Subsidiary ComplianceIndia
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Subsidiary Compliance

India subsidiary annual compliance for foreign parent companies

ROC annual filings, board and AGM governance, transfer pricing documentation, FEMA annual return on foreign liabilities and assets, RBI reporting and statutory audit coordination for foreign owned Indian subsidiaries.

Counsel that connects the technical, the commercial, and the legal, across ten offices in India.
Companies Act
Annual Filings
FEMA
FLA Return
Transfer Pricing
Documentation
10
India Offices
01

ROC and Companies Act annual filings

  • Annual return (MGT 7) and financial statement (AOC 4) filing within statutory timelines.
  • Board meeting compliance: minimum four meetings per year with at least one meeting per quarter.
  • AGM within six months of financial year close with 21 clear days notice.
  • Director KYC (DIR 3 KYC) for foreign and Indian nominee directors.
02

FEMA and RBI annual reporting

  • Annual Return on Foreign Liabilities and Assets (FLA return) by 15 July each year.
  • External Commercial Borrowing (ECB) return for inter company loans from foreign parent.
  • FC GPR and FC TRS reporting for capital account transactions.
  • Single Master Form (SMF) compliance on FIRMS portal for downstream investment.
03

Transfer pricing and tax compliance

  • Transfer pricing documentation: local file, master file and country by country report.
  • Form 3CEB certification by chartered accountant for international transactions.
  • Advance pricing agreement (APA) and mutual agreement procedure (MAP) where applicable.
  • Permanent establishment risk assessment for parent company personnel visiting India.
04

How AMLEGALS assists

  • Annual compliance calendar design for foreign owned subsidiaries across all regulators.
  • ROC filing management, board secretarial support and statutory audit coordination.
  • FEMA and RBI return preparation and filing on FIRMS portal.
  • Transfer pricing advisory and documentation support.
Answers

What clients ask before they commit.

Short, direct, on the record.

01What are the mandatory annual filings for a foreign owned Indian subsidiary?

A foreign owned Indian subsidiary must file annual return (MGT 7), financial statements (AOC 4), income tax return, transfer pricing report (Form 3CEB), GST annual return, FLA return with RBI, and various event based filings. Failure to file attracts penalties of INR 100 per day per form under the Companies Act.

02Is the FLA return mandatory for all foreign invested companies in India?

Yes. Every Indian company that has received FDI or has made overseas investment must file the annual FLA return with the RBI by 15 July. Non filing can result in compounding proceedings under FEMA and may affect future foreign investment approvals.

03What transfer pricing documentation must a foreign subsidiary maintain in India?

Indian subsidiaries of foreign companies must maintain contemporaneous transfer pricing documentation including a local file (if international transactions exceed INR 1 crore) and a master file and country by country report if the parent group revenue exceeds INR 5,500 crore (approximately EUR 750 million).

04Can board meetings of an Indian subsidiary be attended remotely by foreign directors?

Yes. Foreign directors can attend board meetings via video conferencing under Section 173(2) of the Companies Act. However, certain matters including financial statement approval and board report cannot be transacted through video conferencing. At least one meeting per year should ideally be held in person.

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