FCRA Registration and Prior Permission for NGOs
Understand advance permission, Darpan, designated banking and foreign-contribution controls.
Understand advance permission, Darpan, designated banking and foreign-contribution controls. Use the sections below to understand the practical decisions, records and compliance points before taking action.
Foreign contribution needs advance authority
An NGO must not receive or utilise foreign contribution without valid FCRA registration or prior permission covering the receipt. Trust, Society, Section 8, tax or Darpan registration alone does not authorise foreign funding.
Registration and prior permission differ
Registration is a broader certificate subject to statutory eligibility and validity. Prior permission is tied to a specific donor, amount and project. New organisations should not assume they qualify immediately for regular registration.
Prepare Darpan and identity information
The official framework requires Darpan ID and prescribed identity details for online FCRA services. Governing-body composition, activities, accounts and programme evidence should be accurate.
Use the designated banking framework
Foreign contribution must initially enter the prescribed FCRA account at SBI Main Branch, New Delhi. Domestic funds cannot be deposited into that receipt account, and utilisation accounts follow the statutory framework.
Plan utilisation and reporting controls
Maintain donor, purpose, bank, project, asset and expenditure records. Transfers, administrative expense, changes, annual returns and renewal are regulated.
Errors and violations carry serious consequences
Final applications should be reviewed before submission because rectification can be constrained. Receiving funds without permission, late returns or misuse can lead to penalties, suspension, cancellation or compounding proceedings.
Official References
Rules and portal requirements can change. Review the current official material relevant to the proposed company.
This article provides general information and is not a substitute for legal, tax or investment advice. Applicability should be reviewed for the proposed entity and current law.