Companies Act Section 383

Companies Act, Section 383: Service of Process, Notices, and Other Documents on a Foreign Company

Section 383 of the Companies Act, 2013, outlines the procedure for serving legal processes, notices, or other official documents on a foreign company that has established a business presence in India. This section is significant because it ensures that foreign companies, despite being incorporated outside India, remain subject to Indian regulatory and judicial communications.

The provision clarifies who may receive such documents on behalf of the foreign company and what modes of service are legally recognized. The aim is to ensure smooth communication between the authorities or other stakeholders in India and the foreign company, and to prevent disputes about whether a notice or legal document was properly served.

1. Requirement of an Authorized Person under Section 380

Section 380 of the Companies Act requires every foreign company that sets up a place of business in India to submit certain documents and particulars to the Registrar of Companies (RoC). Among these particulars, the foreign company must provide the name and address of one or more persons resident in India who are authorized to accept service of legal processes, notices, and other documents on behalf of the company.

This provision creates a point of contact within India, ensuring that authorities and stakeholders can effectively serve necessary documents without facing jurisdictional or geographical barriers.

2. Valid Modes of Service under Section 383

Once the authorized person’s details are furnished to the Registrar under Section 380, Section 383 provides that any process, notice, or document shall be deemed to have been sufficiently served on the foreign company if it is delivered in one of the following ways:

Personal Delivery: The document may be left at the address of the authorized person, which has been filed with the Registrar. This ensures direct and physical receipt of the communication.
Postal Service: The notice, process, or document may be sent by post to the registered address of the authorized person. Postal delivery is recognized as a valid and sufficient mode of service, which also provides documentary proof of dispatch and receipt.
Electronic Communication: The law also recognizes service by electronic means, such as email or other approved electronic communication systems. This reflects modern technological developments and makes the process quicker and more efficient, especially when dealing with foreign entities.
3. Deemed Sufficiency of Service

If any of the above methods are used delivery by hand, postal service, or electronic mode the service shall be legally presumed to have been validly and sufficiently effected upon the foreign company. This provision prevents the company from later disputing that it did not receive the document, as long as service was carried out in accordance with the address and details supplied to the Registrar.

4. Importance and Legal Implications

Accountability of Foreign Companies: It ensures that foreign companies doing business in India cannot avoid regulatory oversight or legal proceedings by claiming to be outside the jurisdiction.
Efficiency of Communication: By mandating a resident representative and allowing electronic service, it reduces the time and complexity associated with international communication.
Legal Certainty: It eliminates disputes over whether a notice or document has been properly served, thus strengthening the enforceability of regulatory and judicial actions.
Support for Compliance: The provision ties into the broader compliance framework under Section 380, requiring foreign companies to maintain proper records and authorized representatives for legal correspondence.