Just like all companies and firms located in India and run and managed by Indian entrepreneurs and entities, the subsidiaries of the foreign nationals and companies active anywhere in India are also compulsorily required to make perfect and punctual compliances with all concerned Indian regulatory authorities. Again, it is also true that the India-based subsidiaries of foreign companies need to perform many additional compliances with Indian regulatory authorities, in order to remain legally perfect and secure. To help the subsidiaries of foreign companies, informed on this webpage are our expert and responsible services for the foreign subsidiary company compliances in India with various regulatory and Governmental bodies and authorities concerned.
In general, an India-based subsidiary of any Foreign Company [as defined under section 2(42) of the Indian Companies Act, 2013] may need to perform the following three categories of statutory compliances with Indian regulatory authorities --- periodic compliances, annual compliances, and event-based compliances. Also, the types and nature of these compliances do depend on the type of company and its incorporation, industry type, its market size, the number of its employees, and its annual sales turnover. Now, particularly since promulgation of the new Indian Companies Act of 2013 and all amendments made thereto so far, the compliance regime in India has been made very strict and rigorous, and advocates for heavy fines, penalties, and punishments (including imprisonment) in the cases of delayed compliances or failures in statutory compliances.
Our internationally prominent full-service law firm located in Delhi provides the full gamut of compliance services to all types of companies located and active in India, which may run and managed by Indian or foreign companies, as a part of our ancillary legal services. These services are readily and cheaply available on half-yearly or yearly basis. The wholly-owned subsidiaries and other types of entities established and managed in India by foreign companies are also covered under these services equally well.
Compliances for Wholly-Owned Subsidiary of Foreign Company under Companies Act, 2013
In general, the annual, periodic, and event-based foreign company compliances under companies act 2013 and other legal Acts and Statutes (stipulated below) may relate to many, most, or all of the following compliances in India:
1. Form FC-1: To be filed within Thirty days of the establishment of the subsidiary anywhere in India, duly accompanied by any necessary certification/authorization required from RBI or other regulatory authorities.
2. Financial Statements: These should contain comprehensive information about its Indian business operations demanded by the Schedule III to the Companies Act of 2013, and are to be filed within Six months of the end of the financial year of the foreign company.
3. Form FC-3: Containing details of the business places and the financial records of the company, this Form is to be filed with the concerned ROC.
4. Audit of Accounts of the India-based Subsidiary Company: The accounts related with business operations and transactions in India, should be arranged, checked, and verified by a practicing Chartered Accountant as per the provisions and rules given in the Section 381(1)(a) of the Companies Act of 2013, and the Rule-4 of the Companies (Registration of Foreign Companies) Rules of 2014.
5. Annual Return in Form FC-4: This is to be filed with relevant ROC within Sixty days from the end of the financial year.
6. Authentication/Validation of Translated Documents: All company-related documents (translated or distributed) of the India-based subsidiary of the foreign company, must be in English, duly substantiated by a competent lawyer practicing in India.
7. Other Various Compliances under the concerned ROC
8. Compliances with Income Tax Departments, GSTN, and so on.
9. Other Compliances as per all rules and regulations associated with the Companies Act of 2013
10.Compliances under Secretarial Standards I & II
11.Compliances with RBI, FEMA, Transfer Pricing, FDI Authorities, etc.
12.Compliances under all rules and regulations associated broadly with SEBI
13.Compliances with ESI and PF Regulations
14.Compliances under other concerned legal Acts and Statutes, such as Corporate and Commercial Laws, Maritime & Admiralty Laws, Intellectual Property Laws, Labor & Employment Law, Excise and Customs, Environmental Law, and so on.
15.And, other compliances demanded or deemed necessary.
Created & Posted by Aashima
Accountant at TAXAJ