Prachi Singhadded a note a month ago
FCRA Registration: Validity and Renewal Process
The Foreign Contribution Regulation Act (FCRA) governs how Non-Governmental Organizations (NGOs) and other non-profits in India receive and utilize funds from foreign sources. With rising concerns about the transparency of foreign funding, the Indian government mandates FCRA registration to monitor and regulate these contributions.
If your NGO or trust receives donations or grants from international donors, having valid FCRA Registration is non-negotiable. Not only is it a legal requirement, but it also helps establish credibility among foreign contributors.
What is FCRA Registration?
FCRA Registration is a certification provided by the Ministry of Home Affairs (MHA), Government of India, which allows eligible NGOs to legally receive foreign contributions.
There are two types of registrations under FCRA:
1. Permanent Registration – Issued to organizations that have been functioning for at least 3 years and have shown legitimate charitable activities.
2. Prior Permission – Granted to organizations that are newly established or have not completed 3 years of operation.
Validity of FCRA Registration
Initial Validity Period
•As per recent amendments, all FCRA registrations granted after September 2020 are valid for a period of 5 years.
•This validity applies to both new registrations and renewals.
When Does the Validity Begin?
•The 5-year validity period starts from the date of issue of the registration certificate.
•It's crucial for organizations to maintain compliance throughout this period to avoid cancellation or suspension.
Importance of Renewal
If your FCRA registration is nearing expiration, you must apply for renewal to continue receiving foreign contributions. Failing to renew on time can result in:
•Suspension or cancellation of FCRA license
•Freezing of foreign contribution bank account
•Legal penalties and inquiry from the Ministry of Home Affairs
FCRA Renewal Process
Renewal is mandatory and must be done 6 months before the date of expiry of the existing registration.
Step-by-Step Guide to FCRA Renewal
1. Visit the FCRA Online Services Portal:
2. Login to Your Account: Use your FCRA ID and password to log into the dashboard.
3. Choose Form FC-3C: This form is used for renewal applications under FCRA.
4. Fill in the Details: Enter details such as:
-Organization name and registration number
-Bank account details (dedicated FCRA account)
-Past activity reports and audited statements
5. Upload Required Documents:
-Annual reports for the past 3 years
-Audit reports
-Details of key functionaries (trustees, directors, etc.)
-Affidavit/declaration for renewal
6. Payment of Fees:
-The government fee for FCRA renewal is ₹5,000.
-Payment can be made online via net banking or debit/credit card.
7. Submit Application: After reviewing all the details and documents, submit the application.
Conclusion
Maintaining an active and valid FCRA Registration is essential for NGOs in India that rely on international funding. With a 5-year validity period and a strict compliance framework, it's crucial to be proactive about your FCRA renewal process.
By staying compliant, submitting timely returns, and initiating your renewal well before the deadline, you can avoid unnecessary disruptions and continue working toward your organization's social mission with the support of global donors.
For further guidance, visit the official FCRA Portal or consult a legal advisor experienced in NGO compliance. For more infoemation click the link below: