Section 384 of the Companies Act, 2013
Section 384 of the Companies Act, 2013 deals with the "Debentures, annual return, registration of charges, books of account and their inspection" in case of foreign companies.
Here is a summary of Section 384:
Section 384 – Debentures, Annual Return, Registration of Charges, Books of Account and their Inspection (Applicable to Foreign Companies)
1. Debentures (Sub-section 1):
The provisions relating to debentures (as applicable to Indian companies) shall also apply to foreign companies.
2. Annual Return (Sub-section 2):
Every foreign company shall file with the Registrar the annual return in accordance with the prescribed form and manner within 60 days from the last day of its financial year.
3. Registration of Charges (Sub-section 3):
The provisions of Chapter VI (Registration of Charges) shall apply to charges on properties in India which are created by a foreign company.
4. Books of Account and Inspection (Sub-section 4):
Every foreign company shall:
Keep books of account at its principal place of business in India.
The books must relate to Indian transactions.
Such books are open to inspection.
Key Points:
Ensures foreign companies operating in India comply with similar financial and regulatory obligations as domestic companies.
Seeks to maintain transparency and accountability for foreign companies' Indian operations.
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