Amended and updated notes on section 393A of the Companies Act 2013 as amended by the Companies (Amendment) Act, 2020 and Company Rules made there under. Detail discussion on provisions and rules related to Exemptions under this Chapter.
Chapter XXII (Sections 379 to 393A) of the Companies Act 2013 (CA 2013) deals with the provisions related to accounts of companies. Section 393A of CA 2013 provides for Exemptions under this Chapter.
Recently, we have discussed in detail section 393 (Company’s failure to comply with provisions of this Chapter not to affect validity of contracts, etc.) of CA 2013. Today, we learn the provisions of section 393A of the Companies Act 2013. The amended provision of section 393A is effective for the financial year 2020-21 onwards.
In this article, you will learn detail of the provisions of section 393A of the Companies Act 2013 Bare Act read with the relevant Company Rules 2021 as provided by Ministry of Corporate Affairs (MCA), Government of India.
| Name of Act | The Companies Act 2013 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Ministry of Corporate Affairs (MCA) |
| Number of Chapters | 29 |
| Number of Sections | 484 (470-43+57) |
| Number of Schedules | 7 |
| You are reading: | |
| Chapter No. | XXII |
| Chapter Name | Accounts of Companies |
| Section No. | 393A |
| Section Name | Exemptions under this Chapter |
| Monthly Updated Edition | Company Law PDF |
Section 393A: Exemptions under this Chapter
The Central Government may, by notification, exempt any class of—
- (a) foreign companies;
- (b) companies incorporated or to be incorporated outside India, whether the company has or has not established, or when formed may or may not establish, a place of business in India,
as may be specified in the notification, from any of the provisions of this Chapter and a copy of every such notification shall, as soon as may be after it is made, be laid before both Houses of Parliament.
[Section 393A was inserted w.e.f. 22.01.2021 by the Companies (Amendment) Act, 2020 vide MCA Notification S.O. 325(E) dated 22.01.2021]
Relevant information for section 393A
A new section 393A has been inserted with effect from 22nd January, 2021 for providing exemptions to foreign companies from sections 379 to 393. This section also provides exemptions under Chapter-XXII to companies incorporated outside India irrespective of its establishment of a place of business in India.
Foreign Company
As per clause (42) of section 2 of CA 2013, the term “foreign company” means any company or body corporate incorporated outside India which—
- (a) has a place of business in India whether by itself or through an agent, physically or through electronic mode; and
- (b) conducts any business activity in India in any other manner.
MCA Notification No. S.O. 3156(E) dated 5th August, 2021: In exercise of the powers conferred by section 393A of the Companies Act, 2013 (18 of 2013), the Central Government hereby exempts, from the provisions of sections 387 to 392 (both inclusive), the following:-
- (a) foreign companies;
- (b) companies incorporated or to be incorporated outside India, whether the company has or has not established, or when formed may or may not establish, a place of business in India,
insofar as they relate to the offering for subscription in the securities, requirements related to the prospectus, and all matters incidental thereto in the International Financial Services Centres set up under section 18 of the Special Economic Zones Act, 2005 (28 of 2005).