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Form 10BD and 10BE Explained: Step-by-Step Filing Guide for NGOs Share To ensure transparency and accuracy in reporting donations, the Government of …
If your NGO is accepting funds from abroad, it’s important to follow the right legal process. The Union Home Ministry has warned that NGOs receiving and using foreign funds without a valid FCRA registration, or after it has expired, could face heavy penalties.
To stay on the safe side, make sure your NGO is properly registered under the FCRA. In this guide, we’ll explain the rules, conditions, and steps in simple terms so you can stay compliant and avoid legal trouble.
Don’t take risks with your NGO’s funding! Get your FCRA registration done smoothly and on time.
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On January 21, 2025, the Union Home Ministry issued a strong warning to NGOs about penalties for accepting foreign funds without proper registration under the Foreign Contribution Regulation Act (FCRA), 2010. Here are the key points:
• FCRA Registration is a Must – No NGO or individual can receive foreign funds without a valid FCRA registration or prior approval from the Central Government.
• Funds Must Be Used Correctly – Any foreign contribution received must be strictly used for the purpose it was granted.
• Timely Renewal Required – NGOs must renew their FCRA certificate at least six months before it expires.
• No Funds After Expiry – If an NGO’s FCRA registration expires, it cannot receive or use foreign funds.
FCRA registration is a mandatory process under the Foreign Contribution Regulation Act (FCRA), 2010, which allows individuals, associations, or companies in India to legally receive foreign donations. This process, managed by the Ministry of Home Affairs (MHA), ensures that foreign funds are used transparently and only for the intended purpose.
If an NGO wants to accept foreign funds, it must register under FCRA. The Ministry of Home Affairs offers two options:
• Permanent FCRA Registration – Suitable for NGOs operating for at least three years with a proven social impact. To apply, they must submit Form FC-3A along with supporting documents.
• Prior Permission – For one-time foreign contributions, NGOs can seek prior approval from the MHA’s FCRA Section.
Registering under FCRA ensures compliance and smooth access to foreign funding for NGOs working towards social causes.
If an NGO is newly established and has not completed three years of operation, it must get prior permission before accepting foreign donations. The NGO should have a specific project in place and a confirmed commitment from a foreign donor stating the donation amount and purpose.
The Ministry of Home Affairs (MHA) reviews each application carefully before granting permission. To apply, NGOs need to submit Form FC-3B. However, if an NGO plans to receive regular or multiple foreign donations, it is better to apply for permanent FCRA registration.
FCRA registration is legally required for NGOs to receive foreign donations. It ensures that funds are used transparently and only for the intended purpose. This helps NGOs comply with Indian laws, avoid penalties, and maintain credibility. Without FCRA registration, NGOs risk fines, fund seizures, and restrictions on receiving foreign contributions.
To apply for FCRA registration, an NGO must meet these key requirements:
• Legal Registration: The NGO should be registered under a relevant Indian law, such as the Societies Registration Act, 1860, the Indian Trusts Act, 1882, or Section 8 of the Companies Act, 2013.
• NGO Darpan ID: Registration on the NITI Aayog portal is mandatory. The NGO must obtain an NGO Darpan ID to proceed with the FCRA application.
• FCRA Bank Account: A separate bank account must be opened specifically for receiving foreign contributions. This account cannot be used for regular transactions.
• Aadhaar for Key Officials: The Aadhaar number of key office bearers is required. If the NGO has foreign nationals managing it in India, they must submit a passport or OCI card instead.
NGOs must have a dedicated FCRA bank account solely for receiving foreign funds. This account must be mentioned in the FCRA application. Once registered, the Ministry of Home Affairs (MHA) will notify the bank to monitor transactions and report any suspicious activity.
Important:
NGOs already registered under FCRA cannot receive foreign funds in any account other than the designated FCRA account.
New applicants should open the FCRA bank account only after receiving FCRA approval from the MHA.
FCRA registration remains valid for five years, and NGOs must renew it before expiry to continue receiving foreign donations.
As per the latest rules, NGOs must apply for renewal at least six months before expiration. If they fail to do so, they may face penalties and restrictions on receiving foreign contributions.
Ensure that you have the following mandatory documents ready when applying for FCRA registration.
• NGO Registration Certificate (self-certified by the chief functionary)
• MOA / Trust Deed (self-certified by the chief functionary)
• Activity Report of the last 3 years
• Audited Financial Statements of the last 3 years
• NGO Registration Certificate (self-certified by the chief functionary)
• Trust Deed (self-certified by the chief functionary) / Memorandum of Association
• Commitment Letter from the Donor Organization & Agreement
• Project Report detailing the purpose of the foreign contribution
• NGO Registration Certificate (self-certified by the chief functionary)
• MOA / Trust Deed (self-certified by the chief functionary)
• Existing FCRA Registration Certificate (issued by MHA)
Important: Start your renewal process on time to avoid any disruption in receiving foreign funds!
Registering or renewing your NGO’s FCRA certificate is a simple online process. Here’s the guide.
Step 1: Visit the FCRA Portal
Go to the official FCRA portal of the Ministry of Home Affairs (MHA). Click on the “Services under FCRA” section.
