When a foreign company operates in India, members of the public dealing with it must immediately know:
Its name
The country of its incorporation, and
Whether the liability of members is limited
Section 382 ensures this through two specific display obligations.
## Two Display Locations
### 1. At Every Office / Place of Business in India
Name of the company,
Country of incorporation, and
Fact that liability of members is limited (if applicable).
How displayed: Conspicuously, in legible letters, in English AND in the language in general use in the locality where the office/place is situated.
### 2. On All Business Letters, Billheads, Letter Paper, Notices & Other Official Publications
Name of the company,
Country of incorporation, and
Fact that liability of members is limited (if applicable).
How displayed: In legible English characters.
## Subtle Difference — Languages
Display Location
Languages
Office signboard
English + local language
Letters, billheads, etc.
English only
The physical signboard must also be in the local language so anyone visiting can read it; printed publications need only be in English.
## When Liability is Unlimited
If the foreign company's members do not have limited liability, the 'fact of limited liability' is simply not stated (since there is no such fact). The other two items (name and country) remain mandatory.
Worked example
### Example 1
Q. Tokyo-incorporated TZL Ltd. (members with limited liability) opens a branch in Chennai. What must its signboard show, and in which languages?
A. The signboard, displayed conspicuously outside the Chennai office in legible letters, must state: (i) 'TZL Ltd.' (name); (ii) 'Incorporated in Japan'; (iii) the fact that liability of its members is limited. It must be in English AND in the language in general use in Chennai (Tamil).
### Example 2
Q. Must the same trilingual display appear on TZL's invoices and letterheads?
A. No. On business letters, billheads, letter paper, notices and other official publications, the three particulars need only be in legible English characters.
⚠️ Common exam mistakes
Using only English on the office signboard — local language is also required.
Insisting on local language on letterheads — only English is required there.
Omitting the country of incorporation, treating only the name as required.
Forgetting the limited-liability disclosure when applicable.
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 in which the office or place is situate; (b) cause the name of the company and of the country in which the company is incorporated, to be stated in legible English characters in all business letters, bill-heads 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 every such prospectus issued and in all business letters, bill-heads, letter paper, notices, advertisements and other official publications of the company, in legible English characters; and to be conspicuously exhibited on the outside of every office or place where it carries on business in India.