Understanding FCRA
The Foreign Contribution (Regulation) Act, 2010 (FCRA) regulates the acceptance and utilisation of foreign contributions by persons and organisations in India. Any NGO, trust, society, or Section 8 company wishing to receive donations, grants, or contributions from foreign sources must register under FCRA or obtain prior permission from the Ministry of Home Affairs (MHA).
FCRA compliance is stringent and non-negotiable — failure to comply can result in cancellation of registration, freezing of the FCRA bank account, and even criminal prosecution. Mahesh Kaushik & Co. provides comprehensive FCRA advisory and compliance services to ensure your organisation remains in good standing.
FCRA Registration & Prior Permission
- Assessment of eligibility for FCRA registration (5-year existence requirement, etc.)
- Preparation and filing of application for FCRA registration on the MHA portal
- Application for Prior Permission (PP) for organisations not yet eligible for registration
- Renewal of FCRA registration (mandatory every 5 years)
- Advisory on designated FCRA bank account with State Bank of India, New Delhi Main Branch
- Assistance in opening and operating the designated FCRA account
Annual Compliance & Reporting
- Preparation and filing of Annual Return (FC-4) with MHA within the due date
- Maintenance of FCRA-specific books of account and separate registers
- Quarterly upload of receipt and utilisation details on the MHA portal
- Reconciliation of foreign contributions received with bank statements
- Ensuring proper utilisation ratio — administrative expenses cap compliance
- Certification requirements under FCRA rules — CA certificate preparation
Amendments & Intimations
- Filing of FC-6 forms for changes in key functionaries, address, or bank account
- Intimation for opening of utilisation accounts across districts
- Advisory on permissible and non-permissible foreign sources
- Guidance on sub-granting / re-granting of FCRA funds to other organisations
Handling MHA Notices & Inspections
The Ministry of Home Affairs periodically scrutinises FCRA registrations and may issue show-cause notices or conduct inspections. Our team assists with:
- Drafting responses to MHA show-cause notices and query letters
- Preparation of records and documents for MHA inspection visits
- Representation during personal hearings before MHA officials
- Advisory on rectifying past non-compliances and voluntary disclosure
- Assistance in cases of suspended or cancelled FCRA registration
Key Compliance Points Under FCRA 2010 (as amended)
- All foreign contributions must be received only in the designated SBI New Delhi Main Branch account
- Administrative expenses cannot exceed 20% of total foreign contribution received
- Sub-granting to other organisations is permitted only to FCRA-registered entities
- Annual Return (FC-4) must be filed by 31st December each year
- Foreign contribution cannot be used for speculative activities or political purposes
- Quarterly statements must be uploaded on the FCRA online portal
Who We Serve
We assist a wide range of organisations including charitable trusts, religious societies, cultural organisations, Section 8 companies, educational institutions, healthcare NGOs, and development sector organisations — all of whom receive or intend to receive foreign funding from bilateral agencies, international foundations, or diaspora donors.