Foreign Companies are those which are Incorporated outside India and having place of business in India.
In that case,
1. Apple Inc is an US company and it has place of business in India say web based marketing. - Then it will be treated as a Foreign Company in India.
2. Apple Inc have an affiliate in India i.e., Apple India Private Limited which is Incorporated and formed under Indian Companies Law but having foreign shareholders. - Then it is an Indian Company because it is Incorporated in India.
Is my understanding is correct??
please advise. thank you.
NOT, It's not an Indian company if the following conditions fulfilled the criteria;
(1) not less than 50% of paid up capital(equity/preference or partly both) held by:
1. one or more citizens of India; or
2. by one or more companies or body corporate incorporated in india; or
3. both the above 1&2 points.
whether singly or in the aggregate,such company shall comply with provisions of section 379 with regard to the business carried on by it in india as if it were a company incorporated in india.
(I hope the above points will help you for better understanding)
CAclubindia
