Detailed Procedure for FCRA Registration and

Renewal (Form FC-3A & FC-3C)

Introduction

Non-governmental organizations (NGOs) in India serve as critical pillars of social welfare, education, healthcare, and environmental conservation, driving impactful change across communities. However, to operate legally, access funding, and maintain tax exemptions, NGOs must navigate a complex web of regulatory requirements under the Foreign Contribution Regulation Act (FCRA), 2010, and the Income Tax Act, 1961. These regulations ensure transparency, accountability, and proper utilization of funds, particularly foreign contributions and donations eligible for tax deductions. This comprehensive guide provides an exhaustive exploration of five critical compliance areas: FCRA registration and renewal (Form FC-3A and FC-3C), filing annual returns under FCRA (Form FC-4), reporting donations for 80G compliance (Form 10BD), maintaining books of accounts as per Income Tax and FCRA norms, and filing income tax returns using Form ITR-7. Each section is enriched with detailed procedures, legal references, practical examples, tables, pros and cons, and recent updates as of June 4, 2025, to equip NGOs with the knowledge needed for seamless compliance

2.1 Legal Framework

The Foreign Contribution Regulation Act, 2010, is a cornerstone legislation designed to regulate the inflow and utilization of foreign contributions to ensure they align with India’s national interests. Under Section 11 of the FCRA, 2010, any organization intending to receive foreign contributions must either register with the Ministry of Home Affairs (MHA) or obtain prior permission. The Foreign Contribution Regulation Rules (FCRR), 2011, further detail the procedural aspects, with Rule 5 governing the application process for registration via Form FC-3A and Rule 6 addressing renewal through Form FC-3C. These provisions ensure that only organizations with a proven track record and genuine objectives can access foreign funding, safeguarding against misuse

2.2 Eligibility for FCRA Registration

To qualify for FCRA registration, an organization must meet stringent criteria to demonstrate its legitimacy and operational history. The eligibility requirements include:

• Registration Status: The organization must be registered under the Indian Trusts Act, 1882, Societies Registration Act, 1860, or as a Section 8 company under the Companies Act, 2013, ensuring it has a formal legal structure.

• Operational History: A minimum of three years of active operations is required, proving the organization’s commitment to its objectives.

• Financial Commitment: The organization must have spent at least 10 lakhs on its core activities (excluding administrative expenses) over the last three years, demonstrating financial stability and impact.

• Governance Structure: No more than 49% of the governing body members can belong to the same family, ensuring diverse leadership and preventing conflicts of interest.

• DARPAN ID: A unique DARPAN ID from the NITI Aayog portal is mandatory, facilitating government oversight of NGOs.

Example: Consider ”Education for All,” a trust established in Mumbai in 2020. By 2025, it has completed four years of operations, spending ￿15 lakhs on educational programs for underprivileged children, holds a DARPAN ID, and has a diverse governing body. This makes it eligible to apply for FCRA registration to receive foreign grants for expanding its initiatives.

2.3 Procedure for FCRA Registration (Form FC-3A)

The registration process is entirely online, conducted through the FCRA portal (https://fcraonline.nic.in/), and involves meticulous documentation and adherence to timelines. The step-by-step process is as follows:

1. Access the FCRA Portal: Organizations must visit the official FCRA portal and create an
account by selecting the ”Sign Up” option, providing basic details such as the organization’s name,
registration number, and contact information.

2. Fill Form FC-3A: After logging in, select ”FCRA Registration” under the services menu. Form
FC-3A requires comprehensive details, including the organization’s objectives, executive committee
members’ profiles (with Aadhaar and PAN details), and details of the designated FCRA bank
account, which must be with the State Bank of India (SBI), New Delhi Main Branch.

3. Upload Documents: The following documents must be uploaded in PDF format:

• Registration certificate (e.g., trust deed, society registration certificate, or Section 8 company incorporation certificate).
• DARPAN ID certificate issued by NITI Aayog.
• Audited financial statements (Balance Sheet, Income and Expenditure, and Receipts and Payments) for the last three financial years.
• Activity report detailing programs and projects undertaken over the last three years.
• Governing body resolution authorizing the FCRA application.
• Details of the FCRA bank account with SBI, New Delhi.

4. Pay Fee and Submit: A non-refundable fee of 10,000 must be paid online. Once all details are verified, the form is submitted. No changes are permitted post-submission, so accuracy is critical.

5. Processing by MHA: The MHA reviews the application, which may involve scrutiny of the organization’s activities, financials, and compliance history. The process typically takes up to 90 days, after which a five-year FCRA registration certificate is issued if approved.

Example: "Education for All" initiates its FCRA registration on January 15, 2025, by submitting Form FC-3A with all required documents, including audited financials showing 15 lakhs spent on educational programs. The MHA approves the application on April 10, 2025, granting a registration valid until April 10, 2030, enabling the trust to receive foreign grants for its literacy programs.

2.4 Procedure for FCRA Renewal (Form FC-3C)

FCRA registration is valid for five years, after which renewal is mandatory to continue receiving and utilizing foreign contributions. The renewal process, governed by Rule 6 of FCRR, 2011, must be initiated between one year and six months before the registration expires. The detailed steps are:

• Check Eligibility: Ensure the organization holds a valid FCRA registration and has complied with all reporting requirements, such as filing Form FC-4 annually.
• Access the FCRA Portal: Log in to the FCRA portal using existing credentials.
• Fill Form FC-3C: Select "FCRA Renewal" and update details such as association information, bank account details, and executive committee changes since the last registration.
• Upload Documents: Submit:

• Current FCRA registration certificate.
• Audited financial statements for the last three years.
• Activity reports showcasing the use of foreign contributions.
• Utilization certificates for funds received.

• Pay Fee and Submit: Pay a renewal fee of 10,000 online and submit the form.
• Processing by MHA: The MHA processes the renewal within 90 days, extending the registration for another five years if approved.

Example: ”Education for All,” with its registration expiring on April 10, 2030, applies for renewal on October 10, 2029, submitting Form FC-3C with updated financials and activity reports. The MHA approves the renewal on January 5, 2030, extending the registration until January 5, 2035.

2.5 Timelines and Consequences

• Registration Timeline: The MHA typically processes Form FC-3A within 90 days. Delays may occur if documents are incomplete or additional scrutiny is required.

• Renewal Timeline: Applications for Form FC-3C must be submitted between one year and six months before expiry. Late applications are not accepted, leading to a lapse in registration.

• Consequences of Non-Compliance: Failure to register or renew on time prohibits NGOs from receiving or utilizing foreign contributions, potentially halting operations reliant on such funds. Non-compliance may also lead to cancellation of registration under Section 14 of the FCRA, 2010.

2.6 Pros and Cons

Pros:

– Enables legal receipt of foreign contributions, expanding funding opportunities.
– Enhances organizational credibility with international donors.
– Facilitates partnerships with global NGOs and institutions.

Cons:

– Stringent eligibility criteria, such as the 10 lakh expenditure requirement, may exclude newer NGOs.
– Ongoing compliance, including annual returns and audits, increases administrative burden.
– Risk of registration cancellation for non-compliance with FCRA norms.

Table 1: FCRA Registration vs. Renewal

2.7 Recent Updates (2025)

The FCRA Amendment Rules 2024, effective January 1, 2025, introduced flexibility in carrying forward unspent administrative expenses, provided justifications are included in annual returns. Additionally, the MHA extended FCRA registration validity until June 30, 2025, for NGOs whose renewals were due earlier, offering temporary relief (Extension of FCRA Certificate Validity Till 30 June 2025).