Section 384: Debentures, annual return, registration of charges, books of account and their inspection
This section is for applying various Indian company laws to foreign companies operating in India.
The section, clause by clause
What the section says
In plain terms
(1)The provisions of section 71 shall apply mutatis mutandis to a foreign company.
A foreign company must follow the same rules as an Indian company when it comes to issuing debentures, as outlined in a specific part of the law.
(2)The provisions of section 92 1[and section 135] shall, subject to such exceptions, modifications and adaptations as may be made therein by rules made under this Act, apply to a foreign company as they apply to a company incorporated in India.
A foreign company must also file an annual return and follow rules about director's responsibilities, with some possible exceptions or modifications.
(3)The provisions of section 128 shall apply to a foreign company to the extent of requiring it to keep at its principal place of business in India, the books of account referred to in that section, with respect to monies received and spent, sales and purchases made, and assets and liabilities, in the course of or in relation to its business in India.
A foreign company must keep certain financial records at its main Indian office, including details of money received and spent, sales and purchases, and assets and liabilities related to its Indian business.
(4)The provisions of Chapter VI shall apply mutatis mutandis to charges on properties which are created or acquired by any foreign company.
A foreign company must follow the same rules as an Indian company when it comes to registering charges on properties in India.
(5)The provisions of Chapter XIV shall apply mutatis mutandis to the Indian business of a foreign company as they apply to a company incorporated in India.
A foreign company's Indian operations are subject to the same rules as an Indian company when it comes to inspection and investigation of its business.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
Amendment notes
- 1. Ins. by Act 1 of 2018, s. 78 (w.e.f. 9-2-2018).
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Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.