Foreign Subsidiary Company is governed by Companies Act, 2013 and FDI policy and hence its must comply with compliances of both ROC and RBI in addition of other compliances. Further please note that for Company audit is mandatory. Following are compliances to be done by Foreign Subsidiary companies in a year: –
Monthly Compliances for Foreign Subsidiary Companies: –
- Monthly GST return filling
- Monthly ECB return filling to RBI (If a foreign company has taken ECB)
Every company which has taken External commercial borrowing from outside India has to submit to RBI through its AD bank concern a monthly ECB return within 7 working days from the close of the month in form ECB 2.
Quarterly Compliances for Foreign Subsidiary Company: –
- TDS Return filling
- Conducting board meeting
Board meeting is a meeting of director of the company held to discuss various issues and progress the company. Every company is required to hold a board meeting every quarter and maximum gap between two meeting should not be more than 120 days. However as per latest amendment is Secretarial Standard board meeting there is no mandatory requirement of holding board meeting is every quarter.
Annual Compliances for Foreign Subsidiary Company: –
To Goods and Services Tax department: –
Annual GST return filling
To Income Tax department: –
Income tax return filling
An audit is a systematic and independent examination of books of accounts accounts, statutory records, documents and vouchers of an entity to ascertain how far the financial statements as well as non-financial disclosures present a true and fair. Every company is mandatory to conduct Audit. Audit is done by independent Practicing Charted Accountant.
To Registrar of Companies (ROC): –
Form AOC-4 (Statement of Account & Solvency):
Company is required to file form AOC-4 to ROC within 30 days from date of Annual General meeting. Annual General meeting can be held maximum up to 6 months from close of financial year to which it relates. Further every company must maintain uniform financial year ending on 31st March of a year hence maximum time for filling Form AOC-4 is by 30th October every year.
Form MGT-7 (Annual Return):
Company is required to file Form MGT-7 (Annual Return) annually within 60 days from Annual General meeting. Annual General meeting can be held maximum up to 6 months from close of financial year to which it relates. Further every company must maintain uniform financial year ending on 31st March of a year hence Form MGT-7 has to be filled by 29th November every year
Annual return on Foreign Liabilities and Assets to Reserve Bank of India (RBI): –
Every companies has to submit a report of Foreign liabilities and Assets by 15th July every year about any foreign investment, in current financial year or any to all investments by way of direct/portfolio investments/reinvested earnings/other capital in the Indian company made during the previous years. The details of the investments to be reported would include all foreign investments made into the company which is outstanding as on the balance sheet date
Compliances for company having turnover less than 20 Lakhs (Including audit)
INR 9,999/ month
Compliances for companies having turnover less than 5 crores (Including audit)
INR 14,999/ month
Compliances services for companies having turnover more than 5 crores (Including audit and XBRL filling)
INR 19,999/ month