Last updated: 14 Oct 2026

Virtual Auditor

Foreign Subsidiary Compliance India

This page concerns overseas subsidiaries and investments of Indian residents. Assess the transaction under the Overseas Investment Rules, Regulations and Directions, 2022, including the applicable Form FC and APR requirements and exceptions through the designated AD bank.

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Applicable law and source notes

This page concerns overseas subsidiaries and investments of Indian residents. Assess the transaction under the Overseas Investment Rules, Regulations and Directions, 2022, including the applicable Form FC and APR requirements and exceptions through the designated AD bank. Inbound investment into an Indian subsidiary is a different direction of investment; FC-GPR and inbound pricing are not a universal checklist for an outbound subsidiary.

https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12381&Mode=0

Last updated: 14 Aug 2026

This page concerns overseas subsidiaries and investments of Indian residents. Assess the transaction under the Overseas Investment Rules, Regulations and Directions, 2022, including the applicable Form FC and APR requirements and exceptions through the designated AD bank. Inbound investment into an Indian subsidiary is a different direction of investment; FC-GPR and inbound pricing are not a universal checklist for an outbound subsidiary.

Looking for expert foreign subsidiary compliance india? Virtual Auditor provides practitioner-grade fema services in India, led by CA V. Viswanathan — IBBI Registered Valuer (IBBI/RV/03/2019/12333) | Fellow Chartered Accountant (FCA) | Associate Company Secretary (ACS). We combine deep regulatory expertise with hands-on execution to deliver results within your timeline.

What is Foreign Subsidiary Compliance India?

What We Deliver

Deliverables are scoped to the overseas transaction: applicability assessment, pricing support where required, Form FC and APR support where applicable, AD-bank document pack, filing acknowledgements and a compliance calendar. An acknowledgement is not a guarantee of regulatory approval.

Our Process

Step 1: Transaction structure review and FEMA applicability assessment. Step 2: Valuation/pricing computation under applicable FEMA rules. Step 3: Document preparation and regulatory filing with AD bank/RBI. Step 4: Follow-up with authorities until acknowledgment/approval. Step 5: Post-transaction compliance setup and calendar.

We work directly with Authorised Dealer banks to ensure smooth processing of all FEMA filings. Our in-house valuation capability means you do not need to engage a separate valuer for FEMA pricing — the valuation report and FEMA filing are prepared by the same team, eliminating coordination delays and inconsistencies.

Get Started Today

Ready to engage Virtual Auditor for foreign subsidiary compliance india? Contact us for a free initial consultation:

Call/WhatsApp: +91-99622 60333

Email: support@virtualauditor.in

Offices: Chennai | Bangalore | Mumbai

No obligation. We will assess your requirements and provide a clear scope, timeline, and fixed-fee quote within 24 hours.

Frequently Asked Questions

What documents are needed for foreign subsidiary compliance india?
Key documents include: Certificate of Incorporation, PAN, share subscription/transfer agreement, valuation report, board resolution, FIRC from the bank, and details of the foreign investor. We provide a personalised checklist after the initial consultation.
How long does foreign subsidiary compliance india take?
Standard filings: 7-10 working days. Compounding applications: 15-21 working days for preparation (RBI processing takes additional 60-90 days). Contact us at +91-99622 60333 for your specific timeline.
What happens if FEMA compliance is not done on time?
FEMA contraventions attract penalty up to 3x the transaction amount under Section 13, plus Rs 5,000/day for continuing contravention. Compounding with RBI is possible but becomes more expensive with delay. Early compliance is always advisable.
Can we make this investment, borrowing or remittance, and which conditions and filings apply?
Sort the transaction by direction and instrument. Foreign investment into an Indian company follows the NDI Rules, 2019: check the sector cap and route, price it at or above fair value, and report it on FIRMS. Investment by an Indian entity or resident abroad follows the Overseas Investment Rules and Regulations, 2022, with filings through your bank. Borrowing from abroad follows the RBI’s external commercial borrowing framework: eligible lender and borrower, cost ceiling, end-use rules, a loan registration number and monthly ECB-2 returns. Individuals can remit up to USD 250,000 a year under the Liberalised Remittance Scheme. We check whether the transaction is allowed, list the conditions and approvals, and handle the filings.

Related Services

Indian Subsidiary / Foreign Company RegistrationForeign Liaison & Branch Office in IndiaForeign Company Subsidiary India ComplianceIndian Subsidiary Registration in BangaloreIndian Subsidiary Registration in ChennaiIndian Subsidiary Registration in MumbaiCompliance Audit Services IndiaECB Compliance Chartered Accountant

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What the law says — Companies Act 2013 s.2(42) and s.380; FEMA (NDI) Rules 2019; Income-tax Act s.92

An Indian subsidiary of a foreign company carries three compliance layers: the Companies Act filings of any private company plus the foreign-subsidiary provisions, FEMA reporting of every inflow (FC-GPR, FLA by 15 July), and transfer pricing on all transactions with the parent. Downstream investment rules apply if the subsidiary itself invests.

How does the procedure work?

  1. Register the inflow and allot within 60 days; file FC-GPR
  2. File the FLA return by 15 July each year
  3. Maintain transfer-pricing documentation and Form 3CEB
  4. Complete the annual MCA filings
  5. Check downstream investment and sectoral caps before any further investment
Time limitFLA return by 15 July; FC-GPR within 30 days of allotment; Form 3CEB by 31 October
FormsFC-GPR; FLA; Form 3CEB; AOC-4; MGT-7
Consequence of defaultLate submission fees under FEMA; penalties under the Companies Act and s.271AA

Source: Companies Act, 2013 and FEMA. Last reviewed 2026-10-14.

Which laws govern this service? — FEMA

The statutory provisions this service is delivered under, linked to the official text:

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