Renewal Procedure of FCRA Registration

Sonal Pruthi

15 Jan, 2021

It is a compulsory registration for the Section 8 Companies, Trust or Non-governmental organizations. In order to get a donation from foreign entities, one has to get registered under the FCRA. The foreign contribution regulation act (FCRA) has come in 2010. The purpose of bringing out FCRA was to keep a check over the foreign donations received by these non-governmental or non-profit organizations registered under section 8 of the Companies Act. In this article, we are explaining the Renewal Procedure of FCRA Registration.

History

The old FCRA Act has been repealed, and a new Act has been brought, that is, Foreign Contributions (Regulation) Act, 2010^[1]. The Act has come into effect from 1^st May 2011. The Act brought significant change, that is, renewal of the registration of the Certificate after every five years. This act has been further amended in 2020.

Old Act, 1976 v/s New Act

1. Section 11 – the entities registered under the New Act shall continue to be recorded in the New Act of FCRA. The registration will now be renewed after every five years. This means the registration shall be valid for five years for the organizations registered as NGO/Trust.
2. The New Act came up on 1^ST May 2011, and the five year period ends on 30^th April 2016; the new registration will be done 1^st May 2016. The registration will be valid after the coming of the new Act is valid for 5 years.
3. Section 16(1) – The new Act clarifies that after every individual receiving the Certificate of incorporation, shall have to renew their Certificate of registration within six months, before the expiry of the period of Certificate of registration.
4. As per the Rule of 12(2), the new FCRA Rules of 2011, clarifies that the renewal of Certificate of registration shall be done to the Central Government shall be done within six months before the expiry of the period of Certificate of registration.
5.  Those registered in the old FCRA 1976 shall apply for registration on or before 31st October 2015 as their registration getting expired on 30th April 2016.
6. As per the new rules, Rule 12(2) of 2011, a person implementing an outgoing multi-layered project has to apply for the renewal of the expiry of Certificate of Registration 12 months before expiring Certificate of registration.

Multi-Layer Project

A multi-layer project is a project, program, or activity which is not limited to a financial year; it is limited to the professionals of that organization. The regular activities carried out by any organization is a multi-layer project. This means the organizations registered under the multi-layer scheme also has to get registered under the FCRA, 2011; that is, the renewal of registration has to be done after every five years. If they are conducting regular activities on or before 30^th April 2015, they have to again apply after 5 years for the registration if they are registered under the FCRA 1976.

Fees

1. The application for the registration shall be made under Form FC-5 and an amount of Rs.500 has to be paid as a renewal fees.
2. If no application is made or no requisite fees has been paid/ accompanied, then the validity of the Certificate of registration ceases at the end of the five years.
3. In this case the new application has to be made after, if it is a new organization, applying for the registration, in the Form FC-3.
4. If there are sufficient grounds to explain why, for not submitting the renewal within the stipulated time, the application can be accepted within four months after the expiry of Certificate of registration.
5. For Verification and process of renewal, the information provided in the registration certificate should only be communicated.
6. If any should have been communicated, and if the same is not informed, it should be displayed at the earliest before the renewal application is made, with a request to condone the delay. Preferably, a covering letter must be attached to the Form FC-5 informing those changes made since registration.  

The procedure of FCRA registration renewal

Here is the comprehensive process that’ll allow the holder to renew their registration:

1. Login to the FCRA website.
2. One must create a login ID. Login without the ID if there are old registration details with you.
3. Use the FC-3C form; it is the FCRA registration renewal form.
4. Filling of the form is required, and upload the required documents:

• Give the Signature of the head of the applying organization.
• Apply Seal of the concerned organization.
• Give Registration certificate (RC) of the organization.
• MOA-Memorandum of Association of the applying/concerned organization.
• Give the FCRA registration certificate, which has to be renewed.
• Give the audited financial statement of the applying organization.

5. One must submit the application and pay the prescribed fee.
6. An application number will be generated. Use this number for the FCRA renewal application status to be checked.
7. The applicant must conduct an FCRA registration renewal status inquiry regularly. If the applications status is rejected, one must rectify the details.

Read our article:How to get FCRA Registration in India

How much fee to be sent with the application for renewal

 The application which has been made for renewal of the Certificate of registration shall be include fees of Five Hundred.

The fees for the renewal of the Certificate of registration shall be given in  a  demand draft or banker’s cheque in favor of the “Pay and Accounts Officer, Ministry of Home Affairs,” payable at New Delhi.

Conclusion

Read our article:FCRA Amendment Bill 2020- Key Developments