The Office Display Requirement
Section 382(a) requires every foreign company to conspicuously exhibit on the outside of every office or place where it carries on business in India the name of the company and the country in which it is incorporated, in easily legible English characters. The display must be at the office itself, not only on the website or in correspondence.
The Prospectus Disclosure
Section 382(b) requires every prospectus inviting subscriptions in India for the foreign company’s shares or debentures to state the country in which the company is incorporated. The disclosure is a investor-protection requirement; a prospectus that omits the country of incorporation is defective.
The Language Requirement
The display must be in English characters and, where the office is in a locality with a predominant local language, in that language as well. The requirement is cumulative: the English display does not dispense with the local-language display where applicable.
The Enforcement Risk
A foreign company that operates a branch or liaison office without the required display is in contravention of Section 382. The penalty is adjudicated by the ROC, and the contravention may be cited in a broader compliance review. The company should include the display verification in its Indian office audit checklist.
Documentation
The file should contain: photographs of the office display; the office lease or licence; the prospectus with the country disclosure; and the compliance audit report. A foreign company that cannot evidence the display has an enforcement gap.
Call to Action: For foreign company display compliance review or office audit support, contact office@anujdesaiassociates.com or 9619456656. Website: https://anujdesaiassociates.com. LinkedIn: linkedin.com/in/ca-anuj-desai-122547230.