The government has revealed that 339 foreign companies have been registered in India over the last five years, but the number of registrations has seen a consistent decline since 2020. In a report presented in the Rajya Sabha, Minister of State for Corporate Affairs Harsh Malhotra shared that only five foreign companies were registered in 2024. These registrations took place across various states: one in Andhra Pradesh, one in Delhi, one in Kerala, and two in Tamil Nadu.
Understanding Foreign Companies under Indian Law
As defined by Section 2 (42) of the Companies Act, 2013, a foreign company refers to any company or body incorporated outside India that has a place of business within India. This can be done directly or through an agent, either physically or electronically. These companies are typically set up with foreign capital.
Declining Trends in Foreign Company Registrations
While 90 foreign companies were registered in India in 2020, the numbers have significantly dropped in the subsequent years. In 2021, 75 foreign companies were registered, followed by 64 in 2022. The count further reduced to 57 in 2023 and only 53 in 2024.
No Information on Unregistered Online Activities
When asked about the possibility of foreign companies or entities conducting online activities in India without proper registration, Minister Malhotra clarified that no such information is available in the MCA21 registry.
