Foreign contribution regulation act (FCRA) 2010 Renewal and suspension

by varun · Published November 24, 2020 · Updated December 24, 2021

foreign contribution regulation act

In previous article on FCRA, We have discussed application procedure and documents required for FCRA regulations. Foreign contribution regulation act 2010 is an act of parliament and is applicable for every firm or trsut operating within India. FCRA registration number is a mandatory requirement to receive any fund or grant from a foreign contributor.

In this article, we would discuss NON eligible entities for FCRA registration, Renewal for FCRA registration and Cancellation of FCRA registration number.

Non eligible entities under FCRA rules/FCRA regulations

Following entities are not eligible for FCRA registration certificate-

Benami or fictitious applicant.
Applicant who has been prosecuted for any illegal activity.
An applicant who has been prosecuted for spreading communal disharmony within India.
Engaged in violence.
Has used foreign contributions for personal use and not for intentioned purpose.
Grant that will endanger sovereignty of India in any way.

FCRA regulations under foreign contribution regulation act 2010 prohibits any applicant to get a FCRA registration certificate who is involved in any of the above mentioned activities.

FCRA (foreign contribution regulation act) registration number renewal

FCRA registration number remains valid for a period of 5 years. As per FCRA rules, FCRA registration number can be renewed on FCRA website by following below mentioned timelines-

FCRA registration number should be renewed at least 6 months before expiry date.
If a entity is operating on a multi year project. Then, FCRA rules mandates FCRA registration number to be renewed at least 12 months before expiry date.

Cancellation of FCRA registration number

Foreign contribution regulation act (FCRA) gives powers to authorities in case of non compliance. Under FCRA regulations, authorities can cancel or suspend FCRA registration number of a entity by giving it a advance notice. Few reasons that can lead to cancellation of FCRA registration number are –

NGO doesn’t comply with provisions of Foreign contribution regulation act.
FCRA registered entity doesn’t fill annual returns or fill returns after due date.
If entity is found out be involved in any illegal entity or activity that endangers sovereignty of India. FCRA registration number of such entity can be cancelled by authorities if allegations are found to be true.
Contribution received is not utilized for the attainment of the main objective of entity. Contribution received is used for personal use and not those mentioned during application for FCRA registration number.

In this article we have discussed NON eligible entities for FCRA registration, Renewal for FCRA registration and Cancellation of FCRA registration number. It is very important for a entity to not indulge in anything that can result in cancellation of FCRA registration number under foreign contribution regulation act. For further reading on different types of trade licenses required in India, you can visit our website’s other section.