Skip to content

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

Kestrel Foods Pte. Ltd., a Singapore company with a place of business in Kochi, has failed to deliver its financial statements to the Registrar as required for a foreign company. Which statement correctly states the consequence under the Companies Act, 2013?

The company and every officer in default face a monetary penalty, with an additional daily penalty for continuing default. A foreign company with a place of business in India must file its financial statements with the Registrar. Indian law cannot cancel its foreign incorporation, and it is not exempt from filing.

  1. AThe company and every officer in default are liable to a penalty, with additional penalty for continuing defaultCorrect
  2. BOnly the Singapore directors are liable, and the Indian authorised representative is exempt
  3. CThe company's incorporation in Singapore stands cancelled
  4. DNo consequence arises because foreign companies are exempt from filing accounts in India

Explanation

A foreign company must file with the Registrar, each year, its balance sheet and profit and loss account and other documents as prescribed. On default, the company is punishable with a monetary penalty and a further penalty for each continuing day, and every officer in default is also liable. The Indian law cannot cancel foreign incorporation, and foreign companies are not exempt from filing.

Did you get it right without looking?

One question tells you little. A timed set on Companies Incorporated Outside India shows your real accuracy, how long you take and where you lose marks.

Practise Companies Incorporated Outside IndiaFree diagnostic mock

More Companies Incorporated Outside India questions