Fees from foreign companies operating in India steadily declining

In FY17 the amount received from foreign companies through registration and other services fees saw a huge dip of 17.8%.

Fees from foreign companies operating in India steadily declining
A man holding a bundle of Rs 2,000 notes. Photo: Reuters
By Collin Furtado
Updated: Sat, Apr 08, 2017
11:55 am
Mumbai, ZeeBiz WebDesk
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The money received by the government from foreign companies operating in India has been declining steadily. The amount received from international companies through registration and other service fees during the last three financial years had been declining.

Note: 2017-18 amount till April 5, 2017

While the amount received by the government from foreign companies operating in India was Rs 12.16 crore in FY15, it declined by 3.5% to Rs 11.74 crore in FY16, said Arjun Ram Meghwal, Minister of State for Corporate Affairs in written reply to a question in Lok Sabha on Friday.

In FY17 the amount received from foreign companies through registration and other services fees saw a huge dip of 17.8% to Rs 9.96 crore, according to Ministry of Corporate Affairs. The ministry as of April 5 has received Rs 4.62 lakh for FY18 from foreign companies.

While the money received by the government from foreign companies has declined steadily, the number of foreign companies have been relatively the same. Though the State and Union Territory-wise number of registration of foreign companies declined from 157 in FY15 to 149 in FY16, there was growth in the registrations in FY17 to 161, said Meghwal.

Delhi has the maximum number of active foreign companies in India with 1,484 companies. It is followed by Maharashtra with 823 foreign companies with Mumbai being the financial capital, followed with Karnataka with 272 foreign companies with Bangalore being the IT hub. Haryana was next with 263 international companies registered in the state as it has become one the largest manufacturing hub in India.