Companies Incorporated Outside India – Test 1

Foreign Company as per Sec. 2(42) of companies Act, 2013 means any company or body corporate incorporated outside India which has a place of business in India. Place of Business-

1. may be hold by the company directly or through its agent.
2. may be physically or through electronic mode.
3. includes a share transfer or registration office.

Choose the Incorrect one:

To qualify as foreign company, a company must have the following features:

1. It must be incorporated outside India.
2. It must have physical place of business in India.
3. It must conduct a business activity of any nature in India.

Choose the Incorrect one:

Foreign Company as per Sec. 2(42) of Companies Act, 2013 means any company or body corporate incorporated ________ which has a place of business in India whether by itself or through an agent, physically or through electronic mode and conducts any business activity in India in any other manner.

As per Rule 2(1)(c) of Companies (Registration of Foreign Companies) Rules, 2014

1. Electronic mode means carrying out electronically based business to business and business to consumer transactions, data interchange and other digital supply transactions.
2. Business on electronic mode may be conducted by e-mail, mobile devices, social media, cloud computing, document management, voice or data transmission or otherwise.
3. Main server must be installed in India.

Which of the above statement is incorrect?

Examine with reference to the provisions of the Company Act, 2013 whether the following companies can be treated as foreign companies:

1. Acompany incorporated outside India having a share registration office at Mumbai.
2. India citizens incorporated a company in Singapore for the purpose of carrying on business there.

A company was incorporated in U.K. for the purpose of carrying on business there. Examine with reference to the relevant provisions of the Companies Act, 2013 whether it is a “Foreign Company” in the following cases:

Case 1: It was incorporated by an India Citizen.

Case 2: It was incorporated by a company registered in India.

A company incorporated in India but all the shares are held by foreigners. Examine in the light of the provisions of the Companies Act, 2013 whether the  above company can be considered as “Foreign Companies”

Robertson Ltd. is a company registered in Thailand. Although, it has no place of business established in India, yet it is doing online business through telemarketing in India. Whether it will be treated as a Foreign Company under the Companies Act, 2013? Explain.

A company which is incorporated outside India employs agents in India. In the light of the provisions of the Companies Act, 2013 comment whether the above Company can be considered a a ‘Foreign Company’

Trans Asia Limited is registered as a public company u/s 4(7) of the erstwhile Companies Act, 1956 which is a subsidiary of Galilio Limited, a foreign company. Trans Asia Limited carries in business in India describing itself as a foreign company. Can it do so?

Every foreign company shall deliver the required documents to the Registrar for registration, within ______ of the establishment of its place of business in India.

A company incorporated in Singapore has established its place of business at Chennai. There are certain documents which are required to be furnished on such establishment of business in India under the Companies Act, 2013. Who are the authorities to whom such documents are to be furnished?

As per Rule 3(3) of the Companies (Registration of Foreign Companies) Rules, 2014, Information to be delivered to Registrar u/s 380(1) shall be filed in ______ along with prescribed fees.

ABC Ltd., a foreign company having its Indian principal place of business at Kolkata, West Bengal is required to deliver various documents to Registrar under the provisions of the Companies Act, 2013. You are required to state, where the said company should deliver such documents.

All the documents required to be filed with the Registrar by the foreign companies shall be in English language and where any such document is not in English language, there shall be attached a translation thereof in English language duly certified to be correct in the manner given in there rules. Where any such translation is made outside India, it shall be authenticated by

As per Rule 3(4) of the Companies (Registration of Foreign Companies) Rules, 2014, Where any alternation is made in the documents delivered to the Registrar, the foreign company shall, whith in _______ of such alteration, deliver to the Registrar for registration, a return containing the particulars of the alteration in the ________.

Every foreign company shall, in every calendar year, make out a balance sheet and profit and loss account in such form as prescribed, containing such particulars as prescribed, and including or having attached or annexed there to such documents as may be prescribed, and deliver a copy of those documents to ________.

Every foreign company shall, in every calendar year, make out a balance sheet and profit and loss account in accordance with __________.

Every foreign company shall, along with the financial statements required to be filed with the Registrar, attach there to the following documents

Every foreign company shall along with the financial statements required to be field with the Registrar, attach there to documents as mentioned in Rule 4 of the Companies (Registration of Foreign Companies) Rules, 2014. Documents shall be delivered to the Registrar within a period of ________ of the close of the financial year of the foreign company to which the documents relate.

Every foreign company shall file with the Registrar, along with the financial statements, in _______ with prescribed fee, a list of all the places of business established by the foreign company in India as on the date of balance sheet.

Every foreign company shall 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.

Display should be in letters easily legible

1. in English characters
2. in the characters of the local language uses in the locality in which the place is registered.
3. in the characters of the local language uses in the locality in which the place is situated.

Choose the correct one:

Every foreign company shall exhibit on the outside of every office or place where it carries on business in India, the following information:

1. the name of the company
2. the country in which it is incorporated
3. address of the registered company of the company

Choose the correct one:

Every foreign company shall exhibit on the outside of every office or place where it carries on business in India, the following information:

1. the name of the company
2. the country in which it is incorporated
3. If the liability of the members of the company is limited, notice of this fact.

Choose the correct one:

X Inc is a company registered in UK and carrying on Trading Activity, with principal place of business in Chennai. Since the company did not obtain registration or make arrangement to fine Return, the GST Officer having jurisdiction, intends to serve show cause notice on the Foreign Company. The notice shall be deemed to be sufficiently served, if it is addressed to any person whose name and address have been delivered to the Registrar u/s 380 of Companies Act, 2013 and ________.

Every foreign company shall prepare and file, within a period of _______ from the last day of its financial year, to the Registrar annual return in _________ along with prescribed fee, containing the particulars as they stood on the close of the financial year.

Sec. 388 of Companies Act, 2013 provides that no person shall issue, circulate or distribute in India any prospectus offering for subscription in securities of a company incorporated or to be incorporated outside India, whether the company has or has not established, or when formed will or will not establish, a place of business in India, unless before the issue, circulation or distribution of the prospectus in India, a certified copy there of has been delivered for registration to the Registrar. Such copy shall be certified by _______.

For the purpose of section 390, no company incorporated or to be incorporated outside India, whether the company has or not established, or may or may not establish, any place of business in India shall make an issue of Indian Depository Receipts Receipts unless it complies with _________.

If a forign company contravenes the provisions of Chapter XX of Companies Act, 2013, the foreign company shall be punishable with fine which shall not be less than ________ but which may extend to _______.

As per Sec. 393 of Companies Act, 2013, if a foreign company fails to comply with the provisions of Chapter XX, any contract, dealing or transaction entered into by the company will _______.