Compliance Requirements for Indian Subsidiary Registration

Ensuring the establishment of a legally sound and valid Indian subsidiary company necessitates strict adherence to specific regulatory requirements, including:

1: Foreign Exchange Management Act (FEMA): Foreign companies operating in India must meticulously comply with the laws and regulations governing foreign exchange, as stipulated by the Foreign Exchange Management Act, 1999.

2: Companies Act, 2013: All Indian subsidiary companies are obligated to adhere to the provisions outlined in the Companies Act, 2013, ensuring compliance with the statutory framework governing corporate entities.

3: Reserve Bank of India (RBI) Compliances: Indian subsidiary companies are subject to various foreign exchange management compliances mandated by the Reserve Bank of India (RBI), contributing to the overall regulatory landscape.

4: Income Tax Act, 1961: Annual filing of income tax returns is a mandatory requirement for Indian subsidiaries, with compliance under the provisions of the Income Tax Act, 1961. The current corporate tax rate in India stands at 25%.

5: Annual Returns: Companies are obligated to submit annual returns to both the Ministry of Corporate Affairs (MCA) and the Registrar of Companies, reinforcing transparency and adherence to regulatory standards.

6: SEBI (Listing Obligations and Disclosure Regulations): Should the subsidiary opt to list its securities on a stock exchange, strict compliance with the Securities and Exchange Board of India (SEBI) regulations, specifically the Listing Obligations and Disclosure Regulations, becomes imperative.

To know more, visit:https://www.registerkaro.in/indian-subsidiary-registration