# Electronic Mode & Scope of Foreign Company Business
## Why this matters
A foreign company is not just one with a physical office in India. The Companies Act, 2013 deliberately captures companies that conduct business in India electronically, even without setting foot here. This is the gateway question — if 'electronic mode' is triggered, the company falls within Chapter XXII and must comply with sections 380–393.
## What counts as 'Electronic Mode'
Electronic mode covers carrying out any of the following activities — whether or not the company has a physical presence in India:
| # | Activity |
|---|---|
| (i) | B2B and B2C transactions, data interchange, other digital supply transactions |
| (ii) | Offering / inviting / accepting deposits or subscriptions in securities in India or from Indian citizens |
| (iii) | Financial settlements, web-based marketing, advisory and transactional services, database services & products, supply chain management |
| (iv) | Online services — telemarketing, telecommuting, telemedicine, education, information research |
| (v) | All related data communication services |
The mode of delivery is irrelevant — e-mail, mobile devices, social media, cloud computing, document management, voice or data transmission, etc.
## Key takeaway
If an overseas entity touches India through any of the above channels, it triggers foreign-company status — physical presence is not required.
## Examples — when is a company a 'Foreign Company'?
1. Indian parent with foreign subsidiary providing satellite services — the foreign subsidiary rendering services to the Indian group is a foreign company.
2. Airline operating through booking agents in India — agency presence is enough.
3. Branch office of a foreign shipping company (set up after RBI approval) — a branch office is treated as a reflection of the parent's office and is a 'place of business' in India.