Quick Summary
Getting FCRA (Foreign Contribution Regulation Act) approval is essential for any Section 8 company that wants to receive foreign donations and funding. This comprehensive guide walks you through the complete process of obtaining FCRA registration, from understanding eligibility criteria to submitting your application successfully. Whether you’re planning for online Section 8 company registration in India or already have your NGO incorporated, with the right preparation and professional guidance, your Section 8 company will be well-positioned to receive FCRA approval and access the global funding ecosystem.
Overview:
When you register a Section 8 company in India, you’re creating a non-profit organization dedicated to promoting social welfare, education, healthcare, environmental protection, or other charitable causes. Basically, it acts as your legal vehicle for making a real difference in society while enjoying numerous tax benefits and credibility advantages. The journey from company incorporation in India to FCRA approval may seem daunting, but thousands of Section 8 companies have successfully navigated this path. However, if your Section 8 company wants to accept donations from foreign sources, you absolutely need FCRA registration. Without it, receiving foreign contributions is illegal and can land your organization in serious trouble with the Ministry of Home Affairs.
With this comprehensive guide as your roadmap, you can definitely lead a successful FCRA approval journey with confidence.
What is FCRA Registration?
FCRA stands for the Foreign Contribution (RegWulation) Act, 2010. It’s essentially a regulatory framework that governs how organizations in India can receive and utilize foreign donations. When you complete the company registration process in India for your Section 8 entity, FCRA registration becomes your gateway to international funding.
Why FCRA Approval is Important for Section 8 Companies
Running a non-profit in India isn’t easy. FCRA ensures that foreign funds entering India are used exclusively for genuine social causes and not for activities that could harm national interests. It not only helps your non-profit in preventing foreign interference in India’s internal affairs, but also promotes legitimate international collaboration.
With FCRA registration, your Section 8 company can tap into international grants, corporate foundations abroad, and individual philanthropists worldwide. Organizations without FCRA miss out on millions of rupees in potential funding.
On the other hand, having FCRA approval helps in building trust with donors, beneficiaries, and regulatory authorities alike.
It is important to note that without FCRA registration is illegal. Violations can result in penalties, cancellation of your Section 8 license, and even criminal prosecution.
Benefits of FCRA Registration
Once you secure FCRA approval for your Section 8 company, several doors open up:
- Access to International Grants: Apply for funding from global foundations like the Gates Foundation, the Ford Foundation, and numerous European and American grant-making organizations
- Corporate Partnerships: Collaborate with multinational companies’ CSR initiatives and international development programs
- Credibility Boost: Demonstrates your organization’s legitimacy and transparency to all stakeholders
- Five-Year Validity: FCRA registration remains valid for five years, providing long-term funding stability
- Pan-India Operations: Receive and utilize foreign funds anywhere in India without state-wise restrictions
- Tax Benefits: Donors receive tax exemptions under Section 80G when your Section 8 company has both FCRA and 80G registration
Step-by-Step Process to Get FCRA Approval
Step 1: Ensure Your Section 8 Company Meets Basic Criteria
Before applying for FCRA, confirm that your organization satisfies these fundamental requirements. Your Section 8 company must have been operational for at least three years from the date of company incorporation in India. During these three years, you should have spent a minimum of ₹10,00,000 (excluding administrative expenses) on your stated charitable objectives. This demonstrates that your organization is genuinely active and impactful.
Step 2: Complete Prerequisite Registrations
Register your Section 8 company on the NITI Aayog NGO Darpan portal and obtain your unique NGO Darpan ID. While not mandatory, having 12A and 80G registration from the Income Tax Department significantly strengthens your FCRA application. Consider obtaining CSR-1 registration as well, which makes you eligible for corporate social responsibility funding.
Step 3: Open Your FCRA-Designated Bank Account
You must open a designated FCRA bank account exclusively with the State Bank of India (SBI), Main Branch, New Delhi. No other bank or branch is permitted to receive foreign contributions. This account will be used solely for receiving and managing foreign funds.
