FOREIGN SUBSIDIARY

Foreign subsidiary companies are mandatorily required to maintain compliance as per Income Tax Act, Companies Act, transfer pricing guidelines and FEMA guidelines. Hence, maintaining compliance for a foreign subsidiary company would include filing of income tax return with the Income Tax Department, annual return with the Ministry of Corporate Affairs and other filings with authorities like Reserve Bank of India or Securities & Exchange Board of India (SEBI).

FDI Reporting to RBI using Form FC-GPR

Issuing Shares of Indian Company to the Foreign Investor

FDI Inflow into the Company

An Indian company that is issuing shares or convertible debentures under FDI, can receive the money for such shares or debentures through one of the following modes:

FDI Reporting to RBI through Form FC-GPR

Within 30 days from the date of issue of shares, form FC-GPR must be filed with the RBI along with the following documents

Form FC-GPR and the Company Secretary / Chartered Accountant certificates must be submitted by the company to the Foreign Exchange Department, Reserve Bank of India.

Reporting FDI Inflow into the Company

Within 30 days of receipt of share application money/amount of consideration from the foreign investor, the Indian company must report details of the FDI inflow to the Foreign Exchange Department, Reserve Bank of India. The report must be submitted to the Regional Office of the Reserve Bank of India under whose jurisdiction its Registered Office is located. The form to be filed at this stage is the Advance Reporting Form, containing the following details

Documents Required

Members

For Registered Office

Other Details

Deliverables

Service Charges

Rs 59999 (Government charges extra)*

*Cost of Stamp paper as per Government rules

Service Charges

Rs 59999 (Government charges extra)*

*Cost of Stamp paper as per Government rules