Quick answerUnder the Foreign Contribution (Regulation) Act, 2010, as amended in 2020, an Indian trust, society or Section 8 company must obtain registration or prior permission from the Ministry of Home Affairs before accepting foreign contribution. Registration requires at least three years of existence and a minimum spending on the organisation's aims in the preceding three years, prescribed in the rules as ₹15 lakh. Foreign contribution must be received only in the FCRA account at SBI, New Delhi Main Branch. Registration is valid for five years.
- Law
- FCRA 2010, amended 2020
- Authority
- Ministry of Home Affairs
- Validity
- 5 years, renewable
- Annual return
- Form FC-4
Who can apply, and who cannot
FCRA registration is available to organisations with a definite cultural, economic, educational, religious or social programme, registered in India as a public charitable trust, a society or a Section 8 company. The 2020 amendment made Aadhaar compulsory for office bearers and key functionaries, and the Ministry examines whether any of them is linked to activities that the Act prohibits.
Section 3 of the Act prohibits certain persons from accepting foreign contribution at all, including candidates for election, journalists and media companies, judges, government servants, members of legislatures, political parties and their office bearers, and organisations of a political nature. Section 9 restricts others. If an organisation's board includes such persons, the application will face difficulty.
Registration or prior permission
| Point | Registration | Prior permission |
|---|
| Suitable for | Established organisations with a track record | Newer organisations, or a single defined grant |
| Existence | At least 3 years | No minimum period |
| Track record | Minimum spending of ₹15 lakh on core activities in the last 3 financial years, excluding administrative expenses | A specific commitment letter from the foreign donor |
| What it allows | Foreign contribution from any lawful source for the registered purposes | Only the specific amount, from the specific donor, for the specific purpose |
| Application form | FC-3A | FC-3B |
| Validity | 5 years | Until the amount is received and used |
The spending test is applied on the audited accounts, so organisations should present three years of clean financial statements showing programme expenditure separately. The rules have been amended several times, so we check the current conditions on the date of filing.
How the application is processed
- Eligibility review: we check the constitution, the objects, the board, the last three years' accounts and the programme expenditure.
- FCRA account: the organisation opens the designated FCRA account at State Bank of India, New Delhi Main Branch. This can be done through any SBI branch, but the account itself sits at the New Delhi Main Branch.
- Online application: Form FC-3A (registration) or FC-3B (prior permission) is filed on the FCRA portal with the documents, the key functionaries' details and the prescribed fee.
- Verification: the Ministry obtains a field report through the security agencies, which may visit the office and project sites and meet the office bearers.
- Decision: the Ministry grants registration or permission, or rejects it with reasons.
The law contemplates a decision within ninety days, but in practice applications often take longer because of the verification. Queries from the Ministry must be answered completely and on time.
Rules for receiving and using foreign contribution
FCRA compliance continues for as long as the organisation holds the registration. The key rules after the 2020 amendment are:
- All foreign contribution must be received only in the FCRA account at SBI, New Delhi Main Branch. It can then be moved to one or more utilisation accounts in any bank.
- Foreign contribution cannot be mixed with domestic funds in any account.
- Administrative expenses met from foreign contribution cannot exceed 20% of the foreign contribution received in the financial year.
- Foreign contribution cannot be transferred to any other person or organisation, even one registered under FCRA.
- It must be used only for the purposes for which it was received, and assets created from it must be recorded.
- Receipts must be disclosed on the organisation's website or the FCRA portal quarterly, and the annual return in Form FC-4 filed with audited accounts within nine months of the end of the financial year, generally by 31 December.
Changes in key functionaries, name, address, objects or bank account must be intimated to the Ministry within the prescribed time.
What counts as foreign contribution
Foreign contribution means any donation or transfer of money, articles or securities from a foreign source. Foreign sources include foreign governments, foreign companies and trusts, international agencies, and foreign citizens. Some practical points:
- A donation by an Indian citizen living abroad (an NRI) from personal savings through normal banking channels is not foreign contribution, because an Indian citizen is not a foreign source.
- A donation by a foreign citizen, including a person of Indian origin holding an OCI card, is foreign contribution.
