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.
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:- |
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:- |
within 30 days of issue of Shares |
|
6 |
FC-GPR |
Reporting of FC-GPR in Single Master form along
with following attachment:- |
within 30 days of issue of Shares |
Created & Posted by Pooja
Income Tax Expert at TAXAJ
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