THE MINISTER OF CORPORATE AFFAIRS (SHRI SALMAN KHURSHID)
(a) to (e): Foreign companies are companies incorporated outside India which establish their
place of business in India after obtaining permission from Reserve Bank of India (RBI).
Thereafter, they have to file registration particulars regarding such place of business with
the Registrar of Companies, Delhi within 30 days from such permission. Only few provisions of
the Companies Act, 1956 are applicable to the place of business of such foreign companies. No
such violation requiring investigation has been brought to the notice of this Ministry.
However, while doing their business in India, foreign companies have to comply with the
guidelines of RBI and other applicable laws such as the Foreign Exchange Management Act, 1999,
etc., and failure to make the compliance of relevant guidelines/ laws is actionable.