FCRA (Foreign Contribution Regulation Act) was originally enacted in the year 1976 and after that revised in 2010. It establishes registration prerequisites and expenditure limitations for Indian non-profit organizations receiving foreign contributions. The most recent Changes/ Amendments of the FCRA brought in additional restrictions, banning sub granting among FCRA registered organizations, setting a severe cap on administrative spending, and further centralizing control of the FCRA funding with the State Bank of Delhi and the Ministry of Home Affairs.          

GOVERNING BODY

             Ministry of Home Affairs Government of India.

ACT

 Foreign Contribution Regulation Act 2010.

An Act to consolidate the law to regulate the acceptance and utilisation of foreign contribution or foreign hospitality by certain individuals or associations or companies and to prohibit acceptance and utilisation of foreign contribution or foreign hospitality for any activities detrimental to the national interest and for matters connected therewith or incidental thereto.

THE EVOLUTION OF THE FCRA REGULATIONS OVER TIME.

 

FCRA 1976

FCRA 2010

FCRA Amendments 2020

        Activity

Regulate the acceptance and utilization

Regulate the acceptance and utilization

Streamline compliance and enhance transparency

        Material

Foreign contribution or foreign hospitality

Foreign contribution or foreign hospitality

Foreign contribution only in designated accounts

       Receivers

Persons or associations

Individuals or associations or companies

Prohibited for public servants and stricter rules for NGOs

         Players

1. Parliamentary institutions

  

Prohibition on transfer of foreign contributions

2. Political associations

Aadhaar required for registration

3. Academic and other voluntary organizations

Administrative expenses capped at 20%

4. Individuals working in important areas of national life

  

Objective

Function in a manner consistent with the values of sovereign democratic republic

[Prevent] any   activities detrimental to the national interest

Strengthen compliance and accountability

STEPS TO OBTAIN AN FCRA LICENSE

  1. ELIGIBILITY CHECK
  • Must be registered as a society, trust, or Section 8 company under relevant Indian laws.
  • Should have been in existence for at least three years and actively engaged in activities benefiting society.
  • Must have spent at least ₹10-15 lakhs on its objectives over the last three years (excluding administrative expenses).
  • Audited financial statements for the last three years are required to substantiate these expenditures
  1. OBTAIN NGO DARPAN ID

The organization must register on the NITI Aayog's NGO Darpan portal to get a unique ID, which is mandatory for FCRA registration.

  1. OPEN AN FCRA-DESIGNATED BANK ACCOUNT

A dedicated bank account must be opened at the New Delhi Main Branch of the State Bank of India for receiving foreign contributions.

  1. PREPARE REQUIRED DOCUMENTS
  • Registration certificate or trust deed of the organization.
  • Memorandum of Association or Articles of Association showing aims and objectives.
  • Audited financial statements for the last three years (income, expenditure, assets, liabilities)
  • Activity report detailing achievements and activities over the past three years.
  1. SUBMIT ONLINE APPLICATION

Visit the Ministry of Home Affairs’ FCRA portal and fill out Form FC-3 online:

  • Use Form FC-3A for renewal applications.
  • Provide accurate details about your organization, objectives, activities, financials, and key personnel.
  1. SEND HARD COPY

After submitting the online application, send a hard copy along with supporting documents to the Ministry of Home Affairs within 15 days.

  1.  SCRUTINY AND VERIFICATION

The Ministry of Home Affairs reviews the application thoroughly:

  • Verifies authenticity of submitted documents and financial statements.
  • May conduct field visits to assess activities and infrastructure.
  • Background checks are performed to ensure compliance with national interest and security requirements.
  1.  APPROVAL OR REJECTION

Based on scrutiny and verification, the Ministry decides whether to grant FCRA registration. If approved, registration is valid for 5 years. In case of rejection, reasons are provided to the applicant.

  1. TIMELINE

The approval process can take anywhere from 6 months to 2 years, depending on factors like completeness of application and additional scrutiny requirements.

  1. GOVERNMENT FEES
  • Normal Registration:                     ₹10,000.
  • Prior Permission Registration:      ₹5,000.

These fees must be paid online through the official payment gateway during the application process.

MANDATORY COMPLIANCE REQUIREMENTS FOR FCRA

FCRA QUARTERLY RETURN FILING PROCESS

  1. Access the FCRA Online Portal

Visit the FCRA online portal at www.fcraonline.nic.in and log in with your user ID and password. If you don't have these credentials, contact the support team via email at [email protected].

  1. Navigate to the Quarterly Returns Section

Once logged in, navigate to the section for filing quarterly returns.

  1. Fill in the Quarterly Return Form

Select the Quarter: Choose the appropriate quarter for which you are filing the return (e.g., April to June, July to September, October to December, January to March).

Enter Contribution Details: Provide details of foreign contributions received during the selected quarter, including the source and amount.

Utilization of Funds: Report on how the foreign contributions were utilized during the quarter.

Bank Account Details: Enter the details of the designated FCRA bank account where the foreign contributions were received.

  1. Upload Supporting Documents

Attach all necessary supporting documents, such as receipts and utilization certificates, to the return form.

    5. Review and Submit

Carefully review the form for accuracy and completeness before submitting it         online.

  1. Record Keeping

Maintain a record of the submitted return and supporting documents for future reference.

DUE DATES FOR FCRA QUARTERLY RETURNS

The quarterly returns must be filed within 15 days after the end of each quarter:

  • April to June: Due by July 15th.
  • July to September: Due by October 15th.
  • October to December: Due by January 15th.
  • January to March: Due by April 15th.

PENALTIES FOR NON-COMPLIANCE

Failure to file quarterly returns on time can result in penalties, including fines or even cancellation of the FCRA registration.