Friday, February 13, 2015

Provisions Applicable for Foreign Company

If any person or group of persons, who trade or carry on business in any manner under any title or description or name as a foreign company registered under the Act or the rules made there under, that person or each of those group of persons shall, shall be liable for investigation under section 210 of the Act and action consequent upon that investigation shall be taken against that person.

  • The punishment has been increased, wherein a foreign company fails to comply with the provision of section 387, Section 388, Section 389 and Section 390 of the new Act. Under the old Act, such companies were punishable with imprisonment for a term up to 6 months or with fine up to fifty thousand rupees or with both.  Also, punishment for default in case a foreign company fails to comply with any other provisions applicable on foreign companies in respect of document to be delivered to Registrar after commencement of business in India, return to be delivered to the Registrar where documents are altered, accounts of foreign company and every officer of the company in default was punishable with fine which may extend to ten thousand and in case of a continuing offense, with an additional fine of one thousand rupees for every day during which the default continues.

However under the New Act, a general penalty is prescribed for default of any of the provision of this chapter. Now, the company in default shall be punishable with fine which shall not be less than one lakh rupees but which may extend to three lakh rupees and in the case of a continuing offense, with an additional fine which may extend to fifty thousand rupees for every day during which the default continues and every officer who is in default shall be punishable with imprisonment for a term which may extend to six months or with fine that shall not be less than 25000 rupees but which may extend to extend to 1 lakh rupees, or with both.

Due Diligence Financial Services provides services to bank in the field of Due Diligence Report for their customer before sanctioning loan about their physical existence, goodwill and market coverage. And services includes Company registration in Delhi Gurgaon Noida which includes Section 8 company registration or OPC Registration or LLP formation or annual filing of private limited company or annual filing of public limited company as well as LLP in Delhi Noida Gurgaon.


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