Basic Facts on Foreign Subsidiary Company Compliance in India
Foreign subsidiary companies have 50% or more foreign equity ownership. The foreign company is the holding company or parent company.
Company incorporation determines compliance. Thus, it is necessary to understand what compliances must be met depending on the company type, industry, annual turnover, number of employees, etc.
Foreign subsidiaries must follow the Income Tax Act, Companies Act, Transfer pricing guidelines, and FEMA guidelines.
Foreign subsidiaries must file income tax returns with the income tax department, annua