Step 2: Choose the Right Application Form
Select the appropriate form based on your requirement:
• FC-3A – For FCRA Registration
• FC-3B – For Prior Permission Registration
• FC-3C – For FCRA Renewal
• FC-4 – For Filing FCRA Annual Return
Step 3: Start Your Application
Click on “Click to Apply Online”.
Step 4: Sign Up or Log In
• New Users – Click on “Sign Up Here”.
• Existing Users – Log in using your ID & Password.
Step 5: Create a Login ID
Create a Login ID After registering on the portal you will receive a confirmation mail.
Step 6: Select the Right Registration Type
From the dropdown menu, select the appropriate option for your NGO:
• FC-3A – For FCRA Registration
• FC-3B – For Prior Permission Registration
• FC-3C – For FCRA Renewal
• FC-4 – For Filing Annual Return
Step 7: Fill Out the FC-3 Form
Enter details such as:
✔ NGO Registration Details
✔ Darpan ID (if available)
✔ Nature and Purpose of the NGO
Step 8: Provide NGO & Executive Committee Details
Enter the following:
✔ NGO Address & Registration Number
✔ Main Objectives & Activities
✔ Details of Office Bearers & Key Functionaries
Step 9: Add FCRA Bank Account Details
Your FCRA bank account must be with SBI, New Delhi Main Branch to receive foreign contributions. Provide:
✔ Bank Name & Branch
✔ Account Number & IFSC Code
✔ Bank Address
Step 10: Upload Required Documents
Ensure you upload all the necessary documents in PDF format, as per the MHA guidelines.
Step 11: Review & Submit Your Application
✔ Check all details carefully
✔ Fill in the place and date fields
✔ Click “Final Submission”
Step 12: Make Payment
Complete the registration by making the online payment. The fee depends on the registration type (new, prior permission, or renewal).
Step 13: Confirmation & Tracking
Once payment is made:
✔ Your application is officially submitted
✔ You will receive a confirmation message
✔ Track your application or renewal status on the FCRA portal
Following these steps will help your NGO register or renew FCRA hassle-free!
If your NGO or trust is registered under FCRA and receives foreign donations, you must file an annual return with the Ministry of Home Affairs (MHA) every year. This return provides details of:
✔ The amount received
✔ How the funds were utilized
The return must be filed for each financial year (April 1 to March 31) and submitted by December 31 (within nine months after the financial year ends).
✔ Balance Sheet
✔ Statement of Receipts & Payments
✔ Certification by a Chartered Accountant
NGOs must submit the return using Form FC-6 through the FCRA online portal. Even if no foreign funds were received or used, filing a ‘Nil’ return is still mandatory.
Before accepting any foreign contributions, make sure your FCRA registration is valid by following these steps:
1. Go to the MHA FCRA Portal
2. Click on “FCRA Registration Number”
3. Enter the Access Code
4. Check the validity of your certificate
If your registration has expired, renew it promptly to continue receiving foreign funds.
The government has strict penalties for NGOs that fail to comply with FCRA rules. Below are the key penalties:
1. Accepting Foreign Contributions Without Registration
Fine: ₹1,00,000 or 30% of the received amount, whichever is higher.
2. Failure to Report Receipt of Foreign Funds on Time
Fine: 5% of the total foreign contribution received in the financial year.
3. Not Reporting Foreign Contribution Bank Account
Fine: ₹10,000 per unreported account.
4. Failure to Provide Required Details on Time
Fine: ₹10,000 per delayed report.
5. Not Uploading Mandatory Information on Website
Fine: ₹10,000 for each instance of non-compliance.
To avoid penalties, NGOs must follow all FCRA rules, submit timely returns, and ensure their registration remains valid.
Here’s a simple breakdown of the penalties under the FCRA for NGOs:
| Violation | Penalty |
|---|---|
| Accepting foreign contributions without registration. | ₹1,00,000 or 30% of the received amount, whichever is higher. |
| Failing to report receipt of foreign contribution on time. | 5% of the total foreign contribution received in the financial year. |
| Not reporting the opening of foreign contribution bank accounts on time. | ₹10,000 per unreported account. |
| Not providing required details within the deadline. | ₹10,000 per instance of delay. |
| Failing to upload required information on the website on time. | ₹10,000 per delayed update. |
Don’t let your NGO face penalties due to non-compliance. Make sure your FCRA registration for NGOs & Trust is valid, or renew it before expiry. Need help? Our experts can guide you through the entire process, making it quick and stress-free. Stay compliant and continue your mission without worries!
At E Accountax Manager, we simplify NGO registration, FCRA registration, compliance, and renewal. Our experts guide you through the entire NGO registration process, from choosing the right structure for registration (Trust Registration, Society Registration, or Section 8 Company Registration) to legal documentation and approvals. Stay compliant, avoid penalties, and focus on your mission while we handle the complexities. Trust us for reliable, expert-driven financial solutions!
CA Jitendra Agarwal, a Chartered Accountant, is an experienced Income Tax Advisor with a proven track record in tax planning and compliance.
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