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Microlesson · 5-min read

Section 382 – Display of Name and Other Particulars by a Foreign Company

## Section 382 – Display of Name, etc. of a Foreign Company

A foreign company carrying on business in India must conspicuously display certain particulars so that Indian stakeholders can identify it and assess its liability status.

### Three different display contexts

Where to displayWhat must be displayedLanguage
At every place of business in India (conspicuously)1. Name of the company 2. Name of country of incorporation 3. Limited liability status (if any)English AND the local vernacular of the place
On every bill-head, letter-head, notice, official publication and business communication1. Name of the company 2. Name of country of incorporation 3. Limited liability status (if any)English
On every prospectus issued in IndiaLimited liability status (if any)English

### Memory hook

  • Place of Business → Bilingual (English + Vernacular)
  • Documents/Letters → English only
  • Prospectus → just disclose limited-liability status (the full Section 387 disclosures sit on top of this)

### Why limited liability must be disclosed

Third parties dealing with a foreign company in India have no easy way of knowing that members' liability is limited. The Act therefore makes it mandatory to give notice of this fact through the name display itself.

Worked example

### Example 1

Q. XYZ Ltd., a company incorporated in Singapore, has opened a branch office in Chennai. What particulars must it display at the branch?

A. Conspicuously at the Chennai branch it must show: (i) Name (XYZ Ltd.), (ii) Country of incorporation (Singapore), (iii) that liability of members is limited. These must appear in both English and Tamil (the local vernacular).

⚠️ Common exam mistakes

  • Stating that the vernacular language requirement applies to letter-heads and bills — it applies only at the place of business.
  • Forgetting that 'limited liability' indication is required on the prospectus.
Bare-Act text Section 382 · Companies Act, 2013 · click to expand
Every foreign company shall – (a) 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; (b) cause the name of the company and of the country in which it is incorporated to be stated in legible English characters in all business letters, billheads and letter paper, and in all notices, and other official publications of the company; and (c) if the liability of the members of the company is limited, cause notice of that fact to be stated in legible English characters in every such prospectus and in all business letters, billheads, letter paper, notices, advertisements and other official publications of the company and conspicuously exhibited on the outside of every office or place where it carries on business in India.
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