Section 368 of CA 2013 : Section 368: Vesting Of Property On Registration
CA 2013
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Explanation using Example
Imagine a foreign company called 'TechGlobal Ltd.' that has been operating in India through a branch office. The company decides to establish a fully-fledged subsidiary in India to handle its operations more effectively. This subsidiary is named 'TechGlobal India Pvt. Ltd.' and is registered under the Companies Act, 2013.
According to Section 368 of the Companies Act, 2013, once 'TechGlobal India Pvt. Ltd.' is registered, all the assets that were previously owned by 'TechGlobal Ltd.' in India, such as office furniture, computers, intellectual property rights, and any real estate, automatically transfer to the new Indian entity. 'TechGlobal India Pvt. Ltd.' now holds all rights and interests in these assets as if the newly formed company had owned them from the start.