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March 15, 2020

Process of prior approval of Foreign Hospitality and documents required under Foreign Contribution Regulation Act 2010

by facelesscompliance in Corporate Law

What is foreign hospitality?

Foreign Hospitality means any offer, not being a purely casual one, made in cash or kind by a foreign source for providing a person with the costs of travel to any foreign country or territory or with free board, lodging, transport or medical treatment.

Who requires prior approval from Ministry of Home Affairs before accepting Foreign Hospitality?

The following categories of persons require prior approval from Ministry of Home Affairs before accepting Foreign Hospitality:-

1) Members of a Legislature

2) office bearers of political parties

3) Judges

4) Government servants

5) Employees of any corporation or any other body owned or controlled by the Government.

Provided that it shall not be necessary to obtain any such permission for an emergent medical aide needed on account of sudden illness contracted during a visit outside India.But, where such foreign hospitality has been received, the person receiving such hospitality shall give an intimation to the Central Government as to the receipt of such hospitality within one month from the date of receipt of such hospitality, and the source from which, and the manner in which, such hospitality was received.

Whether approval of the Ministry of Home Affairs is required in cases where the proposed foreign visit is being undertaken by a person in his/her personal capacity and the entire expenditure thereon is being met by the person concerned?


How one can seek permission of the Government for receiving foreign hospitality. Which is the relevant form?

The applicant should submit application in Form FC-2 online.

What documents are to be uploaded with FC-2 form for seeking prior permission for Foreign Hospitality?

Following documents are to be uploaded with FC-2 form (as mentioned under Rule 7 of FCRR, 2011):-

1) Signature of the applicant (maximum 50 KB allowed in JPG/ JPEG format)

2) An invitation letter from the host or the host country, as the case may be (maximum 1 MB allowed in PDF format)

3) Administrative clearance of the Ministry or department concerned in case of visits sponsored by a Ministry or department of the Government (maximum 1 MB allowed in PDF format).

When should the application for filing the FC-2 form be filled?

The application for grant of permission to accept foreign hospitality should be filed online ordinarily two weeks before the proposed date of onward journey. In case of emergent medical aid needed on account of sudden illness during a visit abroad, the acceptance of foreign hospitality shall be required to be intimated to the Central Government within sixty days of such receipt giving full details including the source, approximate value in Indian Rupees, and the purpose for which and the manner in which it was utilized. Provided that no such intimation is required if the value of such hospitality in emergent medical aid is up to one lakh rupees or equivalent thereto.

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