Who Can Receive Foreign 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 11 of the Foreign Contribution (Regulation) Act, 2010 answers the question "who can receive foreign contribution". A person with a definite cultural, economic, educational, religious or social programme may do so only with a certificate of registration or, if unregistered, with prior permission for a specific purpose and source.
This article is as per the Foreign Contribution (Regulation) Act, 2010 read with the Amendment Act, 2020 (33 of 2020), which replaced the opening of the proviso to section 11(2) with two provisos, inserted section 12(1A) and inserted section 12A, and the Foreign Contribution (Regulation) Rules, 2011 as amended by the notifications named in this article (latest consulted: S.O. 3272(E) dated 22 June 2026). Later amendments, notifications and Ministry of Home Affairs orders should be checked.
No person with a definite cultural, economic, educational, religious or social programme shall accept foreign contribution unless he obtains a certificate of registration (section 11(1)). A person who is not registered may accept it only after prior permission, valid for the specific purpose and specific source (section 11(2)). Since 2020 the Central Government may, after a summary inquiry, stop a prior-permission holder from using or receiving more. Certain classes may be required to obtain prior permission by notification (section 11(3)).
Section 11(1): registration
The sub-section opens "save as otherwise provided in this Act", so the exceptions elsewhere (for example in section 4) still apply. The test is the nature of the person's programme: it must be a "definite" cultural, economic, educational, religious or social programme. "Person" includes an individual, a Hindu undivided family and an association, and an association includes a society whether registered or not; see our article on the definitions in section 2.
The proviso to section 11(1) deals with associations that held registration or prior permission under section 6 of the Foreign Contribution (Regulation) Act, 1976: they were deemed registered or permitted under the 2010 Act, and that registration was valid for five years from the date on which section 11 came into force. The date is not given in the sources consulted and is not stated here. If you are weighing registration against other registrations, our 12A, 80G and CSR registration service covers the income-tax side separately.
Section 11(2): prior permission and the 2020 provisos
A person who is not registered "may accept any foreign contribution only after obtaining the prior permission of the Central Government", and the permission "shall be valid for the specific purpose for which it is obtained and from the specific source". Section 12(6) adds that it is valid for the specific purpose or specific amount proposed to be received.
The Amendment Act, 2020 (paragraph 5) changed the proviso:
| As enacted | Now |
|---|---|
| One proviso: if the person has been found guilty of violating the 2010 Act or the 1976 Act, the unutilised or unreceived amount shall not be used or received without the Central Government's prior approval | First proviso (new): on the basis of any information or report, and after a summary inquiry, if the Central Government has reason to believe a person granted prior permission has contravened the Act, it may, pending further inquiry, direct that the person shall not utilise the unutilised foreign contribution or receive the remaining or any additional contribution without its prior approval. Second proviso: the earlier rule, now applying where the person in sub-section (1) or (2) "has been found guilty" |
The new first proviso needs no finding of guilt; it works pending inquiry and is aimed at a person who holds prior permission. The first proviso is drafted as one long sentence in the Amendment Act and is summarised here, not reproduced.
Section 11(3): classes that need prior permission
"Notwithstanding anything contained in this Act", the Central Government may by notification specify the person or class of persons who must obtain prior permission, the area in which contribution may be accepted and used only with prior permission, the purposes for which it may be used only with prior permission, or the sources from which it may be accepted only with prior permission. No notification under section 11(3) is among the texts consulted and none is described here. Section 9(d) gives a separate power over persons covered by section 11(1).
Section 12 in outline: how the permission is obtained
| Provision | What it says |
|---|---|
| 12(1) | Application in the prescribed form and manner with the prescribed fee |
| 12(1A) | Applicant must open an "FCRA Account" in the manner in section 17 and mention its details in the application |
| 12(2) | Application not in the prescribed form, or lacking particulars, is rejected by order |
| 12(3) | If the conditions in 12(4) are satisfied, the Government may, ordinarily within ninety days, register the person and grant a certificate or give prior permission; if not granted in ninety days it communicates reasons; a person whose certificate stands suspended on the date of application is ineligible |
| 12(4) | Conditions: not fictitious or benami, clean record on eight points, reasonable activity (registration) or reasonable project (prior permission), no conviction or pending prosecution of the individual or any director or office-bearer, no prejudice to six public interests, no incitement of an offence or danger to life |
| 12(5) | Refusal: reasons recorded and a copy furnished, subject to a proviso linked to the Right to Information Act, 2005 |
| 12(6) | Certificate valid for five years; prior permission valid for the specific purpose or amount |
Section 12A, also inserted in 2020, lets the Central Government require, from an applicant for prior permission, registration or renewal, the Aadhaar number of all its office bearers, Directors or other key functionaries, or a copy of the passport or Overseas Citizen of India Card in the case of a foreigner. The detail of section 12 is in the article on application, grant, refusal and validity and the article on the section 12(4) conditions.
What the Rules add
Rule 9(1)(a) requires an application for registration in Form FC-3A and for prior permission in Form FC-3B, each in electronic form with an affidavit of each key functionary in Proforma 'AA'. For registration under section 12(4)(b), rule 9(1)(f) requires existence for three years and a minimum of rupees fifteen lakh spent on core activities for the benefit of society during the last three financial years, subject to a proviso that lets the Central Government waive the conditions in exceptional cases or where the person is controlled by the Central Government or a State Government. For prior permission, rule 9(2)(f) requires a specific commitment letter from the donor stating the amount and purpose, with conditions where the donor and recipient have common members. Fees under rule 9(4) are rupees ten thousand only for registration and rupees five thousand only for prior permission. See rule 9 on registration and rules 9 and 9A on prior permission.
Who therefore may receive foreign contribution
Reading sections 3, 4 and 11 together: a person within the classes in section 3(1) may not accept it except in the seven situations in section 4; any other person with a definite programme in the five heads needs registration or prior permission; and the Central Government may widen the requirement by notification. A person without such a programme, and not within section 3, is not within the registration requirement of section 11(1) on its words, although the Act's other provisions (such as the definition of foreign contribution and the powers in section 9) continue to apply. Take advice on the facts of your own programme before concluding that you are outside section 11.
Need help choosing the route?
Registration suits a continuing flow of foreign contribution; prior permission is tied to one purpose and source. Bring your constitution, your accounts for the last three financial years and the donor's letter to our legal consultation team and we will place your case against the provisions above.
Key takeaways
- A person with a definite cultural, economic, educational, religious or social programme needs registration to accept foreign contribution (section 11(1)).
- An unregistered person needs prior permission, valid for the specific purpose and source (section 11(2)).
- Since 2020 a summary inquiry can stop use or further receipt by a prior-permission holder pending inquiry.
- Section 12 sets the application, the ordinary ninety-day period, the conditions and the five-year validity.
Read next
- Section 3: who cannot accept foreign contribution
- Section 12A: Aadhaar, passport or OCI card as identification
- Section 11: registration or prior permission
- Section 9: power to prohibit receipt
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.