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CS Executive · Setting Up of Business, Industrial and Labour Laws · Corporate Entities - Companies

Under the Companies Act, 2013, what must a foreign company do each calendar year in relation to its accounts?

Every foreign company must, in every calendar year, prepare a balance sheet and profit and loss account in the prescribed form and deliver a copy to the Registrar. Exemptions exist only if the Central Government notifies them; the duty does not depend on Indian shareholding.

  1. AMake out a balance sheet and profit and loss account in the prescribed form and deliver a copy to the RegistrarCorrect
  2. BDeliver only a balance sheet, since profit and loss account is not required
  3. CFile accounts only if Indian holding exceeds 50%
  4. DDeliver accounts to the Registrar only when the Central Government calls for them

Explanation

Section 381(1) requires every foreign company, in every calendar year, to make out a balance sheet and profit and loss account in the prescribed form and deliver a copy to the Registrar. The Central Government may exempt classes by notification, but the default duty applies to all.

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