Key takeaways
- India's PC Act corporate offence (since 26 July 2018) reaches foreign companies doing business in India.
- The defence is adequate procedures — including due diligence on Indian associates.
- Home-country rules (FCPA, UK Bribery Act and others) usually apply too.
The corporate offence
- Since amendments that came into force on 26 July 2018, India’s Prevention of Corruption Act makes a commercial organisation liable if a person associated with it gives an undue advantage to a public servant to obtain or retain business for it.
- “Commercial organisation” includes companies incorporated outside India that carry on business, or part of a business, in India.
- The defence is having adequate procedures to prevent such conduct — the same concept as the UK Bribery Act.
- The Act targets bribery of public servants; purely private-sector bribery is outside its scope.
Who counts as “associated”
Anyone performing services for or on behalf of the organisation — employees, agents, distributors, consultants and JV partners can all qualify, depending on the facts. That’s why your Indian intermediaries matter.
What adequate procedures look like in India
- Risk assessment of your Indian activities — government customers, licences, customs and land approvals carry more risk.
- Due diligence on partners and background checks on promoters before appointment.
- Clear policies, training, anti-bribery clauses and audit rights in contracts.
- Controls on payments: commissions, cash, gifts and “facilitation” requests.
- Monitoring and periodic review.
Plus your home-country rules
US, UK, Australian, Japanese and European rules often apply at the same time — see our pages for US, UK, Australian & NZ, Japanese and EU & German companies.
Sources
Frequently asked questions
Does India's anti-bribery law apply to foreign companies?
Yes. Since July 2018 India's Prevention of Corruption Act makes commercial organisations — including companies incorporated outside India that carry on business in India — liable for bribery of public servants by associated persons, unless they had adequate procedures.
Is private-sector bribery illegal under India's Prevention of Corruption Act?
The Act targets bribery involving public servants; purely private commercial bribery is generally outside its scope, though other laws and contracts may apply.
What are adequate procedures under Indian anti-bribery law?
Risk assessment, due diligence on partners and intermediaries, clear policies and training, contractual anti-bribery clauses and audit rights, payment controls and monitoring.
Please note: this guide is general information based on the rules as they stood on the review date above. Regulations and RBI/CBDT procedures change often — please get advice on your specific facts before acting.