Parliament Question: Relocation of foreign companies

GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS RAJYA SABHA UNSTARRED QUESTION NO. 371 ANSWERED ON TUESDAY, 03rd FEBRUARY, 2026 Relocation of foreign companies 371 Shri Saket Gokhale: Will the Minister of Corporate Affairs be pleased to state: (a) the number of foreign-owned companies that have closed operations or relocated their registered offices out of the country in the last five financial years; (b) the primary reasons cited by these companies for their relocation or exit, as recorded by the Registrar of Companies (RoC); and c) the details of regulatory and compliance hurdles identified as deterrents by foreign investors and companies operating in the country and the steps taken to address them? ANSWER Minister of State in the Ministry of Corporate Affairs; Minister of State in the Ministry of Road Transport and Highways (Shri Harsh Malhotra) (a): Foreign company is defined under section 2 (42) of the Companies Act, 2013 which means any company or body corporate incorporated outside India which has a place of business in India whether by itself or through an agent, physically or through electronic mode; and conducts any business activity in India in any other manner. Thus, foreign companies are incorporated outside India and they have a place of business in India. These companies are set up with foreign capital and can invest in India either by opening place of business in India or by incorporating their subsidiaries in India. The number of foreign companies that have closed operations in India in the last 05 financial years are as under:- Financial Year Total Foreign Companies 2020-2021 121 2021-2022 104 2022-2023 63 2023-2024 68 2024-2025 63 Total 419(b): The reason for closure of a foreign company is a business decision peculiar to each company which may include factors such as completion of project of parent Company, expiration of validity of permission / licence etc. granted by the Reserve Bank of India, not starting its operations 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, etc. (c): The Ministry strives to provide quality services to all corporates in the implementation of the Companies Act, 2013. A user friendly MCA21 portal has also been created for easy and efficient filing of returns by companies and LLPs. During the period FY 2020-21 to FY 2025-26 (up to December, 2025), 10625 foreign companies have registered their Indian subsidiary companies. *****