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Economic, Commercial and Intellectual Property Laws · Law relating to Foreign Contribution Regulation

FCRA Registration, Prior Permission and Renewal Explained

Updated 11 October 2026 · Fact-checked

Under the FCRA, 2010, a person who wants to receive foreign contribution must get a certificate of registration or prior permission from the Central Government under section 12. A certificate is valid for five years and must be renewed under section 16. Prior permission is valid only for the specific purpose or amount.

Understand Registration, Prior Permission and Renewal

The FCRA regulates who may take foreign money and how. A person who is not otherwise barred cannot just accept foreign contribution. The person needs either a certificate of registration or prior permission from the Central Government. Section 12 sets out the process.

The two routes differ in purpose. Registration suits an organisation that will receive foreign contribution on a continuing basis for its chosen field of work. Prior permission suits a person who proposes to receive a specific amount for a specific purpose or project. The test under section 12(4) differs accordingly: a registration applicant must have undertaken reasonable activity in its chosen field for the benefit of society. A prior permission applicant must have prepared a reasonable project for the benefit of society.

The process runs in a fixed order. You apply to the Central Government in the prescribed form, manner and fee. Every applicant must open an FCRA Account as per section 17 and give its details in the application. If the application is not in the prescribed form or lacks a required particular, the Government must reject it. Otherwise it makes inquiry. If it is satisfied that the section 12(4) conditions are met, it may ordinarily within ninety days register the person or give prior permission, on prescribed terms.

The conditions in section 12(4) are mainly about the applicant's character and the effect of the money. The applicant must not be fictitious or benami, not been found guilty of diversion or misuse of funds, not contravened the Act, and not be likely to use funds for personal gain. Directors or office bearers must not be convicted or face pending prosecution. The contribution must not prejudice sovereignty, security, public interest, fairness of elections and similar interests.

A certificate lasts five years. Before it expires, the holder must renew it, with the application made within six months before expiry under section 16. Renewal is not automatic. The Government may inquire, and may refuse renewal where the Act or rules have been violated.

Key rules to remember

Who must apply (route)
Registration: continuing receipt, needs reasonable activity in chosen field | Prior permission: specific purpose or amount, needs reasonable project
Both are applied for under section 12(1) to the Central Government in the prescribed form, manner and fee.
Processing period
Ordinarily within 90 days of receipt of application (section 12(3))
If not granted in 90 days, the Government must communicate reasons to the applicant. The period is 'ordinarily', not a hard deadline.
Validity
Certificate: 5 years | Prior permission: specific purpose or specific amount (section 12(6))
Prior permission has no fixed term of years.
Renewal timing
Apply within 6 months before expiry of the certificate (section 16(1))
Renewal certificate is also for 5 years; ordinarily decided within 90 days (section 16(3)).
FCRA Account
Open FCRA Account (section 17) and give its details in the application (section 12(1A))
Receipt is only in the FCRA Account at the specified State Bank of India branch, New Delhi. Only foreign contribution may go into it.
Suspension bar
Not eligible if certificate is suspended and suspension continues on date of application (second proviso to section 12(3))
The bar applies while the suspension continues on the date of applying.
Reasons for refusal
Refusal order must record reasons and give a copy to the applicant (section 12(5))
Reasons need not be communicated where the Right to Information Act, 2005 imposes no obligation to give such information.
Cancellation consequence
After cancellation under section 14, ineligible for registration or prior permission for 3 years (section 14(3))
Cancellation needs a reasonable opportunity of being heard (section 14(2)).

How to solve Registration, Prior Permission and Renewal questions

Use this order for any problem or case question on FCRA registration, prior permission or renewal.

  1. 1Identify the person and what they want: continuing foreign contribution (registration) or a specific amount for a specific project (prior permission).
  2. 2State the provision: section 12 for grant, section 16 for renewal, section 14 for cancellation, section 17 for the FCRA Account.
  3. 3Check the application: right form, manner, fee, all particulars, and FCRA Account details. If not, the application is rejected under section 12(2).
  4. 4Test the facts against section 12(4): not fictitious or benami, no misuse of funds, no past contravention, clean record of directors or office bearers, no prejudice to national interests. Add the activity test (registration) or project test (prior permission).
  5. 5Check any suspension on the date of application, and any cancellation within the last three years.
  6. 6Apply the timeline: ordinarily 90 days; for renewal, apply within six months before expiry; validity five years or specific purpose.
  7. 7Conclude clearly: whether the Government may grant, must reject, may refuse renewal, or must give reasons.

Quickest way: Route, condition, clock

When to use it: Use this for short-answer questions or when you have only a few minutes for a case.

  1. Route: registration (continuing, activity) or prior permission (specific, project).
  2. Condition: scan section 12(4) for the fact that fails, such as a pending prosecution against an office bearer or misuse of funds.
  3. Clock: 90 days to decide, 5 years validity, renewal within the 6 months before expiry.
  4. Write the conclusion in one line with the section number.

Common mistakes in Registration, Prior Permission and Renewal

  • Saying prior permission is valid for five years.

    Students merge it with the registration certificate, which does have a five-year validity.

    Fix: Remember section 12(6): the certificate is valid for five years, while prior permission is valid only for the specific purpose or specific amount.

  • Treating the 90-day period as a deadline after which the application is deemed granted.

    The number 90 is remembered but the word 'ordinarily' is missed.

