Foreign Company Complainces

Foreign Complainces

🏛️ Compliances for a Foreign Company Company in India

Here are all important compliances for a Foreign Company in India (as per Companies Act, 2013 + FEMA + Income Tax + GST + Labour Laws). Summarised in a practical, CA-friendly checklist.

(If having a place of business in India OR conducting business electronically / physically)

1️⃣ Companies Act, 2013 – Section 380 to 386

Initial Compliances

Compliance	Details
Form FC-1	File within 30 days of establishment of place of business in India. Attach: charter documents, list of directors, RBI approval (if required).
Establishing place of business	Must have a registered office in India for receiving notices.
Appoint Authorised Representative	Person resident in India to receive official communications.

Annual Compliances

Compliance	Form Due Date
Annual Financial Statements	FC-3 Within 6 months of close of financial year
Annual Return	FC-4 Within 60 days from end of financial year

2️⃣ FEMA / RBI Compliances

Applicable depending on type of setup:

A. Liaison Office (LO)

• File Annual Activity Certificate (AAC) to RBI + DGIT (International Tax) within:

30 Sept (if FY = April–March)
31 Dec (if FY = J-D for parent)

• Renew LO every 3 years.

B. Branch Office (BO)

• File AAC annually.
• Report any changes in directors / constitution to RBI.
• Submit Form FNC and approvals for establishment.

C. Project Office (PO)

• Open bank account only for project.
• File Project Status Reports.
• On completion: Close PO within 30 days using Form PO Closure.

3️⃣ Income Tax Compliances

PAN/TAN

• Mandatory for all foreign companies with Indian operations.

Tax Filings

Filing	Details
Income Tax Return (ITR-6)	Due 31 Oct (if audit applicable).
Transfer Pricing Report – Form 3CEB	If international transactions exist.
WHT/TDS Compliances	Monthly payment + quarterly TDS returns (Form 24Q/26Q).
Equalisation Levy	WHT/TDS Compliances

Tax Audit

• Mandatory if BO/PO operations exceed threshold.

4️⃣ GST Compliances (If applicable)

• GST registration if:

o Supply of goods/services in India
o Import of services (reverse charge)

• Monthly/Quarterly returns:

o GSTR-1
o GSTR-3B
o GSTR-7 (if TDS under GST)

• Annual return (if applicable).
• Mandatory e-invoicing based on turnover.

5️⃣ Transfer Pricing (TP)

• Applicable to transactions with parent company / group entities.
• Compliances:

o Form 3CEB
o TP Study Report
o Master File (Form 3CEAA)
o Country-by-Country Reporting (CBCr) – Form 3CEAC

6️⃣ Labour Law Compliances

(Depends on number of employees)
• PF & ESIC registration (if employee threshold is met).
• Shops & Establishment Act registration.
• Professional Tax (depending on state).
• Labour returns – annual and half-yearly.

7️⃣ Other Mandatory Compliances

If foreign company meets CSR criteria, its Indian project office/branch must comply with CSR provisions.

Data Protection (DPDPA 2023)

If handling Indian user data → compliance with India’s data protection law.

Business-Specific Registrations

• Importer-Exporter Code (IEC)
• Trade licenses
• Industry-specific approvals (FSSAI, SEZ, DPIIT, etc.)

⭐ Quick Compliance Summary

Monthly

• GST returns
• TDS payment
• Payroll compliances (PF, ESIC, PT)

Quarterly

• TDS returns
• Transfer pricing advance reporting (if any)

Annual

• FC-3 & FC-4 (Companies Act)
• AAC (RBI)
• ITR-6
• TP Reports
• Statutory audit (if applicable)

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