Rules 10 and 11 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rule 10 says a certificate granted under the Act is valid for five years from the date of its issue, and, since G.S.R. 695(E) of 10 November 2020, that a certificate surrendered under section 14A is deemed to have expired on the date the Central Government accepts the request. Rule 11 requires every registered person, or person with prior permission, to keep a separate set of accounts and records exclusively for the foreign contribution received and utilised.
This article reads rules 10 and 11 as per the Rules as amended by the notifications named in this article; the latest consulted is S.O. 3272(E) dated 22 June 2026. Rule 10(1) is read from the third-party consolidation of 17 September 2019, and rule 11 from the same copy checked against the Rules as notified on 29 April 2011; sub-rule (2) of rule 10 is from G.S.R. 695(E). Later amendments should be checked. For the accounting side, see our books of accounts and compliance service.
A certificate is valid for five years from the date of its issue (rule 10(1)). A certificate surrendered under section 14A is deemed to have expired on the date of acceptance of the request by the Central Government (rule 10(2)). Every person who has been granted registration or prior permission shall maintain a separate set of accounts and records, exclusively, for the foreign contribution received and utilised (rule 11).
Rule 10(1): five years
"Every certificate or registration granted to a person under the Act shall be valid for a period of five years from the date of its issue."
- Source in the Act. Section 12(6) says "the certificate granted under sub-section (3) shall be valid for a period of five years", and section 16(3) allows renewal "for a period of five years". See the article on section 12 and the article on section 16.
- Starting point. The period runs from the date of issue, not from the date of application.
- Prior permission. Section 12(6) makes prior permission valid for the specific purpose or specific amount of foreign contribution proposed to be received. Rule 10(1) speaks of a "certificate or registration" and does not mention prior permission.
- Slip to note. Both the consolidation consulted and the 2011 OCR print "certificate or registration", where "certificate of registration" is evidently meant. The words are quoted as printed.
Interaction with renewal
Renewal is dealt with in rule 12 (an application in Form FC-3C within six months before the date of expiry, as corrected) and section 16; see the article on rule 12. Rule 12(6) says the validity of a certificate shall be deemed to have ceased from the date of completion of the five years if no application for renewal is received or it lacks the requisite fee.
Rule 10(2): surrendered certificate
Paragraph 8 of G.S.R. 695(E) numbered rule 10 as sub-rule (1) and inserted: "The validity of certificate surrendered under section 14A of the Act shall be deemed to have expired on the date of acceptance of the request by the Central Government."
| Event | Effect on validity |
|---|---|
| Certificate runs its five years | Valid until five years from issue |
| Request to surrender made under section 14A | Not yet effective on the request alone |
| Central Government accepts the request | Validity deemed to have expired on the date of acceptance |
Section 14A (inserted by the Amendment Act, 2020) allows the Central Government, on a request, to permit surrender if after inquiry it is satisfied that the person has not contravened the Act and that the management of foreign contribution and assets has been vested under section 15(1). The rule fixes the date of expiry; the application is in Form FC-7 under rule 15A. See the article on sections 14A and 15 and the article on rules 15 and 15A.
Example (invented). The Pragati Sewa Trust applied to surrender its certificate on 1 March. The Central Government accepted the request on 20 April. Under rule 10(2) the validity of the certificate is deemed to have expired on 20 April, the date of acceptance, and not on 1 March.
Rule 11: separate accounts
"Every person who has been granted registration or prior permission under section 12 shall maintain a separate set of accounts and records, exclusively, for the foreign contribution received and utilised."
Parts of the rule:
- Who. Every person granted registration or prior permission. The rule cites "section 12", where the grant is made.
- What. "A separate set of accounts and records", which means both accounts and records.
- Exclusively. The set is for the foreign contribution received and utilised. The word "exclusively" signals that other funds are not mixed in.
Related provisions
| Provision | Link to rule 11 |
|---|---|
| Section 19 | Every person with a certificate or prior approval shall maintain, in the prescribed form and manner, an account of foreign contribution received and a record of the manner of its utilisation |
| Section 20 | Audit of books of account kept by such person after failure to furnish intimation or on reasonable cause |
| Rule 4(3) | A separate register of investments, submitted for audit |
| Rule 17(6) | The annual return in Form FC-4 is accompanied by a certified bank statement from the bank where the exclusive foreign contribution account is maintained, as the copy consulted prints it |
| Rule 13 | Audited statement of accounts on receipts and utilisation placed on the website within nine months, as the copy consulted prints it |
For section 19 and section 20 in full, see the article on sections 18 to 20. In the compounding table under section 41, serial number 7 deals with not maintaining the account and records of each foreign contribution received and its utilisation as required under section 19; see the article on section 41.
What the rule does not say
Rule 11 does not specify a format for the set of accounts, who must keep them, or how long they are preserved. The period of six years in rule 17(7), as the consolidation prints it, applies to the accounting statements referred to in rule 17. This article draws no further requirement.
Need help with the separate set of accounts?
Keeping foreign contribution entries clean and separate is the base of every return and renewal. Our books of accounts and compliance team can review your ledgers, bank accounts and utilisation records against rule 11.
Key takeaways
- A certificate is valid for five years from the date of its issue (rule 10(1)).
- A surrendered certificate is deemed to expire on the date the Central Government accepts the request (rule 10(2), added by G.S.R. 695(E)).
- Rule 11 requires a separate set of accounts and records, exclusively, for foreign contribution received and utilised.
- Rule 10(1) prints "certificate or registration"; the 2011 OCR prints the same.
- Rule 11 gives no format; section 19 and rule 17 add requirements on accounts and returns.
Read next
- Section 16: renewal of certificate
- Rule 12: renewal of certificate of registration
- Sections 14A and 15: surrender and management of foreign contribution
- Sections 18 to 20: intimation, maintenance of accounts and audit
Disclaimer: Based on the Foreign Contribution (Regulation) Act, 2010 as enacted, read with the Amendment Act, 2020 and the other amendments named in this article, and on the Foreign Contribution (Regulation) Rules, 2011 as amended by the notifications named (latest consulted: S.O. 3272(E) dated 22 June 2026), as consulted on 2 October 2026. No consolidated official text was available; some provisions rest on a third-party copy and are identified as such. Later amendments, notifications and Ministry of Home Affairs orders should be checked. This article is general information, not legal advice; check the official text before acting.