Accounting, reporting and compliance for Indian subsidiaries of foreign companies
Vijayarajan & Associates maintains the books of Indian subsidiaries, branch offices and liaison offices, closes each month to an agreed day, and prepares the reporting pack in the parent group's format.
The entity's FEMA, ROC, GST, TDS and transfer pricing obligations are kept on a single calendar with a named owner, so the parent's finance team knows what is due and who is handling it.
Entities run from outside India
The decisions for an Indian subsidiary are usually made by a finance team in another country and another time zone. That team needs accurate Indian books, a reporting pack on time, and confidence that local filings are not being missed.
Indian subsidiaries
Wholly owned subsidiaries and joint ventures of foreign companies, including IT, services and trading entities.
Private limited companiesBranch, liaison and project offices
Offices of foreign companies operating under RBI approval, with their own annual certification and ROC filing requirements.
Offices of foreign companiesNewly set-up entities
Entities in their first years, where the chart of accounts, controls and compliance calendar are being established.
Early-stage entitiesAccounting, reporting and compliance in one engagement
The scope is agreed in writing for each entity, based on its structure, activity and the parent group's reporting requirements.
Accounting and close
- Day-to-day bookkeeping under Indian GAAP or Ind AS
- Month-end close to an agreed working day
- Bank, vendor and customer reconciliations
- Payroll accounting and statutory payment records
Group reporting
- Reporting pack mapped to the group chart of accounts
- Intercompany reconciliation with the parent and group entities
- A short note of open items each month
- Year-end schedules for the statutory auditor
Statutory compliance
- GST and TDS returns and payments
- FEMA reporting for foreign investment and annual returns
- ROC annual filings and event-based forms
- Transfer pricing documentation support and certification
- Certification for remittances to the group
Statutory audit is not part of this service. See the FAQ below.
Recurring compliance for a foreign-owned company in India
An indicative calendar of the obligations that most often apply. The exact list depends on the entity's structure, activity and size.
| Area | Obligation | When |
|---|---|---|
| FEMA | Reporting of shares issued to a foreign investor (Form FC-GPR) | Within 30 days of allotment |
| FEMA | Reporting of share transfers between resident and non-resident (Form FC-TRS) | Within 60 days of transfer or receipt of consideration, whichever is earlier |
| FEMA | Annual Return on Foreign Liabilities and Assets (FLA) | By 15 July each year |
| FEMA | Annual Activity Certificate for branch, liaison and project offices | By 30 September, with audited accounts for the year ended 31 March |
| Companies Act | Annual general meeting; financial statements and annual return filed with ROC | AGM within six months of year end; filings within 30 and 60 days of the AGM |
| Companies Act | Branch offices of foreign companies: annual accounts and annual return | Within six months and 60 days of year end respectively |
| Income tax | Tax audit report and transfer pricing accountant's report (Form 3CEB; Form No. 48 from tax year 2026-27) | 31 October following the year end |
| Income tax | Return of income for companies with international transactions | 30 November following the year end |
| Income tax | Liaison offices: annual statement to the income tax department | Within eight months of the year end |
| Income tax | Advance tax instalments | 15 June, 15 September, 15 December, 15 March |
| TDS | Deposit of tax deducted; quarterly TDS statements | Monthly; quarterly statements after each quarter |
| TDS / FEMA | Certification for remittances to the parent (services, royalty, reimbursements) | Before each remittance |
| GST | Outward supply return and summary return | Monthly (or quarterly where eligible) |
| GST | Annual return and reconciliation statement | By 31 December following the year end |
Indicative as at September 2026 and subject to change by notification. The Income-tax Act, 1961 continues to govern filings for FY 2025-26; from tax year 2026-27 the Income-tax Act, 2025 applies and form numbers change. Confirm current requirements before relying on this table.
How an engagement runs
A defined sequence from takeover to monthly reporting, so the parent's finance team knows what arrives and when.
Review
Current books, pending periods, filing status and the group's reporting requirement.
Set up
Chart of accounts mapping to the group, document flow, system access and the compliance calendar.
Record and reconcile
Transactions posted from documents; bank, intercompany, GST and TDS balances reconciled.
Close and report
Month-end adjustments, the reporting pack and a short note of open items to the parent.
File
Returns and forms prepared, reviewed by a partner and filed against the calendar.
Review the process
A note on changes that would make the monthly work faster or more reliable.
A chartered accountancy firm, in practice since 1993
Vijayarajan & Associates is registered with the Institute of Chartered