Background
Section 382 of the Companies Act mandates specific display and disclosure requirements for foreign companies operating in India to ensure transparency and public awareness regarding their foreign origin and liability status.
Compliance Requirements
Section 382: Display Requirements
Foreign companies must comply with three primary obligations regarding name display and disclosure:
Section 382(a)
Every foreign company shall conspicuously exhibit on the outside of every office or place where it carries on business in India, the name of the company and the country in which it is incorporated, in letters easily legible in English characters, and also in the characters of the language or one of the languages in general use in the locality in which the office or place is situate.
Section 382(b)
Every foreign company shall cause the name of the company and of the country in which the company is incorporated, in legible English characters in all business letters, billheads and letter paper, and in all notices, and other official publications of the company.
Section 382(c) Where members of the foreign company have limited liability, cause notice of that fact:
Penalty & Punishment
Fine of not less than Rs. 1,00,000/- on Foreign Company which may extend to Rs. 3,00,000/- and for continuing offence, an additional fine of Rs. 50,000/- for each day of default after first and every officer of the company in default will be punishable with fine not less than Rs. 25,000/- and may extend to Rs. 5,00,000/-
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