# Definition of a Foreign Company — Section 2(42)
## Statutory Definition
A foreign company means any company or body corporate incorporated outside India which —
1. has a place of business in India — whether by itself, or through an agent, physically or through electronic mode; AND
2. conducts any business activity in India in any manner.
Both conditions must be satisfied cumulatively.
## Meaning of 'Electronic Mode' (E-mode)
Under Rule 2(1)(c) of Companies (Registration of Foreign Companies) Rules, 2014, e-mode covers carrying on the following activities by electronic means (whether the server is in India or outside):
- Business-to-business and business-to-consumer transactions, data interchange or other digital supply transactions
- Offering to accept deposits or inviting deposits / subscription to securities (from Indian citizens / residents)
- Financial settlements, web-based marketing, advisory and transactional services, database services and products
- Supply chain management
- Online services — telemarketing, telecommuting, telemedicine, education and information research
- All related data communication services (e-mail, SMS, social media, mobile devices, etc.)
## Important Carve-out
Offering of securities, subscription thereof, or listing of securities on a stock exchange (e.g., BSE/NSE) shall NOT be construed as e-mode for foreign companies. Thus a foreign company that merely lists on an Indian exchange does not automatically become a foreign company by virtue of e-mode.
## Visual Test
```
Incorporated outside India
│
▼
Has 'place of business' in India
(self / agent / physical / e-mode)
│
▼
Conducts business activity
│
▼
✓ FOREIGN COMPANY
```