FCRA registration is a mandatory license granted by the Ministry of Home Affairs (MHA) under the Foreign Contribution (Regulation) Act, 2010. It is a legal prerequisite for any 'person' in India, including individuals, associations, or companies, to accept and utilize foreign contributions for their objectives. This system regulates the flow of foreign funds to Indian entities, preventing misuse and ensuring their use aligns with national interests.
Without proper FCRA registration, an organization cannot receive foreign donations. This system aims to prevent the misuse of foreign funds and ensure their utilization aligns with national interests, while also providing transparency and accountability in the social sector.
FCRA Act: Legal Basis for Registration
The Foreign Contribution (Regulation) Act, 2010 (FCRA, 2010), and its subsequent amendments, have established a strict framework for foreign funds.
- It replaced the earlier FCRA, 1976, with stricter regulations on the receipt and use of foreign funds.
- The Act applies to individuals, associations, and companies receiving foreign contributions.
- Key amendments, including the FCRA Amendment Act, 2020, and the Amendment Rules, 2025, have tightened compliance.
- Changes affect eligibility criteria, fund utilization, designated bank accounts, and reporting obligations.
- Understanding and complying with these updates is essential for securing and maintaining FCRA registration.