3,552 foreign companies, subsidiaries closed in India between 2017-2022

A total of 3,552 foreign companies and subsidiaries of foreign companies have been closed in India between 2017 and 2022.

According to information provided by the Ministry of Corporate Affairs in a written reply in the Rajya Sabha on Tuesday, the closure of operations of a company is a business decision peculiar to each company which may be include factors such as cessation of operation of branch office, expiration of validity of permission or licence etc granted by the Reserve Bank of India, not starting its operation 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, closure of liaison office/ branch office in India on completion of project of parent Company.

The reasons for closure of subsidiaries of foreign companies are also similar, said the Ministry in reply.

On the question about "the total number of active foreign subsidiaries operating in the country," the Ministry replied: "There are 14,137 number of active foreign subsidiaries operating in the country."

--IANS

kvm/kvd