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FCRA Registration for NGO | Foreign Funding License
Obtain FCRA registration or Prior Permission to receive foreign donations. Expert guidance on MHA rules, eligibility, and ongoing compliance management.
Opening Doors to International Support
Obtain FCRA registration or Prior Permission to receive foreign donations. Expert guidance on MHA rules, eligibility, and ongoing compliance management.
Legally receive foreign contributions for your social, educational, or religious projects. Navigate the strict MHA regulations with expert guidance.
Go global with your social impact. Secure the mandatory license from the Ministry of Home Affairs (MHA) to legally accept foreign donations.
The Foreign Contribution (Regulation) Act, 2010 (FCRA) is the law that regulates the acceptance and utilization of foreign contributions or hospitality by individuals or associations. For an NGO, having an FCRA license is the only legal way to receive donations from foreign sources, including international foundations, foreign governments, and even NRIs (in some cases).
Due to national security and transparency concerns, the Ministry of Home Affairs (MHA) maintains extremely high standards for FCRA issuance and maintenance. The rules have become significantly more stringent after the 2020 amendments, mandating a dedicated 'FCRA Account' at the SBI New Delhi Main Branch and prohibiting the sub-granting of foreign funds to other NGOs.
QuickTaxperts provides specialized advisory to help you navigate this high-stakes registration, ensuring your NGO's history, board profiles, and operational record meet the MHA's rigorous 'fit and proper' criteria.
- Category: Business Incorporations
- Required for receiving any form of foreign contribution (cash or kind).
- Can be obtained via 'Registration' (for 3-year old NGOs) or 'Prior Permission' (for new projects).
- Funds must be received ONLY in the designated SBI New Delhi Main Branch account.
- Administrative expenses are capped at 20% of the foreign funds received.
- Mandatory license for receiving foreign funds
- Choice between Prior Permission and Registration
- Assistance with SBI New Delhi Main Branch account setup
- Expert advisory on strict 2020 & 2022 amendments
Which FCRA Route Should You Choose?
Based on your NGO's age and funding requirements.
- FCRA Registration: For NGOs that have been in existence for at least 3 years and have spent at least ₹15 Lakhs on charitable activities during that period.
- Prior Permission (PP): For newly formed NGOs or those starting a specific project with a committed foreign donor. Valid for a specific amount and a specific donor.
- Key Difference: Registration allows multiple donors over 5 years; Prior Permission is a one-time approval for a specific project/donor.
Eligibility and applicability
We check applicability before filing so the selected registration, licence, or compliance route matches your facts.
- Must be a registered Trust, Society, or Section 8 Company.
- Must have been in operation for at least 3 years (for Registration route).
- Must have spent at least ₹15 Lakhs on its charitable objects in the last 3 financial years.
- The NGO and its board members must not have any criminal or 'anti-national' records.
- The foreign funding must not be for personal use or any activity prohibited under FCRA.
- Must have a functional 'FCRA Bank Account' at the SBI New Delhi Main Branch.
Documents required
Document requirements vary by entity type, state, premises, and authority. These are the usual groups we verify before submission.
- Mandatory Documents: Certified Registration Certificate (Trust Deed/COI); PAN Card of the NGO; Aadhaar and PAN of all Board Members; Audited Financial Statements for the last 3 years; Activity Report for the last 3 years; Darpan Unique ID; Donor Commitment Letter (only for Prior Permission)
Our FCRA Advisory Workflow
A methodical approach to the MHA's strict requirements.
- Step 1: Eligibility Audit: We conduct a deep dive into your NGO's financials and board profiles to ensure you meet MHA's 'fit and proper' standards.
- Step 2: SBI Account Coordination: Assisting you in the mandatory process of opening the FCRA account at SBI New Delhi Main Branch (Form FC-6D).
- Step 3: Online Application: Preparation and filing of Form FC-3A (Registration) or FC-3B (Prior Permission) on the FCRA portal.
- Step 4: Field Inquiry Management: The MHA often directs local IB/police inquiries to verify the NGO's office and activities. We guide you on preparation.
- Step 5: Certificate Issuance: Handling any clarifications from the MHA until the final FCRA Registration or Prior Permission is granted.
Critical Ongoing Compliances
FCRA maintenance is as important as registration.
- Annual Return (FC-4): Mandatory filing of receipts and utilization within 9 months of the financial year-end.
- Zero Returns: Even if no foreign funds were received, a 'Nil' FC-4 return must be filed to avoid penalties.
- Reporting of foreign funds received within 15 days of the end of the quarter.
- Strict monitoring to ensure admin expenses do not exceed 20% of foreign contribution.
Deliverables
After completion, we share organized acknowledgements, references, and next-step guidance for banking, renewals, or future filings.
- FCRA Registration / Prior Permission Certificate
- Designated SBI Account Opening Support
- Compliance Manual for Foreign Funds
- Quarterly & Annual Filing Roadmap
Expert review
FCRA Registration for NGO | Foreign Funding License content is reviewed by QuickTaxperts NGO Advisory, International Funding Specialists.
- Checklist-led review
- Document pre-verification
- Authority-specific next steps
Frequently asked questions
These quick answers cover common planning questions before you request a checklist or quote.
- Can a new NGO get FCRA?: Yes, via the 'Prior Permission' route. You don't need 3 years of existence, but you do need a committed foreign donor and a specific project plan. Registration requires 3 years.
- Is it mandatory to have an account in SBI New Delhi?: Yes. After the 2020 amendment, all foreign contributions must first land in the 'FCRA Account' at SBI Main Branch, New Delhi. You can then transfer them to another local 'Utilization Account'.
- Can I use foreign funds for administrative purposes?: Yes, but only up to 20% of the total foreign contribution received in a year can be used for administrative expenses (salaries, rent, etc.).
- Do donations from NRIs count as foreign contributions?: If the NRI is still an Indian citizen (holds an Indian passport), it is NOT a foreign contribution. If they have taken foreign citizenship (OCI/PIO), it IS a foreign contribution.
- Can I give foreign funds to another NGO?: No. The 2020 amendment strictly prohibits the 'transfer' or 'sub-granting' of foreign contributions to any other association or person, even if they have an FCRA license.
- How long is the FCRA license valid?: An FCRA Registration certificate is valid for 5 years. Prior Permission is valid for a specific amount and specific purpose (one-time).
- What is the penalty for late filing of the FCRA annual return?: Late filing can attract heavy fines and, in many cases, leads to the immediate suspension or cancellation of the FCRA license. There is zero tolerance for late returns.
- Does the MHA visit the NGO office?: Yes, in many cases, the MHA directs the Intelligence Bureau (IB) or local police to verify the NGO's existence, activities, and board member credentials before granting the license.