Foreign Company Compliance in India
In India, the registered foreign companies are required to uphold a variety of supplementary compliances as per the Companies Act, 2013.
What is Form FC-1?
In India, the registered foreign companies are required to file Form FC-1 within the duration of thirty days of the formation of its position of business in India. The application must be submitted along with an attested copy of the authorization from the Reserve Bank of India as per the conditions of Foreign Exchange Management Act or Regulations. Other regulators can also be followed, but above all sanction is necessary.
What are financial statements?
In India, all foreign companies registered are obligatory to classify financial statement of its Indian conglomerate operation in concurrence with Schedule III of the Companies Act, 2013. As a result, it is necessary foreign companies to deliver the following information and/or statements along with the financial statements of the company when filed with the Registrar of Companies : The documents mentioned above must be surrendered to the Registrar of Companies within the duration of six months starting from the end of the foreign company’s financial year.
- Statement of related party transaction.
- Statement of repatriation of earnings.
- Statement of transfer of funds which may include dividends if there are any.
This shall be in relation to any fund transfer involving location of business of foreign company in India and any other correlated accomplice of the foreign company
Inspection of Accounts of Foreign Company
Each and every one of the foreign companies must get its financial records, related to the Indian business ventures structured in conformity with the provisions of clause (a) of sub-section (1) of section 381 as well as rule 4 and should be examined by an active Chartered Accountant in India or a corporation or LLP of active Chartered Accountants.
What is Form FC-3?
Every single one foreign companies are required to file with the Registrar of Companies the Form FC-3.This will include the inventory of the locations of the business of the foreign company together with the financial records of the company.
Foreign companies must organize and put on record the yearly return of the company in Form FC-4 in an interval of sixty days starting from the ending day of its financial year. Whichever document is distributed from a foreign company can be dispensed to the Registrar of Companies with authority over New Delhi.
Validation of Translated Documents
Documents which are required to be recorded with the Registrar of Companies by the foreign company bought to be in the English language. When any translation is made outside of India, it is required to be certified by the signature along with the seal of the authorized personnel with custody of the initial or a Notary of the country, where the corporation has been built-in. When a translation is made in India, it shall be substantiated by an Advocate, attorney or pleader permitted to emerge in any High Court. In addition, an affidavit of a proficient person should be present in the inference of the Registrar. Thus, “Foreign Company Compliance in India”, is quite important for foreign companies, which are interested to establish a business in India.