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CA Intermediate · Corporate and Other Laws · Companies Incorporated Outside India

Bluewave Marine Ltd., a foreign company with a place of business in Kochi, prepares its balance sheet and profit and loss account in its home country. Which statement about its obligations in India is correct under the Companies Act, 2013?

Bluewave Marine must deliver to the Registrar its financial statements and annexed documents as required under the Act, in the prescribed form and time, together with a list of all its places of business in India. Foreign incorporation does not exempt it from this annual filing obligation.

  1. AIt need not file any financial statement in India because it is incorporated abroad
  2. BIt must file with the Registrar the documents it is required to file in its home country, in the form and time prescribed, along with a list of its Indian places of businessCorrect
  3. CIt must file financial statements only if it has paid-up capital above Rs 5 crore
  4. DIt must file only a balance sheet, not the profit and loss account

Explanation

Every foreign company must prepare financial statements as per the Act's requirements and deliver to the Registrar a copy of the balance sheet, profit and loss account and documents required to be annexed, as prescribed, along with a list of all places of business in India as at the date of the balance sheet. A foreign company cannot ignore this by citing foreign incorporation. No capital threshold or balance-sheet-only limit exists.

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