Parliament Question: Closure of Foreign Business Offices

GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS LOK SABHA STARRED QUESTION NO. *216 ANSWERED ON MONDAY, AUGUST 3, 2026 CLOSURE OF FOREIGN BUSINESS OFFICES QUESTION *216: Smt. Manju Sharma:

Will the Minister of CORPORATE AFFAIRS कारपोरेट काय (cid:91) मं(cid:287)ी

be pleased to state:

(a) whether it is a fact that many foreign companies and their subsidiaries with registered functional offices in different parts of the country have closed their business offices in the country;

(b) if so, the details thereof and the reasons behind the closure of business activities/offices by the said companies and their subsidiaries during the last five years;

(c) whether the Government has any data regarding the total number of foreign companies and their subsidiaries currently carrying out their business activities in the country, if so, the details thereof; and

(d) the total number of Indian employees currently working in the said companies? ANSWER The Minister of Finance & Corporate Affairs ((cid:874)व(cid:215)त और कॉप(cid:574)रेट मामल(cid:585) के मं(cid:287)ी) (SMT. NIRMALA SITHARAMAN) (cid:302)ीमती (cid:467)नमल(cid:91) ा सीतारामन

(a) to (d): A statement is laid on the Table of the House.STATEMENT REFERRED TO IN REPLY TO PART (a) TO (d) OF LOK SABHA STARRED QUESTION NO. *216(16th POSITION) FOR 3RD AUGUST, 2026 ASKED BY SMT. MANJU SHARMA HON’BLE MEMBER OF PARLIAMENT REGARDING CLOSURE OF FOREIGN BUSINESS OFFICES.

(a) & (b): A “Foreign Company” has been defined under sub-section (42) of

Section 2 of the Companies Act, 2013. A “foreign company” means any company or body corporate incorporated outside India which (a) has a place of business in India whether by itself or through an agent, physically or through electronic mode; and (b) conducts any business activity in India in any other manner.

Foreign companies register under Section 380 of the Companies Act, 2013 as a Branch Office, Liaison Office and Project office. Many foreign body corporates also have Indian subsidiaries which are incorporated in India under section 7 of the Companies Act, 2013. The details of Foreign Companies as well as Indian subsidiaries of foreign body corporates registered and who have opted for closure during the last five financial years are at Annexure.

The closing of operations is a matter of commercial business decision. It depends on a host of factors such as viability of operations, sectoral strategy, global priorities, market size, capital and resource allocation within the company as well as the decision of a particular business entity whether to operate in different geographical areas or not.

(c) As of 30.07.2026, 3313 foreign companies and 19,881 number of companies incorporated in India whose holding company is incorporated outside India are carrying out their business activity in the country.

(d) The number of Indian nationals working in foreign companies and subsidiaries is not maintained with the Ministry. *******Annexure Referred to reply to part(a) and (b) of Lok Sabha Starred Q. No. 216 for

03.08.2026 Year Number of Number of Number of Number of Foreign foreign companies companies Companies companies incorporated incorporated in that have registered in India India whose registered under Section whose holding company under 380 of the holding is incorporated

Section 380 Companies Act, company is outside India that of the 2013 that have incorporated have closed their Companies closed their outside place of business Act, 2013 place of India in India business 2021-22 74 104 1,829 300 2022-23 51 63 1,832 134 2023 -24 66 68 2,112 242 2024-25 59 63 2,013 253 2025-26 102 84 2,191 294