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

Orion Ltd., incorporated in Australia, has a place of business in Kolkata. It discontinues its place of business in India. Which statement about the continuing legal position is correct?

Orion remains subject to its Indian filing obligations until it notifies the Registrar that it has ceased to have a place of business in India. Stopping operations does not end the duties automatically, and it does not trigger automatic winding up.

  1. AIts obligation to file Indian-related documents and the Registrar's powers continue until it gives notice of ceasing business and the Registrar actsCorrect
  2. BIts Indian obligations end automatically on the day it stops operating, without any notice
  3. CIt must immediately be wound up under Indian law
  4. DIts Indian obligations end after one year, whatever the notice

Explanation

A foreign company that ceases to have a place of business in India must give notice to the Registrar. Until that notice is given, it continues to be subject to the filing obligations and liabilities. Cessation does not by itself terminate obligations, and it does not trigger an automatic Indian winding up or a fixed one-year release.

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