    Fix: Write that the Government may ordinarily decide within 90 days, and if it does not, it must communicate reasons. There is no deemed grant in the text.

  • Mixing up the activity test and the project test.

    Clauses (b) and (c) of section 12(4) look alike.

    Fix: Registration applicant: reasonable activity in chosen field. Prior permission applicant: reasonable project. Match the test to the route.

  • Stating renewal can be applied for any time or after expiry.

    Students think of renewal as a late formality.

    Fix: Section 16(1) requires renewal within six months before expiry of the certificate. Say the application must be made in that window.

  • Forgetting the FCRA Account in the application.

    Students focus only on section 12(4) conditions.

    Fix: Cite section 12(1A): the applicant must open an FCRA Account as per section 17 and mention its details. Add that only foreign contribution may be kept in it.

  • Writing that the Government must renew a certificate if the application is made in time.

    Renewal is assumed to be a routine step.

    Fix: The Government may inquire under the proviso to section 16(1) and may refuse renewal where the Act or rules were violated (section 16(3)).

Worked examples

Example 1

Shanti Seva Trust, a Pune charity, has run rural health camps for six years. It now wishes to receive foreign contribution regularly from a donor abroad. Advise on the legal route and the conditions the Central Government will examine.

Show the solution
  1. Provision: under the FCRA, 2010, a person who wants to receive foreign contribution needs a certificate of registration or prior permission from the Central Government under section 12.
  2. Route: the Trust wants to receive contributions regularly, not for one project. The suitable route is a certificate of registration.
  3. Application: it must apply to the Central Government in the prescribed form and manner with the prescribed fee (section 12(1)). It must also open an FCRA Account per section 17 and give its details (section 12(1A)). If the form or particulars are incomplete, the application is rejected (section 12(2)).
  4. Conditions: the Government will see that the Trust is not fictitious or benami, has not misused funds or contravened the Act, and that its office bearers are not convicted or facing pending prosecution. It must also have undertaken reasonable activity in its chosen field. Six years of health camps supports this. The contribution must not prejudice interests such as public interest or security of the State (section 12(4)).
  5. Timeline and validity: the Government may ordinarily decide within ninety days. If it does not, it must communicate reasons. The certificate will be valid for five years (section 12(6)).

Answer: The Trust should apply for a certificate of registration under section 12. If the section 12(4) conditions are satisfied, the Central Government may grant it ordinarily within ninety days, valid for five years, and the Trust must receive contributions only in its FCRA Account.

Example 2

Navjeevan Society holds an FCRA certificate granted on 1 April 2022. Its certificate is valid for five years. By when must it apply for renewal, and can the Central Government refuse renewal? Answer with reference to the Act.

Show the solution
  1. Provision: section 16 deals with renewal of a certificate granted under section 12.
  2. Validity: under section 12(6), the certificate is valid for five years. Granted on 1 April 2022, it expires at the end of the five-year period, around 31 March 2027.
  3. Timing: section 16(1) requires renewal within six months before the expiry of the certificate. So the Society must apply in the six months preceding expiry, that is, from about 1 October 2026 to about 31 March 2027.
  4. Application: it is made to the Central Government in the prescribed form and manner with the prescribed fee (section 16(2)).
  5. Government's power: the Government may inquire to check that the section 12(4) conditions are met. It ordinarily decides within ninety days and, if it does not, must communicate reasons. It may refuse renewal if the person has violated the Act or rules (section 16(3)).
  6. Renewed term: a renewal certificate is granted for five years.

Answer: Navjeevan Society must apply within the six months before its certificate expires, roughly between 1 October 2026 and 31 March 2027. The Central Government may refuse renewal if the Society has violated any provision of the Act or the rules.

Exam tips

  • Write the section number with every point: 12 for grant, 14 for cancellation, 16 for renewal, 17 for the FCRA Account.
  • For a registration versus prior permission question, make a two-column comparison on purpose, test applied and validity. This is easy to mark.
  • Use the Act's own words: 'ordinarily within ninety days', 'reasonable activity', 'reasonable project'. Examiners look for these.
  • In case questions, point out the specific fact that fails a section 12(4) condition, then conclude on grant, rejection or refusal.
  • Mention the FCRA Account and the three-year bar after cancellation where relevant, since students often omit them.

Practice questions from Law relating to Foreign Contribution Regulation

Registration, Prior Permission and Renewal: frequently asked questions

What is the difference between FCRA registration and prior permission?

Registration is a certificate for continuing receipt of foreign contribution, and it requires reasonable activity in the chosen field. Prior permission is for a specific purpose or amount, and it requires a reasonable project. The certificate is valid for five years, while prior permission is valid only for that purpose or amount.

How long does the Government take to grant FCRA registration?

Under section 12(3), the Government may ordinarily register the person within ninety days of receiving the application. If it does not grant the certificate within that period, it must communicate the reasons to the applicant.

When should an FCRA certificate be renewed?

Under section 16(1), the certificate must be renewed within six months before its expiry. The application goes to the Central Government in the prescribed form and manner with the prescribed fee. The renewed certificate is for five years.

Can an applicant with a suspended certificate apply again?

No, not while the suspension continues. The second proviso to section 12(3) says a person is not eligible if the certificate is suspended and the suspension continues on the date of making the application.

Why must an applicant open an FCRA Account?

Section 12(1A) requires every applicant to open an FCRA Account as per section 17 and mention its details in the application. Under section 17, foreign contribution must be received only in that account, and no other funds may be deposited in it.