Foreign Company Flashcards
Foreign Company definition [Sec. 2(42)]
Means any company or body corporate incorporated outside India which -
A) has a place of business in India whether by itself or through an agent, physically or through electronic mode and
B) conducts any business activity in India in any other manner
Accounts of Foreign Company - Sec. 381
- Every FC shall in every Calendar Year
a. Make BS, P&L in prescribed forms, particulars and annexures
b. Deliver a copy to ROC - If not in English - Certified Translation
- Along with these docs also send List of POB in India to ROC (In Form FC-3)
- Also include - a. Statement w.r.t RPT (Related Party Transactions)
b. Statement of Repatriation of Profit
c. Statement of Transfer of Funds - Within 6 months and ROC may extend it upto 3 months
- Audit by CA
Punishment for Contravention - Sec. 392
Foreign Company –> Fine - ₹1 lakh to ₹3 Lakh and additional fine of ₹50,000 per day
OID –> ₹25,000 to ₹5 Lakh and NO JAIL
Sec. 393 - Cannot Sue if Contravention of Sections
Validity contracts not affected but FC which has not complied with the provisions of this Act, shall not be entitled to sue, claim set-off, make any counter claim
Documents to be delivered to Registrar by Foreign Companies - Sec. 380
Within 30 days should file : CA(2)R PDC
A) Charter - MOA/AOA or any other documents defining constitution (translated into English)
B) Full Address of principle office of the company (not in India)
C) Full Address of office of Co. deemed to be principal office in India
D) Name and Address of Person Resident in India(PRI)
E) Earlier Place of Business in India if any
F) List of all the Directors (Name, Father’s name, PAN, DIN)
G) Declaration that none of the directors are Convicted/ Debarred from formation of a company in India or abroad