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

Zentra Holdings Inc., a company incorporated in Singapore, sets up a liaison office in Mumbai and begins to carry on business in India through a place of business there. Under the Companies Act, 2013, how is Zentra Holdings Inc. classified?

Zentra Holdings Inc. is a foreign company. The Companies Act, 2013 treats a company incorporated outside India that has a place of business in India and conducts business activity there as a foreign company, regardless of how that place is maintained.

  1. AForeign companyCorrect
  2. BIndian company incorporated under the Act
  3. CGovernment company
  4. DAssociate company of an Indian company

Explanation

A foreign company is one 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. Zentra meets both conditions. It is not incorporated in India, so it cannot be an Indian company.

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