Question

Which of the following company is incorporated in a country outside India?

• A. Private Company
• B. Foreign Company
• C. Government Company
• D. None of the above

Answer 1

The correct option is B Foreign Company

Definition of Foreign Companies under the Act: The Act clearly defines a foreign company under Section 2(42). A foreign company is 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.
  

Hence, a foreign entity to be considered as a foreign company, has to fulfill both the criteria mentioned above, i.e., having a place of business in any manner specified above, and conducting any business activity in India.