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Overview

FCRA Registration in India.

FCRA Registration is mandatory for organizations receiving foreign contributions or donations under the Foreign Contribution (Regulation) Act, 2010. This registration ensures that foreign funds are utilized for legitimate and specified purposes, such as social, cultural, educational, religious, or economic activities. Administered by the Ministry of Home Affairs (MHA), FCRA registration helps maintain transparency, accountability, and adherence to legal frameworks for foreign contributions in India.

Importance

1. Legal Compliance : Mandated by law for receiving foreign funds.

2. Transparency : Promotes accountability in utilizing foreign contributions for approved purposes.

3. Access to Foreign Donations : Enables NGOs and non-profits to access international funding.

4. Credibility : Enhances trust among donors by demonstrating compliance.

5. Avoids Penalties : Prevents fines, suspension, or cancellation of licenses for non-compliance.



Documents Required

For FCRA Registration


For Prior Permission (One-Time Foreign Contribution)




Features

Features & Benefits of FCRA Registration in India.

Mandatory for Foreign Contributions
Essential for NGOs, trusts, and societies receiving international funds.
Specific Bank Account Requirement
Contributions must be deposited in a designated FCRA bank account.
Project-Specific Approval
One-time contributions can be received under prior permission.
Periodic Renewal
Registration is valid for 5 years and must be renewed for continued compliance.
Annual Reporting
Organizations must file annual returns detailing foreign contributions and utilization.

FCRA Registration

Transparency
Ensures proper tracking and monitoring of foreign funds.
Compliance Audits
Subject to audits by regulatory authorities.
Penalties for Non-Compliance
Heavy fines or cancellation of FCRA licenses for violations.
Wide Applicability
Covers NGOs, religious groups, educational institutions, and charitable trusts.
Revocation of Registration
Non-compliant organizations risk revocation of their FCRA certificate.



Comparison with Related Service

Feature FCRA Registration NGO Registration CSR Compliance
Purpose Receiving foreign contributions Legal incorporation of NGOs Corporate social responsibility compliance
Regulating Authority Ministry of Home Affairs (MHA) State/Registrar of Societies Ministry of Corporate Affairs
Applicability NGOs receiving foreign funds Charitable trusts and societies Companies with net worth > ₹500 crore
Renewal Requirement Every 5 Years Not Required Annual Compliance Report
Reporting Requirement Annual Return Filing Annual Filing (if registered as a trust) Annual CSR Report



Frequently Asked Questions

Who needs FCRA registration?

NGOs, trusts, and societies receiving foreign contributions for social, cultural, religious, or educational purposes.

What is the validity of FCRA registration?

FCRA registration is valid for 5 years and must be renewed thereafter.

Can an organization receive foreign funds without FCRA registration?

No, except under prior permission granted for one-time foreign contributions.

What happens if FCRA registration is not renewed?

The organization will lose its ability to receive foreign contributions.

Are there restrictions on the use of foreign funds?

Yes, funds must be used strictly for the purposes specified during registration or prior permission.

What are the penalties for non-compliance?

Penalties include fines, suspension, or cancellation of the FCRA certificate.