Annual return for foreign company

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Ramanathan (Querist)
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28 June 2012 Dear All,

Can anyone explain which is the due date for filing Annual return for a Foreign Company, As per Application of section 159 to Foreign Companies Rules 1975 "Every foreign company having a share capital shall in each year prepare and file with the Registrar, within sixty days from the last day of its financial year"

Please explain "its financial year" whether as per Indian Financial year (Apr to Mar and due date is 29th Jun) or Foreign Companies Financial year (Jan to Dec and due date is 29 Feb or 1st Mar res..)

For filing Accounts of Foreign Company within a period of nine months of the close of the financial year of the foreign company to which the documents relate,

Please explain "the close of the financial year of the foreign company" related to Foreign Company suppose FC follows Jan to Dec, then 9 months from Dec i.e Sep.

Thanks
Ram

Ramanathan

Ramanathan (Querist)
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03 July 2012 Can any one reply to my query...

Regards
Ramanathan

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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14 July 2024 Certainly! Let's break down the terms and requirements based on your query regarding the filing of annual returns and accounts for a foreign company in India.

### Filing Annual Return:

As per the provisions applicable to foreign companies under the Companies Act and related rules in India:

1. **Financial Year Definition:**
- When the rules state "its financial year," it refers to the financial year of the foreign company itself, not necessarily the Indian financial year (April to March).
- For example, if the foreign company follows a financial year from January 1st to December 31st, then "its financial year" ends on December 31st.

2. **Due Date Calculation:**
- The annual return for a foreign company with a share capital must be filed within 60 days from the last day of its financial year.
- Using the example of a foreign company with a financial year ending on December 31st, the due date for filing the annual return would be 60 days from December 31st.

- Therefore, if the financial year of the foreign company ends on December 31st:
- Last day of financial year: December 31st
- Due date for filing annual return: 60 days from December 31st

This would typically fall in February (around February 28th or 29th in a leap year).

### Filing Accounts:

1. **Financial Year of the Foreign Company:**
- Similarly, when the requirement states "nine months from the close of the financial year of the foreign company," it refers to the foreign company's financial year, not the Indian financial year.

2. **Due Date Calculation for Accounts:**
- If a foreign company's financial year ends on December 31st (following the earlier example):
- Close of financial year: December 31st
- Nine months from the close of financial year: September 30th of the following year

Therefore, in this case, the accounts of the foreign company would need to be filed with the Registrar of Companies in India by September 30th.

### Conclusion:

In summary, the terms "its financial year" and "the close of the financial year of the foreign company" refer to the specific financial year of the foreign company itself, not the Indian financial year. These terms are used to determine the due dates for filing annual returns and accounts of foreign companies operating in India, ensuring compliance with Indian regulatory requirements based on the company's own financial reporting cycle.

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