, such as years of existence and past spending, are set by rules and change; we check current requirements.

Registration or prior permission?

Two ways to receive foreign funds:

What we'll need from you

Registration documents

Trust deed, society registration or incorporation documents.

Audited accounts

Accounts for recent years showing activities.

Activity reports

Evidence of work done.

Key functionaries

Details and KYC of office bearers.

Donor commitment

For prior permission, the donor's commitment letter.

Bank details

For the SBI FCRA account and utilisation accounts.

Pricing is per application, with ongoing compliance quoted annually.

How we handle FCRA

Our approach:

1. 1

   Check eligibility

   We check whether registration or prior permission fits.

2. 2

   Prepare

   Documents, accounts and activity evidence are organised.

3. 3

   Open the account

   The FCRA account at SBI New Delhi Main Branch is opened.

4. 4

   File

   The application is filed on the FCRA portal.

5. 5

   Respond

   Queries from the Ministry are answered.

6. 6

   Comply

   Ongoing books, disclosures and FC-4 returns are handled.

Ongoing compliance

After registration:

Separate books

Keep separate accounts for foreign contributions.

Admin cap

Track administrative spending against the 20% limit.

Disclosures

Make quarterly and other disclosures as required.

FC-4

File the annual return by the due date, with audited statements.

Report changes

Report changes in key functionaries, address or bank details.

Renew

Apply for renewal well before the five-year expiry.

Benefits and responsibilities