Lok Sabha Question No. 1920 (UNSTARRED), answered on 2022-12-19
Subject: Closure of Foreign Companies
Ministry: CORPORATE AFFAIRS
Asked by: Lavu Sri Krishna Devarayalu

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA UN-STARRED QUESTION NO. 1920

## ANSWERED ON MONDAY, 19 th  DECEMBER 2022/ AGRAHAYANA 28, 1944 (SAKA)

## CLOSURE OF FOREIGN COMPANIES

## 1920. SHRI LAVU SRI KRISHNA DEVARAYALU:

Will the Minister of CORPORATE AFFAIRS कारपोरेट कार्य मंत्री be pleased to state:

- (a) whether it is true that as many as 2,783 foreign companies have ceased their operations in India between  2014  and  November,  2021  which  includes  major  companies  like  Ford  and  Harley Davidson;
- (b) if so, the reasons for the same and the steps taken by the Government to incentivise important foreign companies to start their operations in India;
- (c) whether ineffective quality control which has dented perception of ease of doing quality business in India has contributed towards the reduction in foreign companies;
- (d) if so, the details thereof along with the steps taken by the Government to improve quality control and to bring it in line with international standards; and
- (e)  whether  only  3291  foreign  companies  were  active  out  of  5068  companies  registered  in  the country until September 2022 and if so, the details thereof and the reasons therefor?

## ANSWER

THE  MINISTER  OF  STATE  (INDEPENDENT  CHARGE)  OF  THE  MINISTRY  OF STATISTICS  AND  PROGRAMME  IMPLEMENTATION;  MINISTER  OF  STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF PLANNING AND MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS .

## (RAO INDERJIT SINGH)

- (a) Information  about  'ceasing  of  operations'  is  not  maintained  by  this  Ministry.    Foreign companies are required to register their 'place of business' in India as also ceasing of their 'place of business' in India with  Registrar of Companies, Delhi.  Accordingly,  as intimated by Registrar of Companies (ROC), Delhi 877 foreign companies have ceased their 'place of business' in India between  2014  to  November  2021.      Ford  and  Harley  Davidson  have  not  closed  their  place  of business in India.
- (b) to (d) The Ministry strives to provide quality services to all corporates in the implementation of the Companies Act, 2013. A user friendly portal (MCA 21) has also been created for easy and efficient filing of return by companies and LLPs. As per the data base maintained by the Ministry the number of companies incorporated has increased from 1,22,721 in 2019-20 to 1,67,076 in 202122 and 1,15,229 this year till November, 2022. Overall there has been marked improvement in the indicators relating to ease of doing business.
- (e) Yes, there are 3291 number of foreign companies are having active status out of 5068 foreign companies having registered their place of business in India till September 2022.  The state-wise details of having place of business of foreign companies in India is enclosed as Annexure - I.

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## TOTAL NUMBER OF ACTIVE FOREIGN COMPANIES

| State          |   No. of foreign Companies having place of business in India |
|----------------|--------------------------------------------------------------|
| Andhra Pradesh |                                                           47 |
| Assam          |                                                            2 |
| Bihar          |                                                            4 |
| Chandigarh     |                                                            1 |
| Chhattisgarh   |                                                            1 |
| Delhi          |                                                         1426 |
| Goa            |                                                            4 |
| Gujrat         |                                                           52 |
| Karnataka      |                                                          250 |
| Haryana        |                                                          250 |
| Kerala         |                                                           28 |
| Madhya Pradesh |                                                            7 |
| Maharashtra    |                                                          798 |
| Manipur        |                                                            1 |
| Odisha         |                                                            9 |
| Puducherry     |                                                            1 |
| Punjab         |                                                            6 |
| Rajasthan      |                                                           15 |
| Tamil Nadu     |                                                          213 |
| Telangana      |                                                           39 |
| Uttar Pradesh  |                                                           73 |
| Uttarakhand    |                                                            4 |
| West Bengal    |                                                           60 |
| TOTAL          |                                                         3291 |