Foreign-Owned Subsidiaries · GCCs · Chennai
Annual Compliance, Audit, Transfer Pricing & CFO Support for Indian Subsidiaries
A single retainer covering the Indian statutory calendar and the reporting your parent company expects: ROC and FEMA filings, transfer pricing, GST, TDS, payroll, statutory audit coordination and monthly MIS, for foreign-owned subsidiaries and global capability centres in Chennai.
What compliance does a foreign-owned Indian subsidiary have each year?
A foreign-owned Indian subsidiary must hold at least four board meetings a year, get its accounts audited, file AOC-4 and MGT-7 with the Registrar, file the FLA return with the RBI by 15 July, and file Form 3CEB transfer pricing reports for transactions with its foreign parent. Alongside these sit monthly GST and TDS returns, PF, ESI and Tamil Nadu professional tax, and the annual income tax return. Most foreign parents also need monthly management accounts in IFRS or US GAAP for group consolidation. For current rules and procedures, see the Reserve Bank of India, FEMA and FDI reporting (rbi.org.in).
What the subsidiary retainer covers
Statutory Audit and Year-End Close
We prepare Indian GAAP or Ind AS financial statements, coordinate the statutory audit, and align the year-end timetable with your group reporting deadlines.
ROC and Board Compliance
AOC-4, MGT-7 and DPT-3 filings, plus agendas and minutes for at least four board meetings a year, with no more than 120 days between two meetings.
FEMA Reporting
FC-GPR for each fresh share allotment, the annual FLA return, and downstream investment reporting where the subsidiary itself invests in another Indian entity.
Transfer Pricing
Benchmarking of intercompany services, royalties, cost recharges and loans, Form 3CEB accountant's report, and master file compliance where your group crosses the thresholds.
GST, TDS and Payroll
Monthly GST returns and reconciliations, TDS on vendor and cross-border payments, and payroll compliance for PF, ESI and Tamil Nadu professional tax.
MIS and Group Reporting Packs
Monthly management accounts, cash flow and variance commentary, with IFRS or US GAAP adjustments mapped to your parent's chart of accounts and reporting calendar.
How we onboard an Indian subsidiary
- 1
Compliance health check
We review past ROC, FEMA, tax and payroll filings to find gaps, late filings or pending FC-GPR and FLA submissions, and agree how to regularise them.
- 2
Build the statutory calendar
We prepare a 12-month calendar of every Indian due date for your entity and share it with your parent finance team and resident director.
- 3
Map the chart of accounts
We map the Indian ledger to the group chart of accounts so monthly packs reconcile to consolidation without manual rework.
- 4
Set the monthly close
We agree a close timetable with cut-offs, intercompany confirmations and the date by which the reporting pack reaches the parent.
- 5
Run filings and board cycle
We file monthly and quarterly returns, prepare board papers each quarter, and coordinate with your resident director on approvals and signatures.
- 6
Year-end audit and TP
We prepare audit-ready financials, refresh the transfer pricing study, issue Form 3CEB, and complete ROC and FLA filings after the audit.
Related services
FAQ
Frequently asked questions
How many board meetings must an Indian subsidiary hold?
An Indian private company must hold at least four board meetings each year, with a gap of not more than 120 days between two consecutive meetings. Directors can attend by video conference, which suits foreign directors. We prepare agendas, notices and minutes, and coordinate with your resident director so that quorum and signatures are in place for each meeting.
What is the FLA return and who files it?
The Foreign Liabilities and Assets (FLA) return is an annual RBI filing by Indian companies that have received foreign direct investment or made overseas investments, due by 15 July each year. It reports the foreign equity and other foreign liabilities and assets as at the previous 31 March. It is filed on the RBI's online portal, generally based on audited figures where available.
Does an Indian subsidiary need transfer pricing documentation?
Yes, if it has international transactions with its foreign parent or other group companies, such as service fees, royalties, purchases, cost recharges or loans. The subsidiary must price these at arm's length, maintain documentation and obtain a Form 3CEB report from a Chartered Accountant each year. Larger groups may also have master file and country-by-country reporting obligations in India.
Can you prepare reporting in IFRS or US GAAP for our parent?
Yes, we prepare monthly reporting packs with IFRS or US GAAP adjustments alongside the statutory books, which are kept in Indian GAAP or Ind AS as applicable. Common adjustments include lease accounting, revenue recognition timing and employee benefit provisions. We document each adjustment so your group auditors can trace the reporting pack back to the Indian ledger.
Do you act as the resident director?
No, we do not provide resident directors. Every Indian company needs at least one director who stayed in India for 182 days or more in the financial year, and that person should be someone your group appoints and trusts. We coordinate closely with your resident director on board papers, statutory registers, filings and signatures throughout the year.
We are a GCC in Chennai. Is this retainer suitable for a captive centre?
Yes, global capability centres and captive service units are typical users of this retainer, since they combine cost-plus transfer pricing, large payrolls and parent reporting needs. The key areas are setting the cost-plus markup correctly, invoicing the parent on time, managing GST on export of services, and handling PF, ESI and professional tax for a growing headcount.
Who handles the statutory audit if you prepare the accounts?
The statutory audit is performed by an independent auditor appointed by the shareholders, and we keep the accounting and audit roles separate to protect independence. Where we prepare the books and reporting packs, we coordinate with your appointed auditor on schedules, queries and the audit timetable. Where the group prefers, we can be considered for the audit role only if we are not preparing the accounts.
Google reviews
What clients say on Google
“I used to find tax compliance confusing and honestly a bit stressful, especially with how often regulations seem to change. Working with C S Rushil & Co has made a huge difference. They simplified everything, explained what actually matters for my business, and handled things smoothly from GST filings to more detailed financial reviews. What I appreciate most is their proactive approach they don’t just react, they guide you ahead of time. It’s given me a lot more clarity and confidence in managing my business finances.”
Gokul D.
GST & financial reviews · posted on Google
“Working with C S Rushil & Co has completely transformed my approach to business; their proactive handling of my GST and TDS filings has replaced monthly deadline stress with total financial clarity.”
Mahalakshmi
GST & TDS filings · posted on Google
“Excellent for ITR and GSTR filing. Professional, responsive and reliable. The entire process was smooth and hassle-free.”
Sughirtha D.
ITR & GSTR filing · posted on Google
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