A foreign company that establishes a place of business in India is subject to Sections 379 to 385 of the Companies Act, 2013 (“the Act”). The provisions require the foreign company to file the prescribed documents, to maintain the accounts, and to comply with the display and fee requirements.
The Documents
Section 380 requires the foreign company to 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 must be filed in Form FC-1.
The Accounts
Section 381 requires the foreign company to 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
Section 382 requires the foreign company to display its name and the name of the country of incorporation at the place of business, and to disclose the name and the address of the authorised person in India. The foreign company must also comply with the provisions relating to the charges, the debentures, and the fees.
The Penalty
The failure to comply with the provisions is an offence. The foreign company and the authorised person are liable to penalty, and the ROC may initiate prosecution. The foreign company is also subject to the provisions relating to the service of documents and the legal proceedings.
Call to Action
Anuj Desai & Associates advises foreign companies on the Section 379 compliance—from the FC-1 filing and the 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
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