Guidelines Issued for International Collaborations by Section 8s

In a significant move to regulate and support cross-border partnerships, the Government of India has issued detailed guidelines for international collaborations by Section 8 companies. The new framework, developed jointly by the Ministry of Corporate Affairs (MCA) and the Ministry of Home Affairs (MHA), outlines the legal and procedural requirements for charitable entities seeking to engage with foreign organizations, donors, or institutions.

Under the new guidelines, Section 8 companies intending to collaborate with international partners—whether through funding, technical support, joint research, or project implementation—must obtain prior permissions wherever required, particularly if foreign contributions are involved. In such cases, registration under the Foreign Contribution Regulation Act (FCRA) is mandatory, along with compliance with reporting and utilization norms specified by the Ministry of Home Affairs.

Entities must clearly define the nature, scope, and objectives of the collaboration in formal agreements and submit disclosures to the MCA and relevant departments. Financial arrangements, especially those involving grants or service payments from overseas bodies, must be routed through designated FCRA bank accounts, and audited records must be maintained to track the inflow and expenditure of foreign funds.

The guidelines also require Section 8 firms to conduct due diligence on their foreign collaborators to ensure that the partnership does not involve any entity banned or restricted under Indian or international law. Projects involving sensitive sectors like education reform, digital governance, or community mobilization will be subject to additional scrutiny from national security and policy compliance perspectives.

Officials stated that these measures are not intended to discourage international cooperation but to institutionalize safeguards and promote transparent, accountable collaborations that align with India’s legal and developmental priorities. Non-profit leaders and global funders have welcomed the move as a necessary balance between openness and oversight, helping Section 8 companies scale their impact through ethical and well-governed global partnerships.