87. Foreign Company

“Foreign Company” is a Company, which is incorporated outside India. If such Company establishes a place of business in India, it has to comply with certain requirements as provided in Sections 592 to 602 of the Companies Act, 1956. Further, if more than 50% shares of such foreign Company are held by Indian Citizens or body corporate, such Companies have to comply with certain more formalities under Companies Act, 1956.
A Company registered in India is not a “Foreign Company, even if Foreign Companies or foreign institutions or foreign body corporate holds the entire share capital.
For establishing a place of business in India, the Company has to submit the following documents to the concerned Registrar of Companies for registration within 30 days.
1.	Certified true copy of the instrument defining the constitution of the Company, in English. (like Memorandum of Association and Articles of Association of the Company)
2.	Full address of the principal (registered) office of the Company.
3.	List and details of directors and secretary (present and former)
4.	Name and address of person/s, authorized to accept notices/ documents in India on behalf of the Company.
5.	Full address of the office (principal place of business)of the Company in India.
Other important provisions:
1	Any changes should be filed with Registrar of Companies.
2.	If the Foreign Company ceases to have its office in India, it should also inform the Registrar of Companies.
3.	Balance sheet and Profit and Loss Account should be filed with the Registrar of Companies.
4.	The shares or debentures issued in India by the Foreign Company shall indicate the country, in which it is incorporated.
5.	Name and the country in which it is incorporated should be exhibit outside every office or place of business in India and in letter heads, bills and other official publications.
Other Provisions applicable to Foreign Companies.
1.	Creation of charge on the property in India
2.	Provisions regarding the maintenance of books of accounts.
3.	Regarding annual return.
4.	Inspection of books of accounts by Registrar of Companies, Government, etc