Chapter XIV - Inspection, Inquiry and Investigation
Section 228
Section 228: investigation, etc., of foreign companies
Section 228 is a one-sentence provision: the inspection, inquiry and investigation powers of Chapter XIV apply mutatis mutandis to foreign companies.
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This article is for general information. Refer to the Companies Act, 2013 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
The provisions of this Chapter shall apply mutatis mutandis to inspection, inquiry or investigation in relation to foreign companies.
Introduction
A foreign company is defined in section 2(42). Section 228 commenced on 1 April 2014 under S.O. 902(E). The India Code text shows no amendment and matches the 2013 Gazette.
Key takeaways
Same chapter applies
The provisions of Chapter XIV apply to inspection, inquiry or investigation in relation to foreign companies.
Mutatis mutandis
They apply with the changes needed to fit a foreign company, rather than word for word.
Relevance
Foreign companies with a place of business in India should expect the same inspection and investigation powers as Indian companies.
What the section says
The provisions of Chapter XIV, which cover inspection, inquiry and investigation (sections 206 to 229), apply mutatis mutandis to inspection, inquiry or investigation in relation to foreign companies.
Practical preparation
Keep the books and records of the Indian place of business ready for inspection; nominate a person in India who can respond to the Registrar or an inspector; and treat notices under Chapter XIV with the same urgency as an Indian company would.
Procedure, forms, fees and timelines for applications under this provision are set out in rules made under the Act and in the Tribunal’s procedure; check the current text of those rules, and any exemption notification for your class of company, before relying on this guide.
Practical checklist
Do
- Keep Indian books and records organised and accessible.
Avoid
- Do not assume that being incorporated outside India places a foreign company outside Chapter XIV.
Illustrative example
Hypothetical: inspection of a branch office
A foreign company with a branch in India receives a notice from the Registrar seeking books and explanations.
Apply Chapter XIV
Section 228 means the same inspection and inquiry provisions apply, adapted to a foreign company.
Respond
The branch produces the requested records through its authorised person in India.
Outcome
- The foreign company is treated in substance like an Indian company for Chapter XIV purposes.
Glossary
- Foreign company
- A company or body corporate incorporated outside India that has a place of business in India or conducts business activity in India in any other manner, as defined in section 2(42).
- Mutatis mutandis
- With the necessary changes made.
Frequently asked questions
Can the Central Government investigate a foreign company?
Yes. Section 228 applies Chapter XIV to inspection, inquiry or investigation in relation to foreign companies, with the necessary changes.
Does section 228 create new powers?
No. It extends the existing Chapter XIV provisions to foreign companies.
Need help applying this provision to your situation?
Contact BizeneedLast updated 12 October 2026