A Company has a separate legal entity or a legal personality and registered under the Companies Act and it is governed by the Company Law or Corporate Law. Since a company assumes its own personality, the rights and duties of a company are different from those enjoyed by the members of the company. The shareholders of a company are not its proprietors, but mere suppliers of capital. A company can sue and be sued on its own name.
A Company is an Indian Company or where in a year, the control and management of the whole of its affairs are situated in India and also registered under Indian Companies Act 1956.
A company is said to be resident in India in any previous year, if—
(i) Indian Company is always resident in India.
(i) It is an Indian company or registered under Indian Companies act 1961.
(ii) During that year, the control and management of its affairs is situated wholly in India.
In case of foreign company
A foreign company is resident in India only if, during the previous year, control and management of its affairs is situated wholly in India.
A Foreign company is treated as Non – resident if, during the previous year, control and management of its affairs is either wholly or partly situated out of India.