Section 12 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 12 is the procedure for getting a certificate of registration or prior permission: who applies, what happens to a defective application, the ninety-day period, what must be said on refusal, and how long the certificate lasts. The Amendment Act, 2020 inserted sub-section (1A). The conditions the Government must be satisfied about, in sub-section (4), are taken up in the next article.
This article reads section 12 as per the Act as enacted, read with the Foreign Contribution (Regulation) Amendment Act, 2020 (33 of 2020), paragraph 6, which inserted sub-section (1A). Later amendments should be checked.
An application for a certificate or prior permission is made in the form and manner and with the fee prescribed. A defective application is rejected by order. If the conditions in sub-section (4) are met, the Government may, ordinarily within ninety days, grant a certificate or prior permission; if not, it must communicate reasons. A certificate is valid for five years; prior permission is valid for the specific purpose or amount. An applicant must now open an "FCRA Account" and give its details in the application.
Section 12(1) and (1A): the application
Section 12(1) says an application by a person referred to in section 11 for grant of a certificate or giving prior permission "shall be made to the Central Government in such form and manner and along with such fee, as may be prescribed". The rule on applications is rule 9, explained in the article on rule 9 on application for registration; this article does not state the form, the fee or the documents.
Sub-section (1A), inserted by paragraph 6 of the Amendment Act, 2020, reads: "Every person who makes an application under sub-section (1) shall be required to open 'FCRA Account' in the manner specified in section 17 and mention details of such account in his application." So the account must exist before the application is made, and its details must be in the application. The FCRA Account is explained in the article on section 17. Section 12A, also inserted in 2020, adds identification documents; see its article.
Organisations planning an application should first have their own registration and records in order. Our NGO Darpan and NITI Aayog registration service helps with that groundwork; this article does not describe the form or its fields.
Section 12(2): defective applications
On receipt of an application, the Central Government "shall, by an order, if the application is not in the prescribed form or does not contain any of the particulars specified in that form, reject the application". The word is "shall": a defective application is rejected, not returned for repair. Check the form and every particular before filing.
Section 12(3): grant within ninety days
If, after making such inquiry as it deems fit, the Central Government is of the opinion that the conditions in sub-section (4) are satisfied, it "may, ordinarily within ninety days from the date of receipt of application under sub-section (1), register such person and grant him a certificate or give him prior permission", subject to such terms and conditions as may be prescribed.
Two provisos qualify this.
- First proviso: if the Government does not grant a certificate or prior permission within the ninety days, "it shall communicate the reasons therefor to the applicant".
- Second proviso: a person is not eligible for a certificate or prior permission "if his certificate has been suspended and such suspension of certificate continues on the date of making application". Suspension is explained in the article on section 13.
The word "ordinarily" means ninety days is the usual period, not an absolute one; the first proviso then requires reasons to be communicated if the period passes without grant. The text does not say that the application is deemed granted after ninety days, and this article does not suggest it.
Section 12(5): refusal and reasons
Where the Central Government refuses the grant of a certificate or does not give prior permission, "it shall record in its order the reasons therefor and furnish a copy thereof to the applicant". The proviso allows it not to communicate reasons "in cases where is no obligation to give any information or documents or records or papers under the Right to Information Act, 2005". The words "where is no obligation" are a slip in the Act's own text (a word is missing); read the proviso as printed and check the official text.
An order refusing permission under the Act can be appealed to the High Court within sixty days under section 31(2), which also names orders under sub-sections (2) and (4) of section 12; see the article on section 31.
Section 12(6): validity
The certificate granted under sub-section (3) "shall be valid for a period of five years", and the prior permission "shall be valid for the specific purpose or specific amount of foreign contribution proposed to be received, as the case may be". Renewal is covered in the article on section 16.
What the 2020 Amendment Act changed in section 12
| As enacted | After the 2020 Amendment Act |
|---|---|
| Sub-section (1) is followed directly by sub-section (2) | Sub-section (1A) inserted: open an "FCRA Account" in the manner specified in section 17 and mention its details in the application |
| No identification-document provision in the section | Separate section 12A inserted: Aadhaar number of office-bearers, Directors or other key functionaries, or passport or Overseas Citizen of India Card of a foreigner |
| Sub-sections (2), (3), (5), (6) | Unchanged |
Example (invented). Pragati Mahila Samiti files an application for a certificate without having opened an FCRA Account. Section 12(1A) required the account to be opened and its details mentioned in the application, so the application is incomplete in a way the Act itself identifies. Whether it is rejected under section 12(2) depends on the prescribed form and particulars, which this article does not state.
Need help preparing an FCRA application?
Applications that are incomplete are rejected, and a rejected application costs time. If you want your documents and registrations reviewed before filing, speak to our NGO Darpan and NITI Aayog registration team about the groundwork.
Key takeaways
- The application is made in the prescribed form and manner and with the prescribed fee; rule 9 governs.
- Since 2020, section 12(1A) requires an FCRA Account to be opened and its details given in the application.
- A defective application "shall" be rejected under section 12(2).
- The Government may ordinarily grant within ninety days; if not, it must communicate the reasons.
- A certificate is valid for five years; prior permission for the specific purpose or amount.
Read next
- Section 11: registration or prior permission
- Section 12: conditions for registration and prior permission
- Section 12A: Aadhaar, passport or OCI card
- Section 16: renewal of certificate
Disclaimer: Based on the Foreign Contribution (Regulation) Act, 2010 as enacted, read with the Amendment Act, 2020 and the other amendments named in this article, and on the Foreign Contribution (Regulation) Rules, 2011 as amended by the notifications named (latest consulted: S.O. 3272(E) dated 22 June 2026), as consulted on 2 October 2026. No consolidated official text was available; some provisions rest on a third-party copy and are identified as such. Later amendments, notifications and Ministry of Home Affairs orders should be checked. This article is general information, not legal advice; check the official text before acting.