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.
Before the Central Government grants a certificate or prior permission under section 12(3), it must be of the opinion that the conditions in section 12(4) are satisfied. They are the test of eligibility: who the applicant is, what it has done, what it proposes to do, who runs it and what its foreign money must not affect.
This article reads section 12(4) as per the Act as enacted, read with the Foreign Contribution (Regulation) Amendment Act, 2020 (33 of 2020), which did not change sub-section (4). Later amendments should be checked.
Section 12(4) has seven groups of conditions: the applicant (a) is not fictitious or benami and has a clean record on eight points, (b) for registration, has undertaken reasonable activity in its chosen field, (c) for prior permission, has prepared a reasonable project, (d) and (e) neither the individual nor any director or office-bearer has been convicted or has a prosecution pending, (f) the acceptance is not likely to prejudice six public interests, and (g) it will not lead to incitement of an offence or endanger life or safety.
How the conditions fit together
Sub-section (3) of section 12 says the Government may register a person or give prior permission if it is "of the opinion that the conditions specified in sub-section (4) are satisfied". The grant procedure is explained in the previous article on section 12. Sub-section (4) itself says "the following shall be the conditions for the purposes of sub-section (3)". Organisations that want these points checked against their own history before filing can use our 12A, 80G and CSR registration service for the wider registration groundwork. The conditions are cumulative in form: clauses (a), (d) to (g) apply to every applicant, while (b) is for registration and (c) is for prior permission.
The conditions are also tested again at renewal: the proviso to section 16(1), added in 2020, lets the Government inquire before renewing whether the person "has fulfilled all conditions specified in sub-section (4) of section 12". See the article on section 16.
Clause (a): the applicant's record
The person making the application under sub-section (1):
| Sub-clause | Condition |
|---|---|
| (i) | Is not fictitious or benami |
| (ii) | Has not been prosecuted or convicted for indulging in activities aimed at conversion through inducement or force, either directly or indirectly, from one religious faith to another |
| (iii) | Has not been prosecuted or convicted for creating communal tension or disharmony in any specified district or any other part of the country |
| (iv) | Has not been found guilty of diversion or mis-utilisation of its funds |
| (v) | Is not engaged or likely to engage in propagation of sedition or advocate violent methods to achieve its ends |
| (vi) | Is not likely to use the foreign contribution for personal gains or divert it for undesirable purposes |
| (vii) | Has not contravened any of the provisions of this Act |
| (viii) | Has not been prohibited from accepting foreign contribution |
Some of these look back: (ii), (iii), (iv), (vii) and (viii) concern past prosecution, conviction, findings, contravention or prohibition. Others look forward: (v) and (vi) speak of what the applicant is "likely" to do. Sub-clause (viii) connects to the power to prohibit in section 9; see the article on section 9. Sub-clause (vii) connects to section 14(1)(d), where violation of the Act is a ground for cancellation. Note the difference between "prosecuted or convicted" in (ii) and (iii) and "found guilty" in (iv). A prosecution alone, in the first two, is enough to fail the condition on the words as printed.
Clause (b): reasonable activity (registration)
For registration, the person "has undertaken reasonable activity in its chosen filed for the benefit of the society for which the foreign contribution is proposed to be utilised". The word "filed" is a slip for "field" in the Act's own text; it is quoted as printed. The measure of "reasonable activity" is a matter for the Rules. Rule 9(1)(f) adds requirements for applicants for registration; see the article on rule 9. Rule 14A explains "reasonable activity" in another context; see the article on rules 14 and 14A. This article does not state the figures in either rule.
Clause (c): reasonable project (prior permission)
For prior permission, the person "has prepared a reasonable project for the benefit of the society for which the foreign contribution is proposed to be utilised". A project proposal is therefore the document that carries the case: it should state the purpose, the source and the beneficiaries, because prior permission is valid only for the specific purpose and source.
Clauses (d) and (e): convictions and pending prosecutions
- (d) where the person is an individual, he has neither been convicted under any law for the time being in force nor has any prosecution for any offence pending against him.
- (e) where the person is other than an individual, none of its directors or office-bearers has been convicted under any law for the time being in force or has any prosecution for any offence pending against him.
These clauses reach offences under "any law", not only the FCRA. For a society, trust or company, every director or office-bearer must be checked; the question is for the board as a whole, so changes to the governing body before an application should be planned with this clause in mind.
Example (invented). Ananya Trust applies for registration. One of its five trustees has a prosecution pending for an offence under another law. Under clause (e) the condition looks at "any of its directors or office bearers", so the trust's case turns on that trustee, and the trustees should take advice before filing.
Clause (f): six public interests
The acceptance of foreign contribution by the person referred to in sub-section (1) must not be "likely to affect prejudicially":
- the sovereignty and integrity of India;
- the security, strategic, scientific or economic interest of the State;
- the public interest;
- the fair and uninfluenced conduct of an election to any Legislature;
- friendly relation with any foreign State; or
- harmony between religious, racial, social, linguistic, regional groups, castes or communities.
Compare the five grounds in the proviso to section 9, which are the same list without the second item; the prohibition powers there are in the article on section 9.
Clause (g): incitement and safety
The acceptance of foreign contribution "(i) shall not lead to incitement of an offence; (ii) shall not endanger the life or physical safety of any person."
Need help assessing your eligibility?
A short checklist review before filing, covering governing-body members, past activity and the project, can prevent a refusal. Our 12A, 80G and CSR registration team can help you prepare the records an eligibility review will need.
Key takeaways
- Section 12(4) states the conditions for the purposes of section 12(3); the Government must be of the opinion that they are satisfied.
- Clause (b) applies to registration (reasonable activity in the chosen field), clause (c) to prior permission (a reasonable project).
- Clauses (d) and (e) look at convictions and pending prosecutions under any law, for the individual or for directors and office-bearers.
- Clause (f) lists six public interests; clause (g) covers incitement and safety.
- The Rules add detail for clause (b); the text of the Act has a slip, "chosen filed".
Read next
- Section 12: application, grant, refusal and validity
- Section 12A: Aadhaar, passport or OCI card
- Section 14: cancellation of certificate
- Rule 9: application for registration, conditions and scope
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.