Overview
An Indian association, trust, society or Section 8 company can receive foreign contributions only after obtaining registration or prior permission from the Ministry of Home Affairs under the FCRA, 2010. Registration (Form FC-3A) generally requires the organisation to have existed for at least three years and to have spent a minimum amount on its objects in that period. All foreign contributions must first be received in the designated FCRA account at the State Bank of India, New Delhi Main Branch. An annual return is filed in Form FC-4.
Registration vs Prior Permission
- Registration (FC-3A): For organisations with a track record of at least three years and minimum expenditure on their core activities of ₹15 lakh over the preceding three years. Valid for five years.
- Prior permission (FC-3B): For newer organisations, to receive a specific amount from a specific donor for a specific purpose.
- Renewal (FC-3C): Filed within the prescribed window before registration expires.
Key Compliance Obligations
- Receive foreign contribution only in the FCRA account at SBI, New Delhi Main Branch. Utilisation accounts may be opened at other banks.
- Administrative expenses must not exceed 20% of the foreign contribution received.
- Foreign contribution cannot be transferred to other persons or organisations (following the 2020 amendment).
- Aadhaar or passport and OCI identification of office bearers is required.
- The annual return, FC-4, is due by 31 December for the preceding financial year.
- Receipts and utilisation must be disclosed on the organisation’s website and the FCRA portal, as prescribed.
- Changes in key functionaries, address or bank must be intimated within the prescribed time.
Who Needs This Service?
Trusts, societies and Section 8 companies that seek grants or donations from foreign sources, including from Indian subsidiaries of foreign companies where those subsidiaries count as foreign sources.
FCRA in Chennai / Tamil Nadu
FCRA is administered centrally by MHA. Organisations in Tamil Nadu follow the same procedure and must hold their primary FCRA account at SBI New Delhi Main Branch, although utilisation accounts may be held with local banks.
FCRA Registration and Prior Permission Compared
The two routes suit different situations.
| Aspect | Registration | Prior permission |
|---|---|---|
| When used | Regular receipt of foreign contribution | A specific contribution from a specific source |
| Validity | Five years, renewable | For that contribution |
| Account | Designated FCRA account | Designated account for the contribution |
Documents Required
The registration certificate and constitution documents, audited accounts for the past three years, activity reports, office bearer details, the bank certificate, and the commitment letter from the donor (for prior permission).
Process
Prepare the application documents, open the FCRA account at SBI NDMB, file FC-3A or FC-3B online with the fee, and respond to MHA queries. MHA may carry out field inquiries. The decision rests with MHA.
How KVA Handles FCRA Advisory & Compliance
Karthick Vijayakumar & Associates, Company Secretaries, supports you through each stage with a single point of contact and a clear record of what has been done.
| Step | Stage | What KVA does |
|---|---|---|
| 1 | Requirement review | We understand your entity, objective and timeline, and confirm what FCRA Advisory & Compliance involves for your specific facts. |
| 2 | Document checklist | You receive a clear list of documents, particulars and approvals needed, with gaps flagged early. |
| 3 | Preparation and filing | Our team prepares, reviews and files the required forms and records, and tracks each acknowledgement. |
| 4 | Completion and follow-up | We hand over final records and explain the compliance that follows, so nothing is missed afterwards. |
Fees and Timeline
MHA prescribes application fees for each form. Professional fees are available on enquiry. MHA processing time varies and is not assured.
FCRA Compliance Calendar
Timelines are fixed and should be tracked.
| Item | Timing |
|---|---|
| Disclosure of quarterly receipts | Within the period after each quarter |
| Annual return | By 31 December for the preceding year |
| Renewal of registration | Apply well before expiry |
Why Karthick Vijayakumar & Associates
Work is handled by company secretaries who deal with statutory filings and governance every day.
Timelines for FCRA Advisory & Compliance are tracked so that approvals and filings do not slip.
Plain-language updates at each stage, with no guesswork about what is pending.
Organised, decision-ready documentation that supports audits, banks and future filings.
Frequently Asked Questions
No. It needs either registration or prior permission from MHA.
The FCRA account at the State Bank of India, New Delhi Main Branch.
Five years, and it must be renewed before it expires.
Form FC-4 is due by 31 December for the preceding financial year.
No. Since the 2020 amendment, transfer of foreign contribution to other persons is prohibited.
Twenty percent of the foreign contribution received in a financial year.
It can, depending on the extent of foreign shareholding in the company. Check whether the donor is a “foreign source” under the Act.
Usually not. New organisations can apply for prior permission for a specific donation.
Yes. Section 8 companies are eligible, provided they meet the conditions.
MHA can suspend or cancel the registration, freeze assets, and initiate prosecution in serious cases.
Yes. Registered organisations must file FC-4 even when they received nothing in the year.
Individuals can receive gifts from relatives abroad without intimation up to the threshold notified by MHA. Other cases are regulated.
The Foreign Contribution (Regulation) Act, 2010 and the FCRA Rules, 2011 administered by the Ministry of Home Affairs.
An organisation with a definite cultural, economic, educational, religious or social programme may apply for registration, while one-time contributions for a specific purpose may be received through prior permission.
An account designated at the State Bank of India, New Delhi Main Branch, into which all foreign contribution must be received, with a separate utilisation account allowed for spending.
Certain persons, such as candidates for election, journalists, judges, government servants and political parties, as the Act lists.
Sub-granting is restricted by the amended Act, and funds generally cannot be transferred to another organisation except as allowed by the rules.
Yes. Changes in name, address, key members or the designated bank account must be intimated to the Ministry within the stated period.
Registration is valid for five years, and renewal must be applied for in advance of expiry, with the required compliance record.
Separate accounts for foreign contribution, receipts and utilisation registers, and audited statements of accounts for each financial year.
Planning to Receive Foreign Contributions?
Contact Karthick Vijayakumar & Associates to review FCRA eligibility and the compliance obligations that follow.
Contact UsSpeak with Karthick Vijayakumar & Associates
Third Floor, New No. 599, Old No. 230, Konnur High Road, Ayanavaram, Chennai, Tamil Nadu, 600023, India
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