MCA centralises registration of foreign firms

The Corporate Affairs Ministry (MCA) has mandated that all foreign companies’ incorporation would be handled by the Central Registration Centre (CRC) at New Delhi.   

The new centralised regime — which was earlier handled by Registrar of Companies — will come into effect from September 9.  

The latest move, which indicates an expansion in the scope of the CRC, will streamline and centralise the registration process for foreign companies. The CRC was set up in 2016 to expedite the incorporation process of companies, both Indian and foreign. 

Hitherto, the  Registrar of Companies (RoCs) played a critical role in the incorporation activity, said company law experts. 

As on March 31, 2024, the total number of foreign companies registered in the country were 5,164 with 66 companies having been registered in the last quarter of the previous year. 

Experts’ take 

Anjali Malhotra, Partner- Regulatory, Nangia & Co LLP, said this MCA move to amend the Companies (Registration of Foreign Companies) Rules, 2014 will centralise the registration process for foreign companies. 

“The centralisation aims to streamline the registration process and enhance the efficiency and consistency in handling registrations,” she said. 

Published in Hindu Business Line