Civil Law

Section 8 Company Limited by Guarantee: An Alternative to Traditional Section 8 for FEMA & FCRA Issues Faced by Foreign Owned and Controlled Entities

Section 8 Company Limited by Guarantee: An Alternative to Traditional Section 8 for FEMA & FCRA Issues Faced by Foreign Owned and Controlled Entities

Summary: The blog discusses the progressive shift in the implementation of CSR activities by foreign-owned and controlled entities, and how a Section 8 company limited by guarantee can serve as an alternative to the challenges faced by traditional Section 8 companies under the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019, and the Foreign Contribution (Regulation) Act, 2010.

Introduction

Corporate social responsibility (“CSR”) has evolved from a voluntary philanthropic activity to a mandatory legal requirement under the Companies Act, … Read the rest

Civil Law

FCRA Compliance Tightened-Understanding the May 2025 Amendments to FCR Rules

Introduction

The Foreign Contribution (Regulation) Act, 2010 (“FCRA”)[i], regulates the flow and use of foreign funds by individuals, associations, and organisations in India. Over time, the regulatory framework under FCRA has evolved, introducing several compliance obligations for entities receiving foreign contributions. In April 2025[ii], a key amendment was introduced concerning the validity of prior permissions. To strengthen the FCRA regime further, the Ministry of Home Affairs (“MHA”) notified amendments to the Foreign Contribution (Regulation) Rules, 2011 … Read the rest