Section 381 And 382 Of The Companies Act 2013

Introduction-

Under Section 2 sub-section 42 of the Companies Act, 2013, the phrase "foreign company" is defined precisely (New Act). Any firm or body corporate established outside of India is referred to as a foreign corporation.

Has a physical or electronic presence in India, whether by itself or through an agency; and engages in any business activity in India in any other way.

To be designated a 'foreign firm,' you must meet both of the conditions listed above. As a result, this new definition has a broader reach than the previous Act. To completely comprehend the breadth of the concept, the phrases 'electronic method' and 'commercial activity Under Section 2 sub-section 42 of the Companies Act, 2013, the phrase "foreign company" is defined precisely (New Act). Any firm or body corporate established outside of India is referred to as a foreign corporation.

• Has a physical or electronic presence in India, whether by itself or through an agency;

• and engages in any business activity in India in any other way.

To be designated a 'foreign firm,' you must meet both of the conditions listed above. As a result, this new definition has a broader reach than the previous Act. To completely comprehend the breadth of the concept, the phrases 'electronic method' and commercial activity must be defined.

Provisions of Section 381 and 382

Section 381: Accounts of a foreign firm

(1) In each calendar year, every foreign corporation must:

• (a) prepare a balance sheet and profit and loss account in such form as may be specified, comprising such information and including or having annexed or attached such documents as may be required; and

• (b) give the Registrar a copy of those documents:

Provided, however, that the Central Government may order, by notification, that the requirements of subsection (a) do not apply to any foreign firm or class of foreign corporations, or that they do apply subject to such exceptions and changes as may be indicated in that notification.

(2) If any of the documents described in subsection (1) is not in English, a certified English translation shall be attached to it.

(3) Every foreign company must transmit a copy of a list in the specified form of all locations of business established by the company in India as of the date with reference to the Registrar, along with the papers needed to be delivered to him under sub-section (1).

Section 382: Display of name, etc., of foreign company

Every foreign company shall—

(a) conspicuously 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, in letters easily legible in English characters, and also in the characters of the language or one of the languages in general use in the locality in which the office or place is situate;

(b) cause 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, billheads and letter paper, and in all notices, and other official publications of the company; and

(c) if the company's members' responsibility is restricted, give notice of that fact—

• (i) to be stated in legible English characters on the outside of every office or place where it carries on business in India, as well as on all business letters, bill-heads, letter paper, notices, advertisements, and other official publications of the company; and

• (ii) to be conspicuously displayed on the outside of every office or place where it carries on business in India, in legible English characters and also in legible characters of the language or one of the languages in general use in the locality;