Step 4: Gather Required Documents
Collect all necessary documentation including your Certificate of Incorporation, Section 8 license, Memorandum of Association (MoA) and Articles of Association (AoA), audited financial statements for the last three years, detailed activity reports showcasing your social impact, proof of spending ₹10 lakhs on objectives, PAN and TAN of the company, Aadhaar cards of all key office bearers, and SBI FCRA bank account details.
Step 5: Submit Online Application
Visit the official FCRA portal at fcraonline.nic.in and create your account. Fill out Form FC-3A (for standard FCRA registration) meticulously, providing accurate information about your Section 8 company’s objectives, past activities, financial details, and intended use of foreign contributions. Attach all scanned documents and pay the application fee online.
Step 6: Address Queries and Follow Up
The Ministry of Home Affairs may raise queries or request additional information during the review process. Respond promptly and accurately to avoid delays. The typical processing time ranges from 6 to 12 months, so patience is essential.
Step 7: Receive FCRA Certificate
Once approved, you’ll receive your FCRA registration certificate, valid for five years. Remember to apply for renewal at least six months before expiry to maintain uninterrupted access to foreign funding.
Important Checklist for FCRA Application
| Category | Requirements | |
| Operational History | Minimum 3 years since the Section 8 company registration | |
| Financial Track Record | Spent ≥ ₹10,00,000 on objectives (excl. admin costs) | |
| Bank Account | SBI Delhi FCRA-designated account opened | |
| Income Tax Registrations | 12A and 80G certificates obtained | |
| NITI Aayog | NGO Darpan ID secured | |
| Documentation | All audited statements for 3 years ready | |
| Activity Reports | Comprehensive reports with photos/testimonials | |
| Digital Signatures | DSC obtained for authorized signatories | |
| Foreign Member Compliance | No foreign nationals as chief functionaries | |
| Asset Declaration | Undertaking that the assets used only for FCRA activities |
Quick Tips to Secure FCRA Approval Successfully
Tip 1: Start Early. After Section 8 Company Registration Fees Are Paid, begin planning for FCRA immediately after your company incorporation in India is complete.
Tip 2: Maintain Impeccable Financial Records. Hire a qualified Chartered Accountant from day one
Tip 3: Document Everything. Create detailed activity reports with photographs, beneficiary testimonials, and quantitative impact metrics.
Tip 4: Avoid Foreign Nationals in Key Positions. Ensure your chief functionary (CEO/Director/Secretary) is an Indian citizen.
Tip 5: Consider Prior Permission Route for New Organizations. If your Section 8 company is newly registered and needs foreign funding urgently, apply for Prior Permission (Form FC-3B) instead.
Frequently Asked Questions (FAQs)
Q1: Can I apply for FCRA immediately after Section 8 company registration in India? No, your Section 8 company must be operational for at least three years before applying for FCRA registration.
Q2: What are the Section 8 company registration fees in India, and does it affect FCRA eligibility? Section 8 company registration fees typically range from ₹5,000 to ₹15,000, depending on your service provider and state.
Q3: Is FCRA mandatory for all Section 8 companies? No, FCRA is required only if your Section 8 company wants to receive foreign contributions. If you plan to rely solely on domestic funding sources, FCRA registration is not necessary.
Q4: Can foreign nationals be directors of a Section 8 company with FCRA? Yes, foreign nationals can be directors, but they cannot hold the position of chief functionary.
Q5: How long is FCRA registration valid? FCRA registration is valid for five years from the date of issuance. You must apply for renewal at least six months before expiry to avoid lapses in your ability to receive foreign funds.
Conclusion
Securing FCRA approval for your Section 8 company opens up transformative opportunities for scaling your social impact. Ready to start your FCRA application journey? Get connected with NGO Experts today for hassle-free Section 8 company formation and begin gathering documentation today. The sooner you start, the sooner you’ll unlock global funding opportunities for your noble cause.