Introduction

Disclaimer: This document is intended solely for educational purposes. The content herein is subject to change based on evolving finance trends and any relevant rulings by the Government of India. Readers are advised to consult with qualified professionals for specific guidance related to their individual circumstances.

Q.1 What is the purpose of FCRA, 2010?

FCRA, 2010 has been enacted by the Parliament to consolidate the law to regulate the acceptance and utilization of foreign contribution or foreign hospitality by certain individuals or associations or companies and to prohibit acceptance and utilization of foreign contribution or foreign hospitality for any activities detrimental to national interest and for matters connected therewith or incidental thereto.  

Q.2 What are the various acts/rules/guidelines which regulate the flow of foreign contribution to India?  

The flow of foreign contribution to India is regulated under the Foreign Contribution (Regulation) Act,2010 and the Foreign Contribution (Regulation) Rules, 2011 (FCRR 2011) read with other notifications/orders etc., as issued thereunder from time to time. These are available at the website https://fcraonline.nic.in.  

Q.3 What is the status of the FCRA, 1976 after coming into force of FCRA,2010? 

It has been repealed.  

Q.4 Who is FCRA, 2010 applicable for?  

As per Section 1(2) of FCRA, 2010, the provisions of the act shall apply to:  

• Whole of India  
• Citizens of India outside India; and  
• Associate Branches or subsidiaries, outside India, of companies or bodies corporate, registered or incorporated in India