- Interest and other income earned on foreign contribution is also treated as foreign contribution and must stay in the FCRA accounts.
- Payments for goods or services supplied in the ordinary course of business are not donations, but grants dressed up as fees will be examined.
FCRA registration is separate from income tax registrations. An NGO also needs registration under the income tax law for exemption of its income, and approval for donors' deductions if it wants to offer them; the Ministry looks at these records too.
Renewal, suspension and cancellation
Registration is valid for five years. The renewal application in Form FC-3C should be filed well before expiry, generally at least six months ahead, because an organisation whose registration lapses cannot receive or use foreign contribution until renewal. The Ministry can refuse renewal where conditions are not met.
The Ministry can suspend registration pending inquiry, for up to 180 days and extendable, and can cancel it for contraventions such as using funds for other purposes, failing to file returns or not carrying on activities for two years. After cancellation, the organisation cannot apply again for three years, and the unused foreign contribution vests with the authority the government specifies. Contraventions can also attract penalties and prosecution under the Act.
Common reasons applications fail
- Not meeting the spending test, often because administrative costs were counted as programme expenditure.
- Objects that are vague, overly broad or include activities with a political character.
- Office bearers who are related to each other in ways the Ministry views as concentration of control, or who have adverse reports.
- Inconsistencies between the trust deed or bye-laws, the accounts and the application.
- Incomplete income tax compliance, such as missing returns or registrations.
We review these points before filing. Where registration is not yet possible, prior permission for a specific grant is often the better route.
Documents you need
For an FCRA application we usually need:
- Registration certificate and trust deed, society bye-laws or MOA and AOA of the Section 8 company
- Audited financial statements and income tax returns for the last three years
- Activity reports for the last three years with photographs
- PAN of the organisation and Aadhaar and PAN of key functionaries
- Details of the FCRA account opened at SBI, New Delhi Main Branch
- Board resolution authorising the application
- For prior permission: commitment letter from the foreign donor with amount and purpose
- Digital signature of the chief functionary
How we handle it for you
Eligibility review
We check your constitution, board, objects and three years of accounts against the FCRA conditions.
Choose the route
We advise whether to apply for registration or prior permission.
Prepare and file
We draft the application, assist with the SBI account and file FC-3A or FC-3B.
Handle verification
We prepare the office bearers for the field inquiry and reply to Ministry queries.
Ongoing compliance
We file FC-4, quarterly disclosures, intimations and the renewal on time.
Why clients choose ProudLegal
Advocates who appear in courtYour matter is drafted and argued by enrolled advocates, not call-centre staff.
Company and tax filings in-houseCompany secretaries and tax professionals handle registrations and returns.
Fees agreed in writingYou receive a written fee quote before any work begins.
Updates on WhatsApp and emailEvery hearing date, filing and document is shared as it happens.
Please note: this page explains the law and procedure in general terms as on 30 October 2026. Fees, limits and timelines change, and the facts of each case matter, so take advice on your own papers before acting.
Frequently asked questions
Who can apply for FCRA registration?
A trust, society or Section 8 company with a definite cultural, economic, educational, religious or social programme, which has existed for at least three years and meets the minimum spending condition.
Can a new NGO receive foreign donations?
Not through registration. A new organisation can apply for prior permission to receive a specific amount from a specific donor for a specific purpose.
Where must foreign contribution be received?
Only in the designated FCRA account at State Bank of India, New Delhi Main Branch.
What is the limit on administrative expenses?
Administrative expenses met from foreign contribution cannot exceed 20% of the foreign contribution received in the year.
How long is FCRA registration valid?
Five years. Renewal should be filed in Form FC-3C well before expiry.
When is the FCRA annual return due?
Form FC-4, with audited accounts, is due within nine months of the end of the financial year, generally by 31 December.
Can an FCRA-registered NGO pass foreign funds to another NGO?
No. Since the 2020 amendment, transfer of foreign contribution to any other person or organisation is prohibited.
How long does FCRA registration take?
The law contemplates about ninety days, but security verification often takes longer. A complete application helps.
