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RBI Compliance for foreign subsidiary company

M Agrawal (Student) (127 Points)

11 November 2009

Please let me know whether there should be any RBI compliance for any foreign subsidiary company providing software development services.

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Satish (CA Final Student) (479 Points)
Replied 11 November 2009

Provisions of foreign exchange management act 1999 are to be complied with. The subsidiary has to seek Permissions from RBI from time to time wherever required.

CA. Anuj Gupta (Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA) (7014 Points)
Replied 04 July 2011

Originally posted by : M Agrawal
	Please let me know whether there should be any RBI compliance for any foreign subsidiary company providing software development services.

First of all the subsidiary should have been opened under the guidelines prescribed by RBI.(400% limit)

Secondly there is Annual Statement of Assets & Liabilities to be submitted by 15th July for such investement in subsidury by Indian Co.

Also the transactions between the foreign subsidiary and Indian Co. are subject to overall regulations of FEMA..

Anuj

091-9810106211

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 04 July 2011

Originally posted by : CA. Anuj Gupta

Originally posted by : M Agrawal

Please let me know whether there should be any RBI compliance for any foreign subsidiary company providing software development services.

First of all the subsidiary should have been opened under the guidelines prescribed by RBI.(400% limit)

Secondly there is Annual Statement of Assets & Liabilities to be submitted by 15th July for such investement in subsidury by Indian Co.

Also the transactions between the foreign subsidiary and Indian Co. are subject to overall regulations of FEMA..

Thank you sir for the information.

CA. Anuj Gupta (Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA) (7014 Points)
Replied 18 July 2011

Also the Indian company needs to submit Form APR certified by the auditor of Indian company before end of 3 months from the cloase of boks of accounts of foreign subsidiary.

Anuj

+91-9810106211