Foreign company registration in India

 List of Compliance to be done before revenue authorities in India.


Owing to various incentives and schemes of government of India like make in India, Ease of Doing Business, Profit Linked Incentive scheme and also the fact that India is one of the fastest growing economies in the world with huge consumer market, India has recently seen huge surge in foreign Direct investment as well as increase in foreign company registration in India.


There are many forms in foreign companies can set up their business in India like Branch office, Liaison office, subsidiary company registration in India, LLP registration etc.

 

In this write up, we have provided list of some of the compliances which every foreign company need to be done before regulatory authorities.

 


a)      Filing of Annual Activity Certificate with DGIT

 

Every Branch Office and Liaison office in India is required to obtain an annual activity certificate (AAC) from the auditor of the company to certify that its activities are as per prescribed RBI guidelines and same need to be filed with Director-General of Income-tax (DGIT) on annual basis. Same need to be filed on or before 30th September.

 


 

b)      Filing of Form 49C by LO

 

Every Liaison Office in India is required to report the particulars in form 49C to tax authorities on annual basis on or before 30th May

 

 

COMPLIANCE UNDER COMPANIES ACT

 

c)      Intimation about setting up business in India Form FC-1

 

Every Branch Office in India has to file Form FC-1 with the Registrar of Companies in India (ROC) providing intimation regarding setting of place of business in India within 30 days from date of business set up in India

 

d)     Filing of Annual Form FC-3

 

Every Branch Office in India has to file an Annual Form FC-3 with ROC , to report its annual accounts, consolidated financials of parent company, & list of all principal places of business in India. The same need to be filed on or before 30th September

 

 

e)      Filing of Annual Return Form FC-4

 

Every Branch Office in India has to file an Annual Return in Form FC-4 on or before 30th May

 

 

COMPLIANCE UNDER FOREIGN EXCHANGE LAW

 

f)       Filing of Annual Activity Certificate with RBI and DGIT

 

Every Branch Office in India is required to obtain an annual activity certificate (AAC) from the auditor of the company to certify that its activities are as per prescribed RBI guidelines and same need to be filed with RBI (through Authorized Dealer Bank) on annual basis on or before 30th September

 


g)      Intimation to Director General of Police

 

All new entities setting up Branch Office shall submit a report on becoming functional to Director General of Police within 5 working days of the LO/BO becoming functional

 

 

Thus, it may be seen from above that there are lot of compliances which need to be done post foreign company registration in India. Further, failure to comply by due dates would lead to penalty and interest. Thus, every company shall keep in mind aforesaid due dates and comply the same within prescribed time.

Location: Singapore

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