Foreign Company

In FCRA there is no limit on donation................

So the 5% of average net profit under Companies Act 1956 is not applicable?

Does any provision of FCRA mandate so?

Dear,

That provision is for Indian Company.

Foreign companies are not required to follow the same as per my prospective......

So in case any foreign company wanna donate in India, it can without any limit do it.

The receiver in turn should be registered under FCRA and have to get a FCRA bank account opened for such FCRA funds.

What about the cases of Indian subsidiaries?

The money that the indian subsi will be transferring will not be FCRA money dear. It will have to comply with the Indian companies Act, the limit of 5% profit.

there is no Foreign contribution in that case and hence NO FCRA applicability arises.

Would that mean a foreign company could donate 100% of their earnings towards a charitable institute?

'Foreign Company' means a company registered outside India and governed by their local laws.If their local law allow to donate 100 % to an Indian charity neither FEMA nor FCRA prohibit this payment,with due compliances to RBI/Govt..But I dont think that any law ( Comapnies Act or Exchange Regulation of that country) will allow one company to do so being a going concern

However if that company is a subsidiary of foreign company,registered in India, then its an Indian company only. that case the above 5 % criteria will be applied.If payment in foreign exchange then its limited to USD 5000 (p.a) only irespective of any limit prescribed by other Act.