Foreign Contribution (Regulation) Act, 2010
No: 42 Dated: Sep, 26 2010
THE FOREIGN CONTRIBUTION (REGULATION) ACT, 2010
ACT NO. 42 OF 2010
An Act to consolidate the law to regulate the acceptance and utilisation of foreign contribution or foreign hospitality by certain individuals or associations or companies and to prohibit acceptance and utilisation of foreign contribution or foreign hospitality for any activities detrimental to the national interest and for matters connected therewith or incidental thereto.
BE it enacted by Parliament in the Sixty-first Year of the Republic of India as follows:—
CHAPTER I
PRELIMINARY
1. Short title, extent, application and commencement.—(1) This Act may be called the Foreign Contribution (Regulation) Act, 2010.
(2) It extends to the whole of India, and it shall also apply to—
(a) citizens of India outside India; and
(b) associate branches or subsidiaries, outside India, of companies or bodies corporate, registered or incorporated in India.
(3) It shall come into force on such date1 as the Central Government may, by notification in the Official Gazette, appoint:
Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.
2. Definitions.—(1) In this Act, unless the context otherwise requires,—
(a) “association” means an association of individuals, whether incorporated or not, having an office in India and includes a society, whether registered under the Societies Registration Act, 1860 (21 of 1860), or not, and any other organisation, by whatever name called;
(b) “authorised person in foreign exchange” means an authorised person referred to in clause (c) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999);
(c) “bank” means a banking company as referred to in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949);
(d) “candidate for election” means a person who has been duly nominated as a candidate for election to any Legislature;
(e) “certificate” means certificate of registration granted under sub-section (3) of section 12;
(f) “company” shall have the meaning assigned to it under clause (17) of section 2 of the Income-tax Act, 1961 (43 of 1961);
(g) “foreign company” means any company or association or body of individuals incorporated outside India and includes—
(i) a foreign company within the meaning of section 591 of the Companies Act, 1956 (1 of 1956);
(ii) a company which is a subsidiary of a foreign company;
(iii) the registered office or principal place of business of a foreign company referred to in sub-clause (i) or company referred to in sub-clause (ii);
(iv) a multi-national corporation.
Explanation.—For the purposes of this sub-clause, a corporation incorporated in a foreign country or territory shall be deemed to be a multi-national corporation if such corporation,—
(a) has a subsidiary or a branch or a place of business in two or more countries or territories; or
(b) carries on business, or otherwise operates, in two or more countries or territories;