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CS Professional · CSR and Social Governance · Foreign Funding to Non-Corporate Entities

Bharat Textiles Ltd. is incorporated in India and has an associate branch in Singapore. The Singapore branch receives funds from a foreign source and routes them to an Indian NGO. Which statement correctly reflects the applicability of the FCRA, 2010 to the Singapore branch?

The Act applies to associate branches or subsidiaries outside India of companies or bodies corporate registered or incorporated in India. Since Bharat Textiles is Indian-incorporated, its Singapore branch is covered despite being located abroad.

  1. AThe Act applies to associate branches or subsidiaries outside India of companies or bodies corporate registered or incorporated in IndiaCorrect
  2. BThe Act does not apply because the branch is located outside India
  3. CThe Act applies only to subsidiaries and never to branches
  4. DThe Act applies only if the Singapore branch is registered as a society

Explanation

Section 1(2)(b) extends the Act to associate branches or subsidiaries, outside India, of companies or bodies corporate registered or incorporated in India. Bharat Textiles is incorporated in India, so its Singapore branch falls within the Act. Location abroad does not take it outside the scope.

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