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Microlesson · 5-min read

Fees & Interpretation — Sections 385 & 386

# Fees & Interpretation — Sections 385 & 386

## Section 385 — Fee for registration of documents

For registering any document required under Chapter XXII, the foreign company shall pay such fee as may be prescribed to the Registrar.

## Section 386 — Interpretation (3 key expressions)

ExpressionMeaning
'Certified'Certified in the prescribed manner to be a true copy or a correct translation
'Director' (in relation to a foreign company)Includes any person in accordance with whose directions or instructions the Board of Directors of the company is accustomed to act
'Place of business'Includes a share transfer office or share registration office

## Why these definitions matter

  • The 'director' (shadow director) limb extends compliance liability to persons who control the board de facto, even if not formally appointed.
  • 'Place of business' includes share transfer / share registration offices — so a foreign company that runs only a share transfer office in India still triggers Chapter XXII.
  • 'Certified' is the operative concept whenever Section 380 / 381 require certified copies and translations.

Worked example

### Example 1

Worked example: A foreign company has no Indian office but maintains a share registration office in Chennai for its Indian shareholders. Conclusion: The Chennai office is a 'place of business' under Section 386 → Chapter XXII compliance is triggered, including Form FC-1 within 30 days.

⚠️ Common exam mistakes

  • Treating a share transfer or share registration office as a 'mere clerical setup' — it is a 'place of business' under Section 386 and triggers Chapter XXII
  • Ignoring shadow directors — the Section 386 definition of 'director' brings persons giving binding instructions to the Board within scope
  • Assuming 'certified' has a uniform meaning — it means certified in the prescribed manner under the Rules
Reference: Sections 385 & 386 — Companies Act, 2013
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