FCRA Registration: Eligibility, Process and Prior Permission

Indian NGOs need approval from the Ministry of Home Affairs before accepting money from foreign sources. There are two routes: FCRA registration and prior permission. This guide explains both. Eligibility criteria are set by rules and revised periodically, so check the current requirements.

What Counts as Foreign Contribution

Donations of money, articles or securities from a foreign source — foreign governments, foreign companies, foreign trusts and foreign citizens, and in some cases Indian companies with foreign majority ownership. Contributions from Indian-origin individuals holding foreign citizenship count too.

FCRA Registration

Registration allows an organisation to receive foreign contributions from any source for its registered purposes. It's for established organisations, which generally must:

• Have existed for a minimum number of years (three, under recent rules).
• Have spent a minimum amount on their core activities in recent years.
• Have key functionaries who meet the Act's conditions.

Registration is valid for five years and must be renewed.

Prior Permission

Newer organisations can apply for prior permission to receive a specific amount from a specific donor for a specific purpose. A commitment letter from the donor is required.

The Application

1. Open the FCRA account at SBI's New Delhi Main Branch.
2. Prepare accounts, activity reports and key functionaries' details.
3. File the application on the FCRA portal with the fee.
4. Respond to queries; field verification may take place.

Who Can't Apply

Certain persons — such as political parties, election candidates, journalists and media organisations in specified cases, and government servants — can't accept foreign contributions.

Getting Help

Think Filing prepares FCRA registration and prior permission applications.