The main obligations of Foreign Company are as follows:
(1) Documents to be submitted:
Within 30 days of the establishment of the place of business, a foreign company is required to deliver the following documents to the Registrar for registration –
ADVERTISEMENTS:
(a) A certified copy of the charter, statutes, or memorandum and articles, of the company or other instrument defining the constitution of the company; and, if the instrument is not in the English language, a certified translation thereof;
(b) The full address of the registered or principal office of the company;
Image Source: royalholiday.travel
(c) A list of the directors and secretary of the company, containing the particulars of their names, usual residential addresses, nationality, business occupations, and other directorships held;
(d) The name and address or the names and addresses of the person(s) resident in India, authorised to accept on behalf of the company service of process and any notices or other documents required to be served on the company; and
ADVERTISEMENTS:
(e) The full address of the office of the company in India which is to be deemed its principal place of business in India.
(2) Accounts:
Every foreign company, in every calendar year, is required to –
(a) make out a balance sheet and profit and loss account in such form, containing such particulars applicable to the companies incorporated under the Companies Act, 1956 (i.e. Indian Companies).
(b) Deliver a copy of those documents to the Registrar.
(3) Name:
ADVERTISEMENTS:
Every foreign company is required to state –
(a) Name of the country in which the company is incorporated in every prospectus inviting subscriptions in India for its shares or debentures;
(b) The name of the company and the country in which it is incorporated outside of every office or place where it carries on business in India, , in letters easily legible in English characters, and also in the local language of the place;
(c) The name of the company and of the country in which the company is incorporated, to be stated in legible English characters in all business letters, bill-heads and in all notices, and other official publications of the company; and
(d) If the liability of the members of the company is limited, it is to be stated in every such prospectus and in all business letters, bill-heads notices, advertisements and other official publications of the company.
(4) Office where documents to be delivered:
Any document which any foreign company is required to deliver to the Registrar shall be delivered to the Registrar having jurisdiction over New Delhi and the Registrar of the State in which the principal place of business of the company is situated.
(5) Penalties:
If any foreign company fails to comply with any of the above provisions of Act, the company, and every officer or agent of the company who is in default, shall be punishable with fine which may extend to T 10000 and in the case of a continuing offence, with an additional fine which may extend to? 1000 for every day during which the default continues.