What is a Foreign Company in India? Definition

A foreign company in India, as the name suggests, simply means, a company registered outside India, having a place of business in India.

Definition of Foreign Company under the Companies Act, 2013

In accordance with section 2(42) of the Act, “foreign company” means any company or body corporate incorporated outside India which— (a) has a place of business in India whether by itself or through an agent, physically or through electronic mode; and (b) conducts any business activity in India in any other manner.

A slightly different meaning of Foreign Company under Section 234

For the purposes of sub-section (2) of section 234 of the said Act, the expression “foreign company” means any company or body corporate incorporated outside India whether having a place of business in India or not.

The provisions of sub-section (2) of section 234 of the said Act mainly talks about merging of a foreign company with an Indian company with the prior approval of the Reserve Bank of India or vice versa.

Chapter XXII Companies Incorporated Outside India

Special provisions for foreign companies have been prescribed under Chapter XXII of the Companies Act, 2013 (Sections 379 to 393). Refer the said sections for detailed provisions.