At least 53 Chinese foreign companies established a place of business in India, and these firms maintained no specific data about business activities related to providing loans through apps, said the Corporate Affairs Ministry on December 11.

The data was revealed by Minister of State for Corporate Affairs Rao Inderjit Singh in a written reply to the Lok Sabha on Monday. “However, no specific data is maintained about the details of business activities related to providing loans through apps by these companies,” he added. A foreign company incorporated outside India can establish a place of business in the country after complying with the requirements of RBI regulations and other sectoral requirements, wherever applicable. The firm is to seek registration with the Registrar of Companies (RoC) (Delhi & Haryana) under Section 380 of the Companies Act, 2013 within 30 days of the establishment of such an office. Singh, while replying to another query, said there is no definition of the term ‘shell company’ under the Act. As per the act, the Registrar of Companies can remove a company’s name from the official records on various grounds, which may include the company’s failure to commence its business within one year of incorporation. If the company is not conducting any business or operation for a period of two immediately preceding financial years, a RoC can remove its name from the official records. Also, a company’s name can be struck off if it has not made any application within such period for obtaining the status of a dormant company. “The Registrar of Companies removes name after following the due procedure given in the rules. During the period from 1/4/2021 to 28/11/2023, a total of 1,55,217 companies have been struck off under section 248 (1) of the Companies Act, 2013,” Singh said. Livemint tops charts as the fastest growing news website in the world to know more.