Mar. 29 – The Ministry of Corporate Affairs informed the Upper House that, under the Companies Act (1956), there is no precise provision for compulsory registration of foreign companies engaged in online business practices. Keeping in view the present scenario which has been witnessing a large number of business transactions through the electronic mode, the Indian government has proposed to adapt the definition of the term, “foreign company,” under the Companies Bill (2011) to provide for effective regulation of such entities.
Clause 2(42) of the Bill defines the term “foreign company” to mean any company or corporate body incorporated outside of India which:
- Has a place of business in India whether by itself or through an agent, physically or through electronic mode
- Conducts any business activity in India in any other manner