A company is said to be a resident in India in any previous year, if it is an Indian company (registered under the Companies Act) or during that year its place of effective management is in India.
As per the Finance Act, 2015, with effect from 1st April, 2016 a company is said to be resident in India in any previous year, if:
(i) it is an Indian company; or
(ii) its place of effective management in that year is in India.
In case the place of effective management (POEM) is located outside India, then the residential status of such company shall be that of a foreign company.
A Company registered in India is an Indian Company. An Indian Company is the one registered in India under the Companies Act of 1956. Indian Company is always treated as Resident in India.
