How to apply for FCRA License

How to apply for FCRA License

An Indian non-profit — registered as a trust, society, or Section 8 company — that wants to receive foreign donations must obtain either FCRA registration (Form FC-3A) or prior permission (Form FC-3B) from the Ministry of Home Affairs under the Foreign Contribution (Regulation) Act, 2010. In FY 2026-27, both routes run entirely through the FCRA Online Portal at fcraonline.nic.in. Registration requires a minimum three-year operating history and ₹15 lakh of documented activity spend; prior permission is available for newer organisations or one-off projects with a specific donor in hand.

Who Must Apply — and What Happens If You Don't

Any Indian person or organisation that receives, or intends to receive, "foreign contribution" — defined broadly under Section 2(1)(h) of the FCRA 2010 to include money, securities, articles, and even hospitality above a threshold — from a foreign source must hold either FCRA registration or prior permission before accepting a single rupee.

The obligation applies to trusts registered under state trust acts, societies registered under the Societies Registration Act, 1860, and companies incorporated under Section 8 of the Companies Act, 2013. Individual activists, journalists, judges, government servants, legislators, and candidates for election are permanently barred from receiving foreign contribution regardless of purpose.

If you accept foreign funds without valid FCRA coverage:

• The account holding foreign funds can be frozen under Section 13
• Registration, once obtained, can be cancelled under Section 14 — with no refund of fee
• Office bearers face prosecution under Section 35: imprisonment up to five years, fine, or both
• Foreign contribution already received is liable to confiscation

The practical consequence is existential: a freezing order immediately stops programme delivery and shuts donor reporting channels. MHA's enforcement has visibly intensified since FY 2022-23, and several prominent NGOs lost registration in FY 2025-26 on compliance grounds. Do not treat FCRA as a formality.

Two Routes to FCRA Coverage: FC-3A Registration vs FC-3B Prior Permission

Route 1 — FCRA Registration (Form FC-3A)

FCRA registration is the standard, multi-year route for established organisations. Once granted, it is valid for five years and covers all foreign contributions received during that period from any eligible foreign source, with no ceiling on amount or number of donors.

Eligibility threshold:

• The organisation must have been in active existence for at least three years from the date of its legal creation
• It must have spent a minimum of ₹15 lakh on its stated core activities during the three immediately preceding financial years
• No office bearer or key functionary may fall into any disqualification category (detailed below)

Route 2 — Prior Permission (Form FC-3B)

Prior permission is project-specific. MHA approves a named foreign donor to remit a named amount for a named purpose. Once the project ends or the approved amount is utilised, the permission lapses.

Prior permission suits:

• Organisations younger than three years
• Organisations that cannot yet evidence ₹15 lakh of qualifying programme spend
• Established, registered organisations receiving a one-off grant from an unusual or restricted donor

The catch: Prior permission does not create a recurring licence. Each new grant from a new donor, or a fresh tranche for a new purpose, requires a fresh FC-3B application. This makes prior permission administratively burdensome for any organisation doing active fundraising.

Decision rule: If your organisation is three years old and can prove ₹15 lakh of spend, always apply for FC-3A registration. Prior permission is a legal fallback, not a strategic preference.

Eligibility: What MHA Actually Checks in 2026-27

MHA's due diligence under Section 12 of the FCRA has grown substantially more rigorous since the FCRA (Amendment) Act 2020 introduced new digital verification tools. Run this five-point self-assessment before opening the portal.

1. Organisational legitimacy. The organisation must be registered, active, and demonstrably not a benami entity. MHA cross-verifies registration records with state registrars, the MCA V3 portal (for Section 8 companies), and Income Tax return data going back at least three years.

2. Activity authenticity. The stated cultural, economic, educational, religious, or social purpose in your memorandum of association or trust deed must match actual, documented programme spend. Vague MoA objects — "charitable work" without specificity — invite rejection. Ensure your deed is specific about the communities you serve and the methods you use.

3. Office bearer clean record. Every office bearer and key functionary must be free of FCRA prosecution, communal harmony violations, conversion-related criminal proceedings, and — since the 2020 amendment — must not be a serving government employee. One disqualified person anywhere in the governing body blocks the entire application.

4. No prior diversion. The organisation must not have been found, in any prior FCRA proceeding or Income Tax assessment, to have diverted foreign funds to non-permitted purposes or persons. This includes cases where a prior FCRA application was rejected for cause.

