How is a political party registered?
A political party is registered with the Election Commission of India under section 29A of the Representation of the People Act, 1951. The application is made within 30 days of the party’s formation. The party is not incorporated under the Companies Act.
Where is the application made?
The association or body of individual citizens applies to the Election Commission. The application includes a copy of the memorandum or the rules and regulations. Those rules contain a specific provision that the party bears true faith and allegiance to the Constitution of India, to the principles of socialism, secularism, and democracy, and that it will uphold the sovereignty, unity, and integrity of India. The Commission may ask for further particulars. Internal elections, where the party holds them, are a matter of those rules. They are not board meetings under section 173.
Is a party a section 8 company?
No. A section 8 company is formed for the objects that section names, such as commerce, art, science, education, social welfare, or charity. Registration with the Registrar of Companies does not register a political party. A party that wants the Commission’s registration uses section 29A.
Can a company contribute?
Section 182 allows a company to contribute any amount to a political party if the company is not a government company and has been in existence for at least three financial years. The board authorises the contribution by a resolution. The payment is made by an account-payee cheque, an account-payee bank draft, or the electronic clearing system through a bank account. The company discloses the contribution in its profit and loss account. The 7.5 percent cap on average net profits is not the current section. An electoral bond is not a current mode of payment. The Supreme Court held that scheme unconstitutional on 15 February 2024.
Can the party take a foreign contribution?
No. Section 3 of the Foreign Contribution (Regulation) Act bars a political party from accepting a foreign contribution. An office-bearer of a political party is in the same bar. What that Act allows a different person to transfer is on the foreign-contribution page. A disclosure of Indian company contributions under section 182 does not lift the foreign-contribution bar.
Frequently asked questions
Four questions cover a section 8 company, the 30 days, a new company, and an electoral bond.
Is a political party a section 8 company?
No. A political party registers with the Election Commission under section 29A. A section 8 company is a different registration, for the objects that section allows.
Is there a 30-day limit?
Yes. Section 29A requires the application within 30 days of the formation of the association or body.
Can a new company contribute in its first year?
No. Section 182 requires the company to have been in existence for at least three financial years. A government company cannot contribute.
Can the contribution be made by an electoral bond?
No. The Supreme Court held the electoral bond scheme unconstitutional on 15 February 2024. A permitted contribution is made by an account-payee cheque, an account-payee bank draft, or the electronic clearing system through a bank account.
Sources
Registration of a political party is section 29A of the Representation of the People Act, 1951. A company’s contribution is section 182 of the Companies Act, 2013. A foreign contribution to a political party is barred by the Foreign Contribution (Regulation) Act, 2010.