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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

Sakura Foods Inc., a foreign company, delivered its documents to the Registrar on establishing a Mumbai office. Four months later it changed the person in India authorised to accept service of process. What is the position under the Act?

The company should have delivered a return containing the particulars of the change to the Registrar within thirty days of the alteration. Section 380(3) applies to any alteration in delivered documents, and the authorised person for service is one of those particulars, so the four-month delay is a lapse.

  1. ANo filing is needed as the original registration remains valid
  2. BIt should have delivered a return of the alteration within thirty days of the changeCorrect
  3. CIt must file the return only at the next annual filing date
  4. DIt must file the return within seven days of the change

Explanation

Section 380(3) requires that where any alteration occurs in the documents delivered, the foreign company delivers a return of particulars of the alteration in the prescribed form within thirty days. The authorised person's details are among the particulars under Section 380(1)(d), so the change must be reported within thirty days. Waiting for an annual date or using seven days has no basis.

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