FCRA Registration & Renewal: Crucial Compliance for NGOs

Legal Expertise by AK Legal Mantra
AK Legal Mantra helps NGOs to get and renew their FCRA (Foreign Contribution Regulation Act) registration so that they can receive foreign donations legally. If you’re filing for the first time or renewing a license, we make sure that we are fully legally compliant so that your license is not cancelled, penalties imposed on you, or funding halted.

What is FCRA Registration?

FCRA Registration is needed by NGOs, trusts, societies, and Section 8 companies in India who wish to receive foreign contributions legally. Regulated under the Foreign Contribution Regulation Act, 2010, this registration provides transparency and accountability for the use of foreign contributions towards charitable activities.

Types of FCRA Approval

1. FCRA Registration (Permanent)
Issued to NGOs that have been in operation for a period of at least 3 years and have been engaging in large-scale charitable work. This is a long-term permission for accepting foreign contributions.

2. FCRA Prior Permission
Issued to fresh NGOs or NGOs with less than a 3-year history. Permission is issued for a given donor, amount, and purpose.

Requirements for FCRA Registration

  • The NGO should be registered as a Trust, Society, or Section 8 Company
  • Active operation and proven track record of charitable work for a period of at least 3 years (for full registration)
  • Maintenance of books of accounts and audited financial statements
  • PAN and DARPAN ID registration
  • Opening of an FCRA designated bank account in a State Bank of India, New Delhi branch (as per recent regulations)

FCRA Renewal Process

FCRA registration is for 5 years and should be renewed at least 6 months prior to expiry. Non-renewal automatically cancels the registration and prohibits receiving foreign contributions.

Why FCRA Compliance is Important

  • Legal Authorization: FCRA is required to receive foreign donations, which is a criminal offense under Indian law in the absence of FCRA.
  • Donor Confidence: Registered NGOs earn greater trust and funding from international donors.
  • Government Compliance: FCRA requires proper recordkeeping, usage tracing, and periodic reporting to prevent fines.

How AK Legal Mantra Can Assist

Our legal team offers full FCRA-associated services, which include:

  • Filing for new FCRA registration or advance permission
  • FCRA revalidation and renewal
  • Preparation and checking donor agreements
  • Opening the FCRA SBI account guidance
  • Annual compliance and FC-4 return filings

With AK Legal Mantra, you have continuous foreign funding, full compliance, and peace of mind.

FAQs

1. Who requires FCRA registration?
Any Trust, Society, Section 8 Company, or NGO that plans to accept foreign contributions is required to have valid FCRA registration.

2. What is the distinction between registration and prior permission?
Registration is permanent sanction for eligible NGOs, whereas prior permission is once-once, project-wise sanction for small or new organizations.

3. For how long is FCRA registration valid?
FCRA registration is valid for 5 years and should be renewed prior to expiry.

4. Can foreign funds be deposited in any bank account?
No. All foreign contributions should be accepted only in the specified FCRA bank account opened with SBI, New Delhi, under government notification.

5. Does AK Legal Mantra deal with annual FCRA returns?
Yes, we facilitate FC-4 filings, disclosures by donors, and ensuring perfect FCRA compliance throughout the year.