Regulation of Foreign Online Companies Under Proposed Law

It had come to the notice of the Government that certain foreign entities are conducting online activities in India without actually getting themselves registered. Giving this information in written reply to a question in the Rajya Sabha, Shri Sachin Pilot, Minister of Corporate Affairs, said that in order to regulate online activities of foreign companies which are presently not required to file registration documents with the Registrar and to better safeguard the interest of Indian Consumers and investors, the Companies Bill, 2012, Clause 2 (42) defining “foreign company” has widened the scope of foreign companies to include companies carrying out their activities in India through electronic mode. Further, provisions in respect of Inspection, Inquiry and Investigation proposed in Clause 206 to 229 of the proposed Bill shall also be applicable to foreign companies, including those that may be operating through electronic mode.

KKP/sg

(Release ID :95356)