Annual Compliance Checklist for Foreign Companies Operating in India
Foreign companies doing business in India—whether through a branch office, liaison office, project office, or subsidiary—must adhere to a specific set of annual compliance obligations. Failure to meet these requirements can lead to penalties, operational disruption, or reputational damage.
At Jain Prachi & Company, we specialize in helping global enterprises maintain full compliance with Indian regulatory frameworks across tax, company law, and foreign exchange regulations.
Who Needs to Comply?
Annual compliance is mandatory for:
- Wholly-owned subsidiaries and joint ventures incorporated in India by foreign entities
- Foreign companies with a registered place of business in India
- Branch Offices (BOs), Liaison Offices (LOs), and Project Offices (POs) operating under RBI/FEMA regulations
Key Annual Compliances Under Indian Law
- Companies Act, 2013 – MCA Compliance
All Indian-incorporated subsidiaries and joint ventures must comply with these corporate governance filings:
Compliance | Description | Timeline |
Board Meetings | Minimum of 4 board meetings per year | Quarterly |
Annual General Meeting (AGM) | For approval of accounts and reports | Within 6 months from year-end |
Form AOC-4 | Filing of financial statements with ROC | Within 30 days of AGM |
Form MGT-7 | Annual return with shareholder details | Within 60 days of AGM |
DIR-3 KYC | KYC filing for directors | Annually by Sept 30 |
- Income Tax Act, 1961 – Tax Compliance
All entities earning income in India must file income tax returns:
Compliance | Description | Timeline |
Form ITR-6 / ITR-7 | Income tax return filing | By Oct 31 (if audit not required), Nov 30 (if audit applicable) |
Tax Audit (Form 3CD/3CA/3CB) | Mandatory if turnover exceeds ₹1 crore (or ₹10 crore if digital transactions) | By Sept 30 |
Transfer Pricing Report (Form 3CEB) | Applicable for international and specified domestic transactions | By Nov 30 |
- FEMA & RBI – Foreign Exchange Compliance
Entities with foreign investment must also fulfill RBI reporting requirements under FEMA regulations:
Compliance | Description | Timeline |
FC-GPR Filing | Reporting of FDI received | Within 30 days of allotment |
FC-TRS Filing | Transfer of shares between resident and non-resident | Within 60 days |
Annual Return on Foreign Liabilities and Assets (FLA) | Reporting of foreign assets and liabilities to RBI | By July 15 annually |
Form APR | Annual Performance Report by branch/project/liaison offices | By June 30 |
Statutory Audit and Secretarial Compliance
- Foreign companies with operations in India must have their books audited by a Chartered Accountant.
- Companies with a paid-up capital of over ₹10 crore or turnover over ₹50 crore must appoint a Company Secretary and conduct Secretarial Audits (Form MR-3).
Penalties for Non-Compliance
Failure to comply with Indian annual compliance requirements can result in:
- Monetary penalties ranging from ₹50,000 to several lakhs
- Prosecution under Companies Act provisions
- Freezing of bank accounts and asset repatriation restrictions
- Disqualification of directors and blacklisting of companies
How Jain Prachi & Company Ensures Seamless Compliance
We provide end-to-end support to foreign entities in meeting all their annual compliance obligations in India. Our services include:
- Company law compliance and MCA filings
- Statutory audit coordination and tax return filing
- FEMA and RBI reporting assistance
- Director and shareholder KYC compliance
- Transfer pricing documentation and audit representation
Why Choose Jain Prachi & Company?
- Expertise in managing compliance for global clients across sectors
- In-house team of Chartered Accountants, Company Secretaries, and legal advisors
- Transparent packages tailored for foreign subsidiaries and branch offices
- Proactive reminders and end-to-end documentation handling
Stay Compliant. Stay Confident.
Whether you’re operating a subsidiary, branch office, or liaison setup in India, annual compliance is non-negotiable. Ensure full regulatory alignment and avoid penalties with the trusted guidance of Jain Prachi & Company.
📧 Email: contactus@jainprachi.com
🌐 Website: https://jainprachi.com
Let us manage your annual compliances so you can focus on your business.
FAQs – Annual Compliance for Foreign Companies in India
Q: Is compliance required even if the Indian subsidiary is not operational?
Yes, compliance is mandatory as long as the company is registered.
Q: Can compliance be outsourced entirely to a professional firm?
Absolutely. Firms like Jain Prachi & Company provide full-service compliance management.
Q: What is the penalty for non-filing of MCA forms?
The company may be charged ₹100 per day of delay per form, without limit, plus additional prosecution risk in serious cases.
