A foreign company that establishes a place of business in India must comply with Sections 379 to 385 of the Companies Act, 2013. The compliance is not optional, and the failure to register the place of business is an offence that attracts penalty on the foreign company and the authorised person in India.
The Registration
The foreign company must deliver to the ROC, within thirty days of the establishment of the place of business, a certified copy of the charter or the memorandum and articles, the full address of the registered office, the list of the directors and the secretary, the name and address of the authorised person in India, and the principal place of business in India. The documents are filed in Form FC-1.
The Accounts
The foreign company must file with the ROC, within six months of the close of the financial year, a copy of the balance sheet and the profit and loss account, the list of the places of business in India, and the documents relating to the Indian business. The accounts must be audited by a chartered accountant, and the audit report must be filed.
The Display and the Charges
The foreign company must display its name and the name of the country of incorporation at the place of business, and it must disclose the name and address of the authorised person in India. The foreign company must also register the charges created on its Indian assets and comply with the provisions relating to the debentures and the fees.
The Compliance Calendar
The foreign company must maintain a compliance calendar that covers the FC-1 filing, the annual accounts, the charge registrations, and the other statutory returns. The failure to comply can result in the penalty, the prosecution of the authorised person, and the disruption of the Indian operations.
Call to Action
Anuj Desai & Associates advises foreign companies on the Section 379 registration and compliance—from the FC-1 filing and the annual accounts to the display requirements and the charges. If your foreign company has an Indian place of business, we can help you comply with the Act.
📧 office@anujdesaiassociates.com
📞 9619456656
🌐 https://anujdesaiassociates.com
🔗 linkedin.com/in/ca-anuj-desai-122547230
Article 210