Total 877 foreign companies have ceased their ‘place of business’ in India between 2014 to November 2021.
New Delhi, March 28,2023: Total 877 foreign companies have ceased their ‘place of business’ in India between 2014 to November 2021.
The Ministry of Corporate Affairs in a written reply in Rajya Sabha on Tuesday said that Ford and Harley Davidson have not closed their place of business in India.
“Information about ‘ceasing of operations’ is not maintained by this Ministry. Foreign companies are required to register their ‘place of business’ in India as also ceasing of their ‘place of business’ in India with Registrar of Companies (RoC), Delhi under the provision of Section 380 of the Companies Act, 2013. Accordingly, as intimated by RoC, Delhi, 877 foreign companies have ceased their ‘place of business’ in India between 2014 to November 2021. Ford and Harley Davidson have not closed their place of business in India,” said the written reply by Minister of State for Corporate Affairs, Rao Inderjit Singh on Tuesday.
The Ministry informed that the closure of operations of a foreign company is a business decision peculiar to each company which may include factors such as cessation of operation of branch office, expiration of validity of permission or licence, etc granted by the Reserve Bank of India, not starting its operation due to change of business policy of the parent company, foreign company establishing a private limited company in India, closure of parent company, management’s decision, closure of liaison office/branch office in India on completion of project of parent company etc.
Quality control does not fall within the purview of the Ministry of Corporate Affairs (MCA). However, the Ministry strives to provide quality services to all corporates in the implementation of the Companies Act, 2013. A user-friendly portal (MCA 21) has also been created for easy and efficient filing of returns by companies, LLPs and foreign companies, said the reply.