RBI Compliance for Foreign Subsidiary

RBI Compliance for Foreign Subsidiary

A company where 50% or more of its equity shares are owned by a foreign company is a foreign subsidiary company. The foreign company in such case is called the holding company or the parent company.

Compliances are based on the company that is incorporated. Hence, it is necessary to understand what compliances are supposed to be met according to the type of the company, the operations of the industry, annual turnover, number of employees, etc.

POST INCORPORATION RBI/ FEMA COMPLIANCES

After incorporating a Wholly Owned Subsidiary Company in India or any Company who receive foreign money as share application money, should report to RBI (Reserve Bank of India) to get its FEMA Compliance updated.

S.No.

Types of Compliances

Compliance Particular

Time Period

1

Opening of Bank Account

The Money received from Foreign Subscribers shall be deposited in bank account

within 30 days of issue of Shares

2

Receipt of Subscription Money

Receipt of inward remittance through banking Channels. The recepient Bank shall issue Foreign remittance Certificate

within 30 days of issue of Shares

3

Entity User Registration

Registration of entity user on FIRMS application with following attachment:-
1. Letter of Authorization for creation of Entiry User.

within 30 days of issue of Shares

4

Entity Master Registration

Registration of Entity Master in FIRMS application of RBI

within 30 days of issue of Shares

5

Business User Registration

Registration of Business user on FIRMS application with following attachment:-
1. Letter of Authorization for filing in FIRMS application

within 30 days of issue of Shares

6

FC-GPR

Reporting of FC-GPR in Single Master form along with following attachment:-
1. Board resolution for issue of Share Certificate
2. Certificate of Company Secretary regarding receipt of foreign remittance
3. Undertaking to Comply with FDI Policy
4. Inward remittance certificate of Bank
5. Detail of remittance received
6. Declaration Regarding Not Accepting FDI from OCB
7. Board resolution for Compliance of FDI
8. Undertaking from Company Secretary regarding FC-GPR
9. KYC of foreign subscriber
10. Declaration to be filed by Authorised representative of Indian Company
11. Memorandum of Association

within 30 days of issue of Shares
 

 

 

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