A foreign company that has been incorporated in India with the due process must adhere to certain compliance that is extremely important. There are several compliances that a foreign company needs to follow in today’s market. The new Companies Act 2013 has various new provisions that have made the compliances mandatory and much more strictly stipulated than before. The wider scope and strict compliances that have been ensured by the new Act are quite significant with regard to the operations of foreign companies in India.
Every foreign company must prepare its financial statements regarding all business operations in India as provisioned by Schedule III of Companies Act, 2013. Along with the financial statements, the following documents must be attached and sent to the registrar as well:
This statement must carry names of the people in India who are related to the foreign company, the nature of their relationship, and their role. The statement must also include descriptive details of the transactions, reason, result on the affected parties, the balances, provisions, and other monetary actions that took place within a financial year.
The statement must include the amount of profit repatriated to the home country, recipient info, and dates of the repatriation along with the mode at which the repatriation took place all approved by the Reserve Bank of India.
It must consist of the date amounts, purpose, and receipts of the relevant transfer of funds along with the approval of the Reserve Bank of India. It must include dividends as well (if any exist).
A foreign company should always follow the aforementioned compliances strictly after their business incorporation and must take special care in the filing of all the relevant and necessary documents.