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

Lexor Holdings Inc., a company incorporated in Delaware, USA, sets up a liaison office in Pune and begins carrying on business in India through it. Under the Companies Act, 2013, how is Lexor Holdings Inc. classified for the purposes of Chapter XXII?

Lexor Holdings Inc. is a foreign company. The Companies Act treats a body corporate incorporated outside India that has a place of business in India, and conducts business activity there, as a foreign company, so Chapter XXII applies to it.

  1. AForeign companyCorrect
  2. BPrivate company incorporated in India
  3. CGovernment company
  4. DNidhi company

Explanation

A foreign company is a company or body corporate incorporated outside India that has a place of business in India, whether by itself or through an agent, physically or electronically, and conducts business activity in India in any other manner. Lexor has a place of business in Pune, so it is a foreign company. It is not incorporated in India, so the other classes cannot apply.

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