# Application of Act to Foreign Companies — Section 379
## The structure (two limbs)
Section 379 is a two-limb provision. Limb A applies to all foreign companies; Limb B brings certain foreign companies under a much heavier compliance load by treating them as if they were Indian companies.
### Limb A — Section 379(A)
Sections 380 to 386 (both inclusive) and sections 392 and 393 apply to every foreign company. This is the baseline — registration, accounts, display of name, service of process, registers, fees, interpretation, punishment, dating of prospectus.
### Limb B — Section 379(B) — the 50% Indian-ownership trigger
If 50% or more of the paid-up share capital of a foreign company (whether equity, preference, or partly both) is held by:
- (a) one or more Indian citizens; or
- (b) one or more companies/bodies corporate incorporated in India; or
- (c) a combination of (a) and (b)
— whether singly or in aggregate — then the foreign company complies with this Chapter and such other provisions as the Central Government may prescribe, as if it were a company incorporated in India.
## Why the 50% rule matters
The legislature suspects that an entity majority-owned by Indians but incorporated abroad may be a 'foreign company' only in form. To prevent regulatory arbitrage, such companies are subjected to substantively Indian-company-level compliance.
## Quick test
| Indian holding in foreign co. | Trigger? | Compliance |
|---|---|---|
| < 50% | No | Sections 380–386, 392, 393 only |
| ≥ 50% (singly or aggregate) | Yes | Chapter XXII + such other provisions as CG prescribes |