Referring to the provisions of the Companies Act, 2013, state as to when shall a company incorporated outside India be considered as a 'foreign company' within the meaning of the Companies Act, 2013. Also examining the p

As per section 2(42) of the Companies Act, 2013, "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. (i) In case, where a company incorporated outside India has a representative in India, who on behalf of the company receives orders from the customers, shall be treated as "foreign company" only if such company has place of business in India and conducts business activities. Merely having Representative in India will not be treated as having place of business in India. [(P.J Johnson vs. Astrofiel Armandorn, 1990 69 com cases 619 (Ker)] (ii) In case, company merely holds Board meetings or General meetings in India, the company shall not be treated as "foreign company", unless the company carries some business activity and has a place of business in India.