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The Companies Act, 2013

Chapter XXII - Companies Incorporated Outside India (379 - 393)

Section 381- Accounts of foreign company.

[Notification Date: 26.03.2014; Effective from: 01.04.2014]

Section 381- Accounts of foreign company. [Corresponds to Section 594 of the Companies Act, 1956]; [Relevant Rule: 4,5,6 The Companies (Registration of Foreign Companies) Rules, 2014]

 (1) Every foreign company shall, in every calendar year,—

1(a) make out a balance sheet and profit and loss account in such form, containing such particulars and including or having annexed or attached thereto such documents as may be prescribed - [Rule 4]; and

(b) deliver a copy of those documents to the Registrar:

Provided that the Central Government may, by notification, direct that, in the case of any foreign company or class of foreign companies, the requirements of clause (a) shall not apply, or shall apply subject to such exceptions and modifications as may be specified in that notification.

(2) If any such document as is mentioned in sub-section (1) is not in the English language, there shall be annexed to it a certified translation thereof in the English language.

(3) Every foreign company shall send to the Registrar along with the documents required to be delivered to him under sub-section (1), a copy of a list in the prescribed form - [Rule 6] of all places of business established by the company in India as at the date with reference to which the balance sheet referred to in sub-section (1) is made out.


Note: 1 : Section 381 (1) (a) of the Companies Act, 2013 shall apply to a foreign company which is an airline company having a share capital with following exceptions and modifications namely:

1.    It shall be deemed sufficient compliance of the provisions of clause (a) of sub-section (1) of section 381 of the Act, if in respect of the period ending on or after the 31st March, 2016, a company submits to the appropriate Registrar of Companies in  India,-

(i)  documents relating to copies of latest consolidated financial statements of the parent  foreign company , as submitted by it to the prescribed authority in the country of its  incorporation under the provisions of the law for the time being in force in that country:

Provided that where such documents are not in English language, there shall be annexed to it a certified translation thereof in the English language.

(ii)  in respect of its Indian Business operations, a statement of receipts and payments for the financial year, duly authenticated by a practicing Chartered  Accountant  in  India  or  a firm  or  a  Limited  Liability Partnership of practicing Chartered Accountants in India.

(iii)   the documents required to be filed with Registrar of Companies under sub-rule (2) of rule  4 of the Companies (Registration of Foreign Companies) Rules, 2014

2. Notwithstanding anything contained in the  above  paragraphs,  the company shall, if  so required by notice in writing from the Central Government, furnish to the Central Government such information with regard to its accounts as the Central Government may require. [ Notification S.O. 2463 (E) dated 19.07.2016 effective from 19.07.2016]