Owners of foreign corporations operating in India must adhere to a number of laws and rules. These requirements are set forth in the Companies (Registration of Foreign Companies) Rules, 2014, which also governs foreign company registration in India. These regulations contain guidelines for disclosing information on directors and secretaries to the Registrar. To maintain compliance and avoid fines, it is essential that business owners stay up to date on these regulations.
A variety of laws and regulations must be followed by owners of foreign firms doing business in India. The Companies (Registration of Foreign Companies) Rules, 2014, which also control the registration of foreign companies in India, contain these conditions. These regulations outline procedures for providing the Registrar with information about directors and secretaries. It is crucial that business owners keep up with these requirements in order to preserve compliance and avoid fines.
Rules for Corporations (Registration of Foreign Companies)
Within thirty days of opening a location of business in India, every foreign company is required to submit specific information to the Registrar. Such corporations are required to disclose information regarding a list of directors and secretaries in addition to the details outlined in the Companies Act, 2013, which applies to them.
According to the Companies (Registration Offices and Fees) Rules of 2014, these businesses must submit Form FC-1 and pay the necessary fees to the Registrar. These applications must be supported by the paperwork listed in Section 380 of the Rules, subsection (1). Additionally, these businesses must present an attested copy of the Reserve Bank of India’s permission. The Foreign Exchange Management Act also requires approval affidavits from other regulators.
The foreign firm is required to complete Form FC-2 with all the information about any changes made to the registration document delivered to the Registrar. The company must submit this application within 30 days of the change taking place.
Audit of Accounts and Returns:
Every foreign company that conducts business in India is required to have an Indian chartered accountant draught and audit their accounts. The international corporation will be subject to the same rules and regulations regulating such audits as domestic companies.
Every foreign business must additionally submit Form FC-3 to the Registrar listing all of its locations that were set up in India as of the balance sheet date. They must also complete and submit a Form FC-4 annual return within sixty days of the end of their fiscal year. These organisations are required to submit such returns and documentation to the Registrar with jurisdiction over New Delhi and to file them.
When a foreign business stops operating in India, it is required to notify the Registrar of the closure. The corporation is no longer required to deliver any documents to the Registrar after the Registrar receives the notice.
Certification of International Businesses
The following requirements must be followed in order to properly certify a copy of any statutes, charters, memorandums, articles, or other documents that make up or define the company’s constitution. The same certification procedure must be followed for any amended documents sent to the Registrar.
The following people can certify the copy specified above if the company is incorporated in a nation outside the Commonwealth:
- a government official from the country where the original company is located
- Notary of that nation
- An employee of the business
These officials can certify the paperwork using the following procedures:
- Authenticated signature or seal by a diplomatic or consular official
- A witness with the power to administer an oath must witness the officer of the company sign the certificate.
The following people can certify the copy described above if the company is incorporated in one of the Commonwealth’s member nations:
- a representative of the government of the nation in which the original corporation is located
- Before a Commonwealth official with the authority to administer oaths, a company officer took an oath.
- An official of the government where the original incorporation is committed may certify the copy, which must then be properly apostilled in accordance with the Hague Convention if the company’s incorporation takes place in a nation that is not a member of the Commonwealth but is a party to the Hague Convention, 1961.
Document translation authenticity
Foreign corporations must file all of their paperwork with the Registrar in English; if not, they must attach an English translation that has been properly validated in accordance with the regulations. The following people can vouch for such translations if they are done outside of India with their signature and seal:
- the representative in charge of the original
- a notary public in the nation of incorporation for the company
- A diplomat or consular officer is authorised to do so if the country in question is not a member of the Commonwealth.
The following individuals can authenticate such translations through their signature and seal if they are produced in India:
- a person qualified to appear before any High Court as an advocate, attorney, or pleader.
- Additionally, an affidavit from a qualified individual who, in the Registrar’s opinion, has enough understanding of both the original language and English.
Annexed Documents to the Prospectus
The prospectus must have the following attachments:
- Any expert’s permission required for the prospectus to be released
- contracts for managing directors or managers, or a memorandum outlining all the details
- All significant contracts entered into during the two years prior that were not in the regular course of business
- a duplicate of the underwriting contract
- a replica of the authority of attorney
action for misrepresentation as a foreign company or imp