5. Intelligence Bureau clearance. MHA routes all applications through an IB check. Organisations associated with individuals or entities flagged on national security databases face rejection or indefinite deferral, with no formal reason given in the rejection letter. There is no formal appeal for IB-based rejections; this is an inherent feature of the process.

AIS/TIS triangulation (new in 2026-27 practice): MHA now cross-references an applicant's Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) from the Income Tax portal against the audited accounts submitted with the application. Discrepancies between IT filings and stated expenditure — even for years before the application — trigger scrutiny letters and frequently cause rejection.

Documents You Must Gather Before Opening the Portal

Prepare every document before starting the online application. The FCRA portal does not save partial uploads reliably across sessions, and a missing document at submission stage means restarting the process.

Organisational documents:

• [ ] Registration certificate — trust deed, society registration certificate, or Certificate of Incorporation
• [ ] PAN card of the organisation
• [ ] Memorandum of association, trust deed, or articles of association (as applicable)
• [ ] Audited financial statements for the last three financial years — FY 2023-24, FY 2024-25, and FY 2025-26 for a FY 2026-27 application
• [ ] Activity reports for the same three years, with beneficiary data, photographs, and expenditure summaries
• [ ] NITI Aayog DARPAN Unique ID — mandatory prerequisite, obtained by registering at ngodarpan.gov.in; allow 3–7 working days

Office bearer documents (for every key functionary listed in the application):

• [ ] PAN of each office bearer and key functionary
• [ ] Aadhaar of each Indian-resident office bearer (or passport for foreign-resident members)
• [ ] Affidavit by the chief functionary in the prescribed format confirming eligibility and absence of disqualification

Banking document:

• [ ] Account number and IFSC details of the designated FCRA account at SBI New Delhi Main Branch (IFSC: SBIN0000691) — open this account before completing the application, not after

Digital requirement:

• [ ] Digital Signature Certificate (DSC) of the chief functionary — Class 2 or Class 3 — mandatory to submit the FC-3A online

Step-by-Step: Filing FC-3A on the FCRA Online Portal

Follow this sequence exactly. Steps taken out of order add weeks to your timeline.

1. Obtain your DARPAN ID first. Go to ngodarpan.gov.in, register the organisation, and receive the Unique ID. The FC-3A form will not accept submission without a valid DARPAN number. Do not skip ahead.

1. Open the SBI designated account. Visit the SBI New Delhi Main Branch (Parliament Street, New Delhi — IFSC: SBIN0000691) with the organisation's KYC documents, PAN, and governing deed. The bank will designate the account as the "FCRA Account" in the account title itself. Note the full account number before proceeding; it is a mandatory field in FC-3A.

1. Obtain the chief functionary's DSC. If the chief functionary does not already hold a DSC, apply through any MCA-empanelled certifying authority. A two-year Class 3 DSC typically costs ₹1,500–₹2,500 and takes 2–3 working days to issue.

1. Create a login on fcraonline.nic.in. Use the organisation's PAN and a monitored email address. Preserve these credentials carefully — the same login is used for all future filings, including FC-4 annual returns and the eventual FC-3C renewal.

1. Select Form FC-3A and complete all sections. The form covers six areas: organisation details, office bearer details, activity details, bank account details, foreign donor details (if a specific donor is identified), and declarations. Every mandatory field must be completed; MHA does not accept blank fields accompanied by explanations in covering emails.

1. Upload supporting documents. Each file must be in PDF format within the portal's size limit (typically 1–2 MB per file). Compress scanned PDFs if needed. Name files descriptively before uploading — for example, Audited_Accounts_FY2025-26.pdf — since MHA reviewers see the filenames.

1. Pay the prescribed fee online. The application fee is ₹10,000 for registration (FC-3A) and ₹5,000 for prior permission (FC-3B) (subject to revision; verify on the portal before payment). Fees are non-refundable regardless of outcome. Download and preserve the payment receipt.

1. Sign with DSC and submit. The chief functionary's DSC must be applied to the completed form before final submission. After signing, the application locks and a system-generated acknowledgement number is issued. Record this number immediately.

1. Monitor and respond to MHA communications. MHA may issue a written query or dispatch a field verification team. Respond within the time stipulated in the communication — typically 30–60 days. Non-response is treated as withdrawal of the application.

1. Intimate the SBI account on approval. On receiving the registration certificate, log back into the portal and file the required intimation confirming the SBI account is operational. Skipping this step creates a compliance gap that complicates the first FC-4 filing.

