The Basics: What is FCRA?
The FCRA full form is the Foreign Contribution (Regulation) Act, a law enacted in 2010 to regulate foreign donations received by individuals, associations, and non-profit organizations in India. The primary objective of the FCRA Act 2010 is to ensure that foreign contributions do not affect national interest or internal security and are used only for legitimate and approved purposes.
If your NGO, trust, or Section 8 company has been receiving foreign funds, it is likely registered under this Act. But what if your organization no longer wishes to receive such contributions? In such cases, you may cancel your FCRA Registration legally through a proper procedure.
Why Would an NGO Want to Cancel FCRA Registration?
There are various reasons why an organization might consider cancelling its FCRA Registration:
• Discontinuation of foreign funding
• Merger with another NGO not holding FCRA registration
• Change in organization objectives
• Desire to operate only with domestic funds
• Compliance concerns or administrative limitations
Whatever the reason, the cancellation must be made legally and in accordance with the provisions under the FCRA Act.
Legal Procedure to Cancel FCRA Registration
Cancelling FCRA Registration involves a few essential steps through FCRA Online Services, as it’s a government-regulated process. Here’s a detailed step-by-step guide:
Step 1: Board Resolution
The NGO must first pass a board resolution stating its intention to cancel the FCRA registration and discontinue accepting foreign contributions.
Step 2: Application to MHA
Prepare an application addressed to the Secretary, Ministry of Home Affairs (FCRA Division) stating the request for cancellation of registration. It should clearly mention:
• The reason for cancellation
• That no further foreign funds will be accepted
• That existing funds have been legally utilized
Step 3: Documentation
Along with the application, attach:
• A copy of the FCRA Registration Certificate
• The latest audited financial statements
• Details of the FCRA-designated bank account
• Declaration of no pending liabilities
• Copy of board resolution
Step 4: Submission via FCRA Online
Log in to the FCRA Online Portal and upload the request under the respective cancellation option or send it by post if online services do not offer a cancellation option. It’s advisable to also email the signed PDF to the FCRA department.
What Happens After Cancellation?
Once your FCRA registration is cancelled:
• You are no longer allowed to receive foreign contributions
• Any unutilized funds must be surrendered or returned as per MHA directives
• You must maintain records of past contributions for a minimum of 6 years
• You may still need to file a final FC-4 return disclosing how all funds were used
Voluntary vs. Government-Initiated Cancellation
It’s important to distinguish between:
• Voluntary Cancellation: Initiated by the NGO when foreign funds are no longer required.
• Government-Initiated Cancellation: Occurs when the MHA cancels registration due to:
-Violation of the FCRA Act
-Misuse of foreign funds
-Non-compliance with renewal or annual filings
-Reports from enforcement or intelligence agencies
Checking FCRA Renewal Status Post-Cancellation
After filing for cancellation, you can track your FCRA Renewal Status or cancellation status via:
• Logging in to FCRA Online
• Using the Track Application Status feature with your registration number
It’s to maintain proof of submission and any acknowledgment received from the Ministry of Home Affairs.
Points to Consider Before Cancelling FCRA Registration
• Ensure all foreign funds are fully utilized and accounted for
• File all previous returns and maintain clean FCRA compliance history
• Make a record of all documents submitted for legal safety
• Keep the MHA updated on the usage and closure of the FCRA bank account
What If You Change Your Mind?
If your organization later decides to reapply for FCRA Registration, it must follow the entire fresh registration process. Previous registration details may be reviewed, and any past violations could affect the new application.
Conclusion
Cancelling FCRA Registration is a legal right, but it should be done with full transparency and adherence to the FCRA Act 2010. Whether you’re streamlining your operations, shifting to domestic funding, or restructuring your organization, the use of FCRA Online Services simplifies the cancellation process. Maintain proper documentation, file all returns, and ensure compliance until the very end. Doing so not only closes your FCRA chapter responsibly but also safeguards your NGO’s credibility for the future.
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