MCA Clarification on Business Place Closure by Foreign Company: General Circular 1/2017

MCA Clarification on applicability of Provisions u/s 391(2) of Companies Act 2013 in the case of Closure of Place of Business in India of a Foreign Company: General Circular 1/2017

MCA has reviewed the provisions of Section 391(2) of the Companies Act 2013 which stipulates Chapter XX shall apply mutatis mutandis, to closure of place of business of a foreign company in India, w.e.f. 15 Dec. 2016, as if it were a company incorporated in India. MCA has noted that provisions of Section 391(1) and 391(2) need to be read harmoniously and has clarified that provisions of Section 391(2) shall apply to only those foreign companies which have issued prospectus or IDRs pursuant to provisions of Chapter XXII of the Companies Act, 2013.

MCA Clarification on applicability of Provisions u/s 391(2): General Circular 1/2017

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