Expected processing time: MHA does not publish a statutory processing deadline for FC-3A. In clean-documentation cases, resolution takes 90–150 days. Applications involving IB queries or field verification commonly run to 6–12 months. Plan your fundraising calendar accordingly.

The SBI New Delhi Designated Account: What You Must Get Right

The FCRA (Amendment) Act 2020 introduced one of the most operationally disruptive rules in the Act's history: under the amended Section 17, all foreign contributions must be received exclusively in a designated account at the State Bank of India, New Delhi Main Branch (Parliament Street; IFSC: SBIN0000691).

This is not a preference. Any foreign contribution credited to any other bank or branch — even with valid FCRA registration — is a violation.

What the designated account is for:

• Receiving all inward foreign remittances
• Transferring funds to one or more "utilisation accounts" at any scheduled bank branch of your choice (each utilisation account must be intimated to MHA)

What the designated account must never be used for:

• Domestic fundraising receipts
• Programme expenses, staff payroll, or vendor payments (these go through utilisation accounts)
• Commingling domestic and foreign funds

Sub-granting prohibition — critical change since 2020: The amended Section 7 of the FCRA prohibits an FCRA-registered organisation from transferring foreign contribution to any other person or organisation. The Supreme Court upheld the constitutionality of this provision in Noel Harper v. Union of India (2022). If your programme model relied on sub-grants to implementing field partners, those partners must either obtain their own FCRA coverage or your organisation must execute the work directly. Restructure your delivery model before applying if this affects you.

Ongoing Compliance After Your FCRA Is Granted

Registration is the beginning of a continuous compliance obligation, not the end. Treat these as recurring calendar items.

Annual Return: Form FC-4

File Form FC-4 on the FCRA Online Portal within nine months of the end of each financial year — that is, by 31 December for any year ending 31 March.

• For FY 2025-26, FC-4 is due by 31 December 2026
• For FY 2026-27, FC-4 is due by 31 December 2027

FC-4 requires: total foreign contribution received (broken down by donor), purpose-wise expenditure, closing balances in all designated and utilisation accounts, and details of every bank account used. The return must be certified by a Chartered Accountant.

Failure to file FC-4 on time is a ground for suspension of registration under Section 13 and, for repeat non-compliance, cancellation under Section 14.

Quarterly Website Disclosure

Publish statements of receipts and expenditure of foreign contribution on your organisation's website within 15 days after each quarter end. If your organisation does not yet have a functional public website, create and host one before applying — MHA verifies web presence during registration and renewal.

Administrative Expense Cap: 20% of Annual Receipts

Under amended Section 8, not more than 20% of foreign contribution received in a financial year may be applied to administrative expenses. This includes: staff salaries attributable to administration, office rent, utilities, non-programme travel, and overheads.

If your annual foreign contribution is ₹40 lakh, your maximum permissible administrative spend is ₹8 lakh. If actual admin costs run at ₹10 lakh, you are in violation by ₹2 lakh — a fact that will be visible in your FC-4 and will almost certainly trigger a cancellation notice on renewal.

Budget the 20% cap into every grant negotiation, not as an afterthought.

Utilisation Account Intimation

Every new bank account opened for utilisation of foreign funds must be intimated to MHA within the prescribed period. Maintain a log of all accounts opened, dates of intimation, and acknowledgements received.

Renewal: Form FC-3C and the Six-Month Window

FCRA registration is valid for five years. Renewal must be filed through Form FC-3C at least six months before the expiry date. If your registration was granted on 1 October 2022, you must file FC-3C by 1 April 2027 at the latest — not on 1 April 2027.

Filing after the six-month window does not automatically invalidate registration, but it places your organisation in a regulatory grey zone where MHA may or may not extend validity while renewal is pending. Donors who conduct periodic FCRA status checks become cautious, and some will withhold remittances until renewal is confirmed.

MHA evaluates renewal on the same criteria as original registration, plus:

• FC-4 filing record for every year in the validity period — a single missing FC-4 return is near-certain grounds for renewal rejection
• Spend profile matching stated purposes across five years
• AIS/TIS triangulation for all five years
• Any complaints received, adverse intelligence inputs, or pending proceedings

The renewal application fee is ₹5,000 (as notified). Start your internal compliance review at least twelve months before expiry to identify and resolve gaps — missing annual returns, undocumented expenses, lapsed website disclosures — before submitting the renewal application. Presenting a clean five-year record is significantly easier than explaining away gaps under renewal scrutiny.

