The Companies (Central Government's) General Rules and Forms 1956 (Rule 20) prescribes a fixed fee of INR 5,000 to be paid for the registration of documents by a foreign company.
A foreign company must file its balance sheet and profit and loss account in the same form, and containing the same particulars (particularly with respect to documents relating to every subsidiary of the foreign company) exactly as it would if it had been a company within the meaning of the Companies Act (sec 594).
The Central Government may direct that these accounting requirements do not apply or apply with modification to a particular foreign company, or any class of foreign companies.
A foreign company having a place of business in India is required, within 30 days of the establishment of a place of business in India, to deliver to the Registrar the names of the persons in India authorized to accept service of process on the company and the full address of the office of the company in India.
Documents to be filed
A foreign company which establishes a place of business in India is statutorily obliged to deliver the following documents to the Registrar at the time of registration :
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Service tax is a central tax, which has been imposed on certain services and is the latest addition to the genus of indirect taxes like customs and central excise duty. India, a developing country, was somewhat slow in discovering the potential of this kind of indirect taxation for enhancement of revenue collection and it was the Finance Act 1994 that first introduced the service tax provisions through its Chapter V. Service Tax is collected by Central Excise Department
Any alteration to the aforesaid particulars furnished to the Registrar shall be communicated to him by filing a return in the prescribed form.
Registration of charges executed outside India
Foreign companies must register, with the Registrar, the particulars and the instrument of all charges on property, wherever situate (Companies Act, sec 127 and 600). The fees for registration vary from time to time and are set out in Sch X of the companies Act.
Bodies with jurisdiction
The statutory bodies, which mainly exercise jurisdiction over foreign companies, are :
Liquidation of a foreign company
A foreign company may be wound up as an unregistered company, only by NCLT/court, not Voluntarily or under the supervision of the court.
When a foreign company ceases to carry on business in India, it may be wound up in India as an unregistered company even though the foreign company has been dissolved or otherwise ceased to exist under the laws under which it was incorporated. A foreign company may be wound up if :
A company is deemed to be unable to pay its debts when :
Requirements for establishment of subsidiaries
Joint venture company or a wholly-owned subsidiary in India of a person resident outside India A person resident outside India may establish its presence in India by either setting up wholly-owned subsidiary (WOS) or joint venture company (JVC) with any other Indian entity.
The foreign direct investment (FDI) in a WOS in India or a JVC in India will be subject to the exchange control regulations and the FDI policy of the Government of India. There are certain sectors/activities listed out in the exchange control regulations where automatic approval of RBI for investment is not available. In such cases, an application is required to be made to the Foreign Investment Promotion Board (FIPB)/Secretariat for Industrial Assistance (SIA) for its approval for such investment. The exchange control regulations also list out other activities where automatic approval of RBI is available for investment, subject to certain limits specified therein. Any proposed investment in excess of the limits specified therein will again require approval of FIPB/SIA. The list of industries in respect of which the automatic route of RBI is available and in respect of which approval of FIPB/SIA is required is set out in greater detail subsequently.
A subsidiary once incorporated under the provisions of the Companies Act is treated exactly like a domestic company.
Fees and duties
A WOS or JVC in India will be required to pay the same registration fees as any other company in India. The fees vary according to the amount of the nominal share capital of the company. The fees vary according to the amount of the nominal share capital of the company. The table of fees is set out in Sch X of the Companies Act.
Companies which increase share capital after registration must pay a fee when submitting notice of the increase to the Registrar. The fee in this case is the difference between that payabl.