Compliances for Foreign Companies in India

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Compliances for Foreign Companies in India

Foreign Companies have seen India as the Ocean of opportunity. Since India is rich in natural resources as well as the Human resource. Many foreign Companies want to headquarter or have headquartered their office in India. Foreign Company registration is a mandatory protocol for every company to establish Business in India. There are various additional compliance that companies need to maintain under the Companies Act, 2013.

Compliance is a term used in corporate entity for the maintenance of the company. Companies need to spend some money on compliance so that the company's Business should run uniformly. Under compliance there are filing of certain forms and information from time to time to central government as statutory requirement. Compliance is a combined word for all the filings that need to be done to keep your company in good standing with the government authorities.

Form FC -1

Any foreign company registered in India needs to file Form FC1. This form should be filed within the time period of thirty days of the establishment of Business in India. The application must be supported with the attested copy from the RBI which should follow the terms of Foreign Exchange Management Act or Regulation and sanction is necessary from other regulators.

Financial Statements

All foreign companies registered in India are required to organize financial statement of its Indian business operations in agreement with Schedule III of the Companies Act, 2013. Thus foreign companies are required to furnish the following information/statements together with the financial statements of the company to be filed with the Registrar of Companies:

• Statement of associated party transaction
• Statement of repatriation of profits
• Statement of fund transfer which shall be any relation with fund transfer between place of Business of a company
• The documents that are referred to above in this rule must be delivered to the Registrar of Companies within a period of six months from the end of the financial year of the foreign company.

Audit of account of Foreign Company

Foreign Companies in India must get their accounts audited by the individual practicing chartered accountancy in a firm or LLP in India. Foreign companies must get its accounts, pertaining to the Indian business operations organized in agreement with the necessities of clause

Form FC-3

Form FC-3 is required to be filed with Registrar of Company in the case of foreign companies. It is mainly for detailing the list of places of business of the foreign company along with the financial statements of the company.

Annual Return

Foreign Company must file the annual return and document the Annual return of the organization in Form FC-4 within sixty days from the last day of its budgetary year. Any record which ought to be conveyed from an outside organization can be conveyed to the Registrar of Companies with locale over New Delhi.

Authentication of Translated Documents

Necessary documents which are to be with ROC must in English Language. In the event that any interpretation is made out of India, it must be validated by the mark and the seal of the authority with guardianship of the first or a Notary of the nation where the organization has been joined. Where such interpretation is made in India, it might be confirmed by a supporter, lawyer or pleader qualified for show up confronting any High Court and a testimony, of an equipped individual having, in the estimation of the Registrar.

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