Lok Sabha Question No. 2363 (UNSTARRED), answered on 2022-08-01
Subject: Active Foreign Companies
Ministry: CORPORATE AFFAIRS
Asked by: Riti Pathak, Navneet Ravi Rana, Jugal Kishore Sharma, Geeta Kora, Ramesh Chander Kaushik, Dileshwar Kamait, Jyotirmay Singh Mahato, Chandan Singh

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

UN-STARRED QUESTION NO. 2363

ANSWERED ON MONDAY, AUGUST 1, 2022/ SRAVANA 10, 1944 (SAKA)

## ACTIVE FOREIGN COMPANIES

## QUESTION

2363. SHRIMATI RITI PATHAK:

SHRIMATI NAVNEET RAVI RANA:

SHRI JUGAL KISHORE SHARMA:

SHRIMATI GEETA KORA:

SHRI RAMESH CHANDER KAUSHIK:

SHRI DILESHWAR KAMAIT:

SHRI JYOTIRMAY SINGH MAHATO:

SHRI CHANDAN SINGH:

Will the Minister of CORPORATE AFFAIRS

be pleased to state:

- (a) whether the number of active foreign companies in India is only 3335 whereas the registered foreign companies in India are around 5050;
- (b) if so, whether the Government proposes to cancel the registration of rest
- of the inactive companies and if so, the details thereof;
- (c) whether 1715 registered foreign companies are shell companies and if so, whether these companies have been investigated;
- (d) if so, the details and the outcome thereof; and
- (e) if not, the reasons therefor?

## ANSWER

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):  There   are  3291  number  of  foreign  companies  having  active status. Foreign companies are registered by Registrar Of Companies (ROC),Delhi after approval is given by RBI. There are 5068 Foreign Companies registered as on 27.07.2022. (b): No cancellation of registration of inactive foreign companies is under consideration by The Ministry of Corporate Affairs (MCA). (c) to (e): Registered Foreign Shell companies are not defined under the provision of the Companies Act, 2013 (the Act). However, Foreign companies are defined under the provisions of section 2(42) of the Act, according to which a company or body corporate incorporated outside India which has a place of business in India whether by itself or  through  an  agent,  physically  or  through  electronic  mode  and conducts  any  business  activity  in  India  in  any  other  manner  is  a foreign company. Such companies or body corporate incorporated outside India   can close  their   places  of  business   from  India  due  to  reason  such  as cessation of operation of branch office/ Rental Agreement in India, expiration  of  validity  granted  by  the  Reserve  Bank  of  India,  could never  start  its  operation  due  to  change  of  business  policy  of  the parent  company,  Foreign  Company has  established  private  limited company in India, closure of Parent Company, due to managem ent's decision, due to heavy loss and lack of adequate market, the closure of liaison office/branch office in India, and on completion of project of  parent  Company  and  has  decided  to  discontinue  its  business operations  etc. There are 1777 foreign companies who have closed their place of business in India.

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