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A 'foreign company' under Section 2(42) is a company or body corporate:
AIncorporated outside India and conducting any business activity in India in any manner (including electronic mode)
BListed on a foreign stock exchange
COwned by foreign nationals
DHolding subsidiaries in foreign countries
Answer & Solution
Correct answer: A. Incorporated outside India and conducting any business activity in India in any manner (including electronic mode)
1. Section 2(42) — 'foreign company' means a company/body corporate incorporated outside India that has a place of business in India physically or through electronic mode, and conducts any business activity in India.
2. Even purely-electronic businesses can fall within the definition.
3. Hence (A).
_Source: ICAI BoS CA Inter Paper 2 — Companies Incorporated Outside India_