53 Chinese companies established place of business in India: Corporate affairs ministry

The corporate affairs ministry on Monday said there are 53 Chinese foreign companies that have established a place of business in India, but there is no specific data maintained about details of business activities related to providing loans through apps by these firms.

A foreign company (incorporated outside India) can establish a place of business in the country after complying with the requirements of RBI regulations and other sectoral requirements, wherever applicable.

Within 30 days of the establishment of such an office, it has to seek registration with the Registrar of Companies (RoC) (Delhi & Haryana) under Section 380 of the Companies Act, 2013.

In a written reply to the Lok Sabha on Monday, Minister of State for Corporate Affairs Rao Inderjit Singh said that as per information available, there are 53 Chinese foreign companies have established a place of business in India.

"However, no specific data is maintained about the details of business activities related to providing loans through apps by these companies," he added. To another query, the minister said there is no definition of the term 'shell company' under the Act.

An RoC can remove a company's name from the official records on various grounds, including that if the company fails to commence its business within one year of incorporation.

Another reason can be that the company is not carrying on any business or operation for a period of two immediately preceding financial years (has not filed their financial statements and annual returns for a continuous period of two immediately preceding financial years), Singh said.

Also, a company's name can be struck off if it has not made any application within such period for obtaining the status of a dormant company.

"The Registrar of Companies removes name after following the due procedure given in the rules. During the period from 1/4/2021 to 28/11/2023, a total of 1,55,217 companies have been struck off under section 248 (1) of the Companies Act, 2013," Singh said.

Catch the latest stock market updates here. For all other news related to business, politics, tech, sports, and auto, visit Zeebiz.com.