Company Incorporation


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  • A 'person', as defined in Section 2(1) (m) with the exclusion of those mentioned in Section 3 of FCRA, 2010, having a definite cultural, economic, educational, religious or social program can receive foreign contribution after it obtains the prior permission of the Central Government, or gets itself registered with the Central Government.

Explanation 3 of section 2(h) of FCRA, 2010, the following is not covered in the definition of foreign contribution:

"Any amount received, by any person from any foreign source in India, by way of fee (including fees charged by an educational institution in India from foreign student) or towards the cost in lieu of goods or services rendered by such person in the ordinary course of his business, trade or commerce whether within India or outside India or any contribution received from an agent of a foreign source towards such fee or cost shall be excluded from the definition of foreign contribution within the meaning of this clause."


As defined in Section 3(1) of FCRA, 2010, foreign contribution cannot be accepted by any:

  • a candidate for election;
  • correspondent, columnist, cartoonist, editor, owner, printer or publisher of a registered newspaper;
  • Judge, government servant or employee of any Corporation or any other body controlled on owned by the Government;
  • member of any legislature;
  • political party or office bearer thereof;
  • Organization of a political nature as may be specified under sub- section (1) of Section 5 by the Central Government.
  • association or company engaged in the production or broadcast of audio news or audio visuals or current affairs programs through any electronic mode, or any other electronic form as defined in clause (r) of sub-section (i) of Section 2 of the Information Technology Act, 2000 or any other mode of mass communication;
  • Correspondent or communist, cartoonist, editor, owner of the association or company referred to in clause (g).

    Explanation - In clause (c) and section 6, the expression "corporation' means a corporation owned or controlled by the Government and includes a Government company as defined in section 617 of the Companies Act, 1956. (i) Individuals or associations who have been prohibited from receiving foreign contribution.

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