Registration of foreign companies on decline in India since 2020: Govt data

The government on Tuesday said 339 foreign companies have been registered in the country in the last five years and the registration of such firms has been on the decline since 2020.

This year, five foreign companies have been registered - 1 each in Andhra Pradesh, Delhi, Kerala and two in Tamil Nadu, official data shared by Minister of State for Corporate Affairs Harsh Malhotra with the Rajya Sabha showed.

Under Section 2 (42) of the Companies Act, 2013, a foreign company means any 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.

“Thus, foreign companies are incorporated outside India and they have a place of business in India. These companies are set up with foreign capital,” he said.

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While 90 foreign companies were set up in 2020, the number came down to 75 in 2021 and 64 in 2022. The count reduced to 57 in 2023 and 53 in 2024.

On whether certain foreign companies/ entities are conducting online activities without getting themselves registered, Malhotra said no such information is available under MCA21 registry.