The Foreign Company is a company that is incorporated outside India but has a registered place of business in India. As per Companies Act 2013, the foreign company is required to fulfill certain additional compliance requirements than other forms of companies.
Now 100% foreign investment in certain sectors is permitted in India subject to certain restrictions. Thus more and more foreign companies are establishing their place of business in India. Every foreign company in India is required to fulfill following compliance requirement-
Within 30 days of the establishment of its place of business in India, the foreign companies registered in India are required to file Form FC-1. The application must be supported by an attested copy of approval from the Reserve Bank of India under the terms of Foreign Exchange Management Act or Regulations, and too from other regulators, if any, the sanction is necessary.
Like other companies foreign company is also required to prepare and file the annual return of the company in Form FC-4 within a period of sixty days from the final day of its financial year.
Further, the financial statement of the foreign company of its Indian business operations shall be prepared in agreement with Schedule III of the Companies Act, 2013. The financial statements prepared shall be furnished with the Registrar of Companies shall contain the statement of associated party transaction, Statement of repatriation of profits, Statement of transfer of funds.
Audit of Accounts of Foreign Company
All the financial accounts of the company must be audited by the charted accountant or the firms of charted accountants.
Authentication of Translated Documents
All the documents necessary to be filed with the Registrar of Companies by the foreign company must be in the English language. In case any translation is made out of India, it shall be authenticated by an Advocate, attorney or pleader entitled to appear facing any High Court.