Foreign Subsidiary Company Compliance

Mandatory compliances for foreign subsidiary company in India are as follows -

• Filing Form FC-1 – Form FC-1 is filed by the subsidiary of a foreign company within 30 days after establishment and selection of business place in India. The form should be certified or authorized by RBI or other regulatory bodies in India.
• Financial Statements – As per provision & regulations given in the schedule 11 of the Indian companies’ act 2013, every foreign subsidiary company active in India must prepare financial statements of its Indian business operations. These financial statements should be filed with registrar of companies (ROC) within 6 months from the end of the financial year of the foreign company. These financial statements must include the following information –
  • Statement of repatriation of earnings & profits
  • Statement connected with related party transactions
  • Statement of funds transfer involving concerned Indian subsidiary and any other companies or related parties of the holding foreign company.
• Foreign subsidiary accounts – Every foreign subsidiary company should examine & verify their books of accounts by a practicing Chartered accountant of India.
• Filing Form FC-3 – Form FC-3 is filed by foreign subsidiary company with registrar of companies (ROC) to provide details about the place of business & the financial records of the company.
• Annual return – Every foreign subsidiary company has to mandatorily file annual returns in form FC-4 within 60 days from the end of its financial year. In addition to it, all documents distributed by subsidiary in India also need to be submitted to the ROC.
• Validation/Authentication of the translated documents – All company related documents by subsidiary to ROC must be in English and all translated documents must be validated by a lawyer practicing in India.
• Compliances under GSTN & income tax department.
• Other annual & periodic compliances with ROC and other regulatory authorities.