Foreign Company Registrations Witness Decline Over Five Years

The government reports a decline in foreign company registrations, with only 339 registered in five years. Numbers fell annually from 90 in 2020 to 53 in 2024. This year's registrants include companies in Andhra Pradesh, Delhi, Kerala, and Tamil Nadu. No data on unregistered online activities exists.

The government disclosed that 339 foreign companies have registered in the country over the past five years, marking a continuous decline in new registrations since 2020. According to data provided by Minister of State for Corporate Affairs Harsh Malhotra to the Rajya Sabha, only five foreign firms registered this year in Andhra Pradesh, Delhi, Kerala, and Tamil Nadu.

Under Section 2 (42) of the Companies Act, 2013, a foreign company is defined as any incorporated entity or corporate body outside India that maintains a business presence within the country, either directly or through agents, or via electronic means. These entities are primarily established with foreign investment capital.

The year-wise breakdown reveals a decrease from 90 new foreign companies in 2020 down to 75 in 2021, 64 in 2022, 57 in 2023, and 53 in 2024. Regarding inquiries about foreign entities potentially conducting unregistered online operations, Malhotra stated that no such information is recorded in the MCA21 registry.