Sunrise Online Coaching Limited (the company) is registered in Singapore. It has no place of business established in India, however, it is conducting online educational courses and providing online tutorials and coaching

CS Executive · Company Law and Practice · PYQS · June 2024
Sunrise Online Coaching Limited (the company) is registered in Singapore. It has no place of business established in India, however, it is conducting online educational courses and providing online tutorials and coaching for various courses by charging fee for Indian students who have joined the courses online from India. The registered office is situated at Singapore and having its main server for online coaching outside India. State the status of the company under the provisions of the Companies Act, 2013.

Answer & Explanation:

Under section 2 (42) of the Act , "Foreign Company" means any company or body corporate incorporated outside India. which, - has a place of business in India whether by itself or through an agent, physically or through electronic mode; and conducts any business activity in India in any manner. According to Rule 2(l)(c)(iv) of the Companies (Registration of Foreign Companies) Rules, 2014 . "Electronic mode" means carrying out electronically based, whether main server is installed in India or not, including, but not limited to online services such as telemarketing, telecommuting, telemedicine, education, and information research. In the above case, Sunrise Online Coaching Limited is a company registered in Singapore. It has no place of business established in India but is doing online business through electronic mode in India having its main server for online coaching outside India. As per the definition of "Electronic Mode", the Company incorporated outside India, conducting business in India through electronic mode whether main server is installed in India or not, the company will be treated as a foreign company.

Topics: Companies Incorporated Outside India

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