Section 379 of the Companies Act, 2013
Section 379 of the Companies Act, 2013
Title: "Application of Act to foreign companies."
Status: ✅ In force
🔍 Provision Summary:
Section 379 deals with the applicability of the Companies Act, 2013 to foreign companies that are operating in India.
📝 Simplified Explanation:
Applicability:
Sections 380 to 386, 392, and 393 of the Companies Act apply to all foreign companies.
These sections deal with registration, filing of documents, display of name, service of process, accounts, and registration of charges for foreign companies.
More than 50% Indian Ownership Clause:
If 50% or more of the paid-up share capital (equity or preference or both) of a foreign company is held by:
Indian citizens, or
Companies or bodies corporate incorporated in India,
then:
🧾 Objective:
To ensure that:
Foreign companies with substantial Indian ownership are regulated at par with Indian companies.
There is transparency, accountability, and compliance with Indian company law.
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