Foreign Subsidiary Company Compliances
Like all those companies located in India and owned & managed by Indian people and entities, the India-based subsidiary companies of foreign people and entities also compulsorily require to maintain strict and perfect compliances with all concerned Indian regulatory/Governmental bodies and authorities. However, the subsidiaries of foreign companies located in India essentially require to make some additional compliances, as compared to those required from Indian-owned companies. This webpage gives very useful information about the foreign subsidiary company compliances under various relevant Indian regulatory and Governmental bodies and authorities. Naturally, these compliance services for a foreign subsidiary company in india, fall under the broad categories of the annual, periodic, and event-based compliances.
In general, based upon the type of a company and its incorporation, industry, magnitude of employees, and the annual sales turnover, the subsidiary of a Foreign Company [as defined under section 2(42) of the Indian Companies Act, 2013] needs to maintain all mandatory compliances under many or all of the following Acts and Legal Statutes in India:
- Indian Companies Act of 2013, and all Rules and Regulations related with this Act
- Indian Income Tax Act, 1961
- Foreign Exchange Management Act (FEMA), 1999
- Compliances related with Transfer Pricing
- Indian Goods & Services Tax (GST), effective since July 01, 2017
- Compliances under SEBI's Rules and Regulations (The Securities and Exchange Board of India)
- Compliances with RBI (The Reserve Bank of India)
- Compliances with the Regulations of ESI and EPF
- Compliances with various relevant Legal Acts and Statutes (such as Corporate and Commercial Laws, Maritime & Admiralty Laws, Intellectual Property Laws, Labor & Employment Law, Environmental Law, and so on)
- And, necessary annual and periodic compliances under other Regulatory or Governmental Authorities.
Here, it may also be noted that non-compliance or delayed compliance under the concerned regulatory authorities invites fines, penalties, and even imprisonment. Hence, proper, perfect, and punctual compliances with the relevant authorities are firmly recommended for maintaining hassle-free, legally secure, and prestigious businesses in India (or anywhere in the world). Extending the full gamut of legal services for incorporation, management, and growth of all types of companies in India, our Delhi-based and internationally renowned law firm also offers a rather wide range of secretarial compliances as an ancillary segment of our legal services, to help all companies and firms located/doing business in India, pertaining to Indian and foreign people and companies. So far, hundreds of foreign companies active in diverse economic sectors in India, have been benefited lavishly through our expert and efficient services for foreign company compliance in india, which are located in cities across India.
Compliance Services for a Foreign Subsidiary Company in India
This section deals with some most common and significant mandatory compliances to be made by the subsidiaries of foreign companies situated/active in India.
- Filing Form FC-1: It is to be filed within Thirty days, counted from the establishment of a selected place of business in India by the subsidiary of a foreign company. This form must be accompanied by any required certification/authorization by the RBI or other regulatory bodies in India.
- Financial Statements: Any duly registered subsidiary active in India of a foreign corporation, must prepare perfect financial statements related with its Indian business operations in accordance with the provisions and regulations given in the Schedule III to the Indian Companies Act, 2013. To be filed with the concerned ROC within Six Months counted from the end of the financial year of the foreign company, these financial statements must accompany the following pieces of information/statement:
- Statements connected with the Related Party Transactions (RPTs)
- Statement of repatriation of Earnings and Profits
- Statement of the Transfer of Funds (including dividends if any) involving this Indian subsidiary and any other companies/related parties of the holding foreign company.
- Audit of the Accounts of the Foreign Subsidiary: The India-based subsidiary of a foreign company, must get its accounts related with its business operations in India properly arranged as per the Section 381(1)(a) of the Companies Act of 2013 as well as the Rule 4 of the Companies (Registration of Foreign Companies) Rules of 2014, and then meticulously examined and verified by a practicing Chartered Accountant in India.
- Filing Form FC-3: It is to be filed with relevant ROC in India, giving details of the places of business together with the financial records of the company.
- Annual Return: The India-based subsidiary company must file the annual return in Form FC-4 within Sixty days from the end of its financial year. Again, all documents distributed by the subsidiary in India, need also to be submitted to the ROC having jurisdiction over New Delhi.
- Validation/Authentication of the Translated Documents: All company-related documents submitted by the subsidiary to the relevant ROC in India, must be in English. Also, all translated documents by the company, must be substantiated by a competent lawyer practicing in India.
- Compliances under the Income Tax Department and GSTN
- And, various other annual and periodic compliances with ROC, and other regulatory authorities stipulated above.
Annual Compliance Filing AMC for Foreign Subsidiary Company
Available are our expert, efficient, and cost-effective services for the Annual Mandatory Compliances (AMCs) of the Foreign Subsidiary Company located and active anywhere in entire India, and belonging to Indian or Foreign Nationals.