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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

Zephyr Gmbh, a German company, has set up a place of business in Pune. Under the Companies Act, 2013, where must it keep books of account relating to its business in India?

A foreign company must keep its Indian business books of account at its principal place of business in India. Section 384(3) applies section 128 to it for this purpose, covering receipts, payments, sales, purchases, assets and liabilities relating to the Indian business.

  1. AAt its principal place of business in IndiaCorrect
  2. BOnly at its head office in Germany
  3. CAt the registered office of its Indian auditor
  4. DWith the Registrar of Companies at Pune

Explanation

Section 384(3) applies section 128 to a foreign company to the extent of requiring it to keep, at its principal place of business in India, books of account on monies received and spent, sales and purchases, and assets and liabilities in relation to its Indian business. Keeping them only abroad does not satisfy this requirement.

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