FCRA Compliance — Guides, Updates & Practical Insights

Section 1 of the Foreign Contribution (Regulation) Act, 2010: short title, extent, application and commencement

Section 1(2) says the Act extends to the whole of India and also applies to citizens of India outside India and to associate branches or subsidiaries, outside India, of companies or bodies corporate registered or incorporated in India. Section 1(3) lets the Central Government appoint the date of...

Section 2 of the Foreign Contribution (Regulation) Act, 2010: foreign contribution and foreign hospitality defined

"Foreign contribution" is the donation, delivery or transfer, made by a foreign source, of an article, of currency (Indian or foreign) or of a security. A second recipient who got it from a foreign source is covered, interest and other income earned on it are also foreign contribution, and fees or...

Section 2 of the Foreign Contribution (Regulation) Act, 2010: foreign source and foreign company defined

A "foreign source" includes foreign Governments and their agencies, most international agencies, foreign companies, foreign corporations, multi-national corporations, a company in which more than one-half of the nominal value of share capital is held by foreign holders, foreign trade unions...

Section 2 of the Foreign Contribution (Regulation) Act, 2010: person, association, political party, Legislature and the other terms

An "association" is an association of individuals, incorporated or not, having an office in India, and includes a society whether registered or not. A "person" includes an individual, a Hindu undivided family, an association and a company registered under section 25 of the Companies Act, 1956. A...

Section 3 of the Foreign Contribution (Regulation) Act, 2010: who cannot accept foreign contribution

No foreign contribution may be accepted by a candidate for election, a registered newspaper's correspondent, columnist, cartoonist, editor, owner, printer or publisher, a public servant, Judge, Government servant or employee of a body controlled or owned by the Government, a member of any...

Section 4 of the Foreign Contribution (Regulation) Act, 2010: persons to whom section 3 does not apply

Section 3 does not apply to a person specified in it where the contribution is accepted (a) as salary, wages or other remuneration, or as payment in the ordinary course of business by a foreign source, (b) in international trade or commerce, (c) as agent of a foreign source dealing with Government...

Section 5 of the Foreign Contribution (Regulation) Act, 2010: how an organisation of a political nature is notified

The Central Government may, by an order published in the Official Gazette, specify an organisation as one of a political nature, not being a political party. It must first give a written notice of the ground or grounds; the organisation has thirty days to make a representation, and the order must...

Section 6 of the Foreign Contribution (Regulation) Act, 2010: foreign hospitality needs prior permission

No member of a Legislature, office-bearer of a political party, Judge, Government servant or employee of a corporation or other body owned or controlled by the Government may, while visiting any country or territory outside India, accept foreign hospitality except with the prior permission of the...

Section 7 of the Foreign Contribution (Regulation) Act, 2010: foreign contribution not to be transferred to another person

No person who is registered and granted a certificate or has obtained prior permission under the Act, and receives any foreign contribution, shall transfer such foreign contribution to any other person. The enacted section allowed a transfer to another registered person, and, with the Central...