Last reviewed: 25 September 2026. There are two ways an NGO can legally receive foreign funds under FCRA - full registration, or prior permission. New NGOs often assume they can only get registration and give up when they do not meet the three-year condition. In fact, prior permission is designed exactly for them. Here is how the two routes differ and which one fits your NGO.
Quick summary
The two routes, side by side
| Feature | Registration | Prior Permission |
|---|---|---|
| For | Established NGOs | Newer NGOs |
| Track record needed | 3 years + Rs 15 lakh spent on core activities in the last three financial years | Not required |
| Scope | Any foreign source, for the objects | Specific donor, amount and project |
| Donor commitment | Not needed upfront | Committed donor and letter needed |
| Validity | 5 years, renewable | Tied to the approved project |
| Application fee and processing time | The Act asks MHA to decide applications ordinarily within 90 days. Fees are paid online with the form; check the current fee on the FCRA Online portal before filing. | |
| Utilisation and annual return | Receipt only in the SBI New Delhi FCRA account; spending through one or more separate utilisation accounts; annual return in Form FC-4 by 31 December for each financial year. | |
Which one fits you?
- Choose registration if your NGO is at least three years old, has spent Rs 15 lakh on its core activities in the last three financial years, and wants to receive foreign funds generally.
- Choose prior permission if you are a newer NGO with a specific foreign donor ready to fund a specific project - it lets you receive that grant now, and you apply for full registration later.
What both routes share
Both require the designated FCRA account at SBI New Delhi Main Branch, a NITI Aayog Darpan ID, Aadhaar of office bearers, and a genuine charitable track record and purpose. The application forms differ - registration in Form FC-3A and prior permission in Form FC-3B.
Conditions that apply after approval
- 20% administrative-expense cap: since the FCRA amendment of 2020, administrative expenses cannot exceed 20% of the foreign contribution received in a financial year.
- No transfer to other persons: foreign contribution cannot be passed on or sub-granted to any other person or NGO, even one that holds FCRA registration.
- Utilisation accounts: money is received only in the SBI New Delhi FCRA account and can then be moved to separate utilisation accounts. Domestic funds cannot be mixed into any of these accounts.
- Annual return: Form FC-4, certified by a Chartered Accountant, is due by 31 December for each financial year. File it even when nothing was received, and for prior permission until the amount is fully used.
Money from overseas foundations, foreign individuals or Indian-origin donors holding foreign citizenship generally counts as foreign contribution and must come in through this route. For the full matrix of foreign sources, see our NGO compliance hub.
Official sources: FCRA Online portal (MHA) · MHA FAQs on FCRA (PDF)
Frequently asked questions
What is the difference between FCRA registration and prior permission?
Registration is for established NGOs (3+ years, Rs 15 lakh spent on core activities in the last three financial years) and lets them receive foreign funds from any foreign source for their objects, for five years. Prior permission is for newer NGOs and allows a specific amount from a specific donor for a specific project.
Which route should a new NGO take?
A newly formed NGO that cannot meet the three-year and Rs 15 lakh conditions applies for prior permission tied to a committed donor and project, then moves to full registration once it qualifies.
Does prior permission need a committed donor?
Yes. Prior permission is granted for a specific foreign donor and a specific purpose, usually supported by a commitment letter from the donor stating the amount and the project.
Is the SBI account needed for prior permission too?
Yes. The designated FCRA account at SBI New Delhi Main Branch is required for both registration and prior permission, as all foreign contribution must land there first.
How long does prior permission last?
It applies to the specific project and amount approved. Registration, by contrast, is a five-year, renewable status for receiving foreign funds generally.
Can prior permission be converted to registration?
There is no automatic conversion - once the NGO meets the eligibility conditions, it applies afresh for full FCRA registration.
We assess your eligibility and donor position, and file the right application - registration or prior permission.
12A & 80G RegistrationGovernment SupportTalk to CA Somesh Chandak & Associates - we are happy to help.
WhatsAppLinkedInSchedule a callDisclaimer: This article is for general guidance only and is not a substitute for advice on your specific facts and the latest FCRA rules. Please consult before applying.