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CS Executive · Setting Up of Business, Industrial and Labour Laws · Setting up of Branch Office, Liaison Office and Wholly Owned Subsidiary by Foreign Company

Kirin Corp (Japan) has an Indian branch. The Board decides to keep the branch-related books of account at a place in India other than the registered office. What must the company do under Section 128(1)?

The company must, within seven days of the Board's decision, file a written notice with the Registrar giving the full address of the other place in India where the books of account are to be kept, as required by the first proviso to Section 128(1).

  1. AObtain prior approval of the Central Government
  2. BFile a notice in writing with the Registrar giving the full address of that other place within seven days of the decisionCorrect
  3. CInform the Registrar within thirty days of the end of the financial year
  4. DNothing, as books can be kept anywhere without intimation

Explanation

The first proviso to Section 128(1) permits the Board to decide that books be kept at another place in India, and the company must within seven days of that decision file a written notice with the Registrar giving the full address. Thirty days is not stated in the section.

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