Foreign Companies in India
Entering the Indian market is a significant opportunity - but the regulatory framework around FEMA, RBI approvals, and transfer pricing is complex. We serve as your on-ground compliance partner, ensuring every filing is handled correctly from day one.
Key Compliance Challenges
FEMA & RBI Compliance
Every cross-border transaction - equity inflows, ECBs, royalty payments, inter-company loans - requires RBI reporting. Missed FC-GPR, FC-TRS, or ECB-2 filings attract compounding penalties. The 30-day reporting window for FDI transactions leaves little room for error.
Entity Structure Selection
Choosing between a Wholly Owned Subsidiary (WOS), Branch Office, Liaison Office, or Project Office has long-term tax and operational implications. Each structure has different RBI approval routes, permitted activities, and exit mechanisms.
Transfer Pricing Documentation
International transactions between the Indian entity and the parent company must be at arm's length. Inadequate transfer pricing documentation - TP study, benchmarking analysis, or master file - can trigger adjustments, penalties up to 200% of tax on adjustments, and prolonged litigation.
DTAA & Withholding Tax
Payments to the parent company (management fees, royalties, dividends) attract withholding tax. Applying the correct DTAA rate, obtaining Tax Residency Certificates, and filing Form 15CA/15CB for every outward remittance requires specialised knowledge and timely execution.
Our Services for Foreign Companies
India Entry & Subsidiary Setup
We advise on the optimal entity structure based on your business model, handle incorporation with the MCA, obtain PAN/TAN, open bank accounts, and complete all post-incorporation compliance. For WOS setups, we file FC-GPR with the RBI and ensure FDI reporting is completed within the statutory window.
FEMA Compliance & RBI Reporting
We manage all RBI filings - Annual Return on Foreign Liabilities and Assets (FLA), FC-GPR for equity inflows, FC-TRS for share transfers, ECB-2 for external commercial borrowings, and ODI filings for outbound investments. Our team monitors regulatory changes and ensures your entity stays compliant with evolving FEMA regulations.
Transfer Pricing & Benchmarking
We prepare comprehensive TP documentation including local file, master file (for entities exceeding the threshold), and Country-by-Country Reporting (CbCR). Our benchmarking studies use robust comparables from Indian databases, and we file Form 3CEB within the due date to avoid penalties.
DTAA Advisory & Repatriation
We structure cross-border payments to optimise withholding tax using applicable DTAA provisions. For every outward remittance, we prepare Form 15CA/15CB certifications, obtain lower withholding tax certificates under Section 197 where applicable, and advise on dividend repatriation strategies that minimise overall tax leakage.
Entering India? Start with the right compliance partner.
Book a consultation with a CA experienced in cross-border structuring, FEMA, and international taxation.
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