Notification - Applicability of Section 381 to Foreign Airline Company


The Ministry of Corporate Affairs (“MCA”) on 19 July 2016 issued a notification with respect to the submission of accounts of Foreign Airline Companies (having a share capital) with the Registrar of Companies. As per the aforesaid notification, it shall be deemed as sufficient compliance of the provisions of Clause (a) of Section 381(1) of the Companies Act, 2013 (“CA 2013”), if in respect of the period ending on or after the 31 March 2016, a Foreign Airline Company (having a share capital) submits to the appropriate Registrar of Companies in India the following:

    Copies of the latest consolidated financial statements of the parent Foreign Company as submitted to the concerned  authority in the country of its incorporation under the provisions of the law for the time being in force in that  country. In case the consolidated financial statements are not in English language, a copy of the certified translation in English Language is required to be annexed;

    Copy of the statement of receipts and payments for the financial year in respect of its Indian Business operations, duly authenticated by a practicing Chartered Accountant in India or a firm or a Limited Liability Partnership of practicing Chartered Accountants in India; and

    All the prescribed documents as mentioned in the Rule 4(2) of the Companies (Registration of Foreign Companies) Rules, 2014 namely:

(a)   Statement of related party transactions
(b)   Statement of repatriation of profits
(c)   Statement of transfer of funds

Further, apart from the above mentioned information, the Central Government may direct by a notice in writing to such Foreign Airline Company, to furnish additional information relating to its accounts as may be required.

The notification shall come into force on the date of its publication in the Official Gazette.

To read the notification - http://www.mca.gov.in/Ministry/pdf/Notification_19072016.pdf

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