Worked Example: A Healthcare NGO Applies for FCRA Registration

Background: Arogya Seva Trust is a Maharashtra-registered charitable trust working on rural primary healthcare. Registered in April 2022, it wants to apply for FCRA registration in July 2026 to receive a grant of ₹30 lakh from a UK-based public health foundation.

Eligibility check:

Cost estimate:

Projected timeline:

• July 2026: FC-3A filed on the portal
• August 2026: MHA issues a query on beneficiary data for FY 2024-25 — trust responds within 30 days with field reports
• October 2026: Field verification conducted at office and programme site
• January 2027: Registration certificate issued; SBI account already operational
• February 2027: UK foundation remits ₹30 lakh to SBI designated account ✓

Administrative expense check on the ₹30 lakh grant:

• 20% cap = ₹6 lakh maximum for administrative spend
• Trust's budgeted overheads = ₹7.5 lakh → violation of ₹1.5 lakh
• Correction: Renegotiate budget with UK foundation to reduce admin allocation to ₹5.5 lakh, or restructure staff roles so programme-facing staff costs are classified correctly under direct programme spend

What would have gone wrong without prior planning: If the UK foundation had transferred ₹30 lakh into the trust's local Pune HDFC account before FCRA registration was granted, the trust would face prosecution under Section 35 and confiscation of the full ₹30 lakh. The UK foundation's trustees would also face reputational and regulatory exposure under UK charity law for funding an unauthorised recipient.

Common Mistakes That Kill FCRA Applications

1. Filing FC-3A before the DARPAN ID is in hand. The portal will reject submission without a valid DARPAN Unique ID. Organisations regularly discover this after spending hours on the application. Get DARPAN first, always.

2. Weak or generic activity reports. Descriptions like "conducted awareness programmes in rural areas" without beneficiary head-counts, GPS-tagged photographs, specific villages covered, or expenditure line items are routinely questioned. Each year's activity report should read like a programme evaluation, not a summary paragraph.

3. Audited accounts that do not match the activity report. If the activity report claims ₹6 lakh spent on medical camps but the audited accounts show ₹6 lakh under "miscellaneous expenses," MHA will issue a reconciliation query. Instruct your auditor to code expenditure to reflect programme names used in the activity report — the match must be self-evident.

4. Opening the SBI account after the application is filed. The FC-3A form requires the SBI New Delhi Main Branch account number at the point of submission. Attempting to file with a placeholder note creates a defective application. Open the account first.

5. The wrong signatory on the DSC. Only the chief functionary of the organisation — as named in the governing document — may sign the FC-3A. If a co-founder, programme director, or CFO who is not the formal chief functionary uses their own DSC to submit, the application is technically defective and may be invalidated.

6. Ignoring the 20% admin cap in advance. NGOs that negotiate large grants without modelling the 20% cap find themselves in violation from the first financial year of receipt. The cap applies to total annual foreign contribution received across all grants — not per grant. A multi-grant year where combined admin costs exceed 20% of total foreign receipts is a violation even if each individual grant is within budget.

7. Letting the FCRA registration lapse before filing renewal. Some organisations discover on the expiry date that their registration has lapsed because the six-month advance renewal window was missed. Operating after expiry — even for a day — constitutes receiving foreign contribution without valid FCRA coverage. Set a calendar reminder at the 12-month and 6-month marks before expiry.

Key Takeaways

• FCRA registration (FC-3A) is for organisations with 3+ years of existence and ₹15 lakh of documented programme spend; prior permission (FC-3B) is the route for newer organisations or one-off grants from a named donor.
• The SBI New Delhi Main Branch (IFSC: SBIN0000691) designated account is mandatory, non-negotiable, and must be open before you submit the application — no other bank or branch is legally acceptable for receiving foreign contribution.
• Sub-granting foreign funds to implementing partners is prohibited under the amended Section 7; restructure your delivery model before applying if your programmes depend on field NGO partners.
• The 20% administrative expense cap is calculated on total annual foreign receipts across all grants, not per project — budget this into every donor negotiation before signing the grant agreement.
• File Form FC-4 annually by 31 December; a single missing return is near-certain grounds for renewal rejection when you file FC-3C.
• Apply for renewal through Form FC-3C at least six months before your five-year registration expires — and begin a compliance audit at least twelve months before expiry.
• AIS/TIS triangulation means MHA can now cross-check your Income Tax data against FCRA disclosures; reconcile your IT filings and audited accounts meticulously from your first year of registration, not just at renewal time.