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

Orion Textiles Inc., a foreign company with a place of business in Surat, is registered with the Registrar. Its Indian office displays the company name only on a signboard and omits other particulars, and its Indian letterheads do not state the country of incorporation. Orion's authorised person in India also receives a notice at the registered Indian address. Which statement is correct?

Orion must display its name and country of incorporation outside every Indian office in legible English and the local language. It must also state its name, country of incorporation and limited liability, where applicable, on business letters, bills, notices and other official publications. Prospectus issue or country of origin is irrelevant.

  1. AThe company must state on its letters and other official publications the name, country of incorporation and, if not in English, a translation, and must display its name and country at its Indian officesCorrect
  2. BDisplay of name is required only on the signboard, and no other publication is covered
  3. CDisplay is required only if the company has issued a prospectus in India
  4. DDisplay of the country is mandatory only for companies incorporated in Commonwealth countries

Explanation

A foreign company must conspicuously exhibit on the outside of every office or place of business in India its name and country of incorporation in letters easily legible in English and in the local language. It must also state its name, country of incorporation and, if the liability of members is limited, that fact on all business letters, bills, notices and other official publications. Orion is therefore non-compliant, and the other options add conditions that the law does not impose.

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