Twinbirds Inc., a company registered in Mauritius has recently set up a back office at Hyderabad in the State of Telangana, wherein the company provides service to its customers. Wood Ltd., an Indian entity, holds 74% of

According to Section 2 (42) of the Companies Act, 2013 a "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. Section 379(1) of Companies Act, 2013 provides that Sections 380 to 386 (both inclusive) and sections 392 and 393 of Companies Act, 2013 shall apply to all foreign companies. Further, section 379 (2) of the Companies Act, 2013 states that where not less than 50% of the paid up share capital whether equity or preference or partly equity and partly preference of a foreign company is held by one or more citizens of India or by one or more companies or body corporates incorporated in India, or by one or more citizens of India and one or more companies or bodies corporate incorporated in India, whether singly or in the aggregate, such company shall comply with the provisions of Chapter XXII Companies Incorporated Outside India and such other provisions of the Companies Act, 2013 as may be prescribed with regard to the business carried on by it in India as if it were a company incorporated in India. In this present case in the question, the following facts are given: (a) Twinbirds Inc. was incorporated in Mauritius and has a place of business in Hyderabad, hence it is a foreign company. (b) The majority of the shareholding of 74% is held by M/S Wood Limited an Indian entity. Thus Twinbirds Inc. would be covered under section 379 and shall comply with the provisions of Chapter XXII of the Companies Act, 2013 and such other provisions of the Companies Act, 2013 as may be prescribed with regard to the business carried on by it in India as if it were a company incorporated in India.