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Corp affairs ministry says 53 Chinese foreign companies established place of biz in India

There is a lack of particular data maintained regarding the facts of these companies' business activities pertaining to lending through apps, according to Monday's announcement by the corporate affairs ministry, which states that 53 Chinese overseas enterprises have set up shop in India. Once they've met all sectoral and RBI standards, an international company (one that was formed outside of India) can set up shop in the nation.

According to Section 380 of the Companies Act, 2013, it is required to apply for registration with the Registrar of Companies (RoC) (Delhi & Haryana) within 30 days of the office's formation.

Rao Inderjit Singh, India's Minister of State for Corporate Affairs, stated in a Monday written reply to the Lok Sabha that 53 foreign enterprises from China have set up shop in the country.

"However, no specific data is maintained about the details of business activities related to providing loans through apps by these companies," according to him.

The minister also declined to provide a definition of "shell company" in response to a different question.

For several reasons, including the failure to begin operations within one year of incorporation, a RoC can remove a company's name from the official records.

According to Singh, another possible explanation is that the company has been inactive for at least two consecutive fiscal years, during which it has failed to file its financial statements and annual returns.

The failure to apply for dormant business status within the specified period can also result in the removal of a company's name.

After the proper procedure outlined in the rules is followed, the name is removed by the Registrar of Companies. In accordance with section 248 (1) of the Companies Act, 2013, a grand total of 1,55,217 entities were disbanded between 1/4/2021 and 28/11/2023, according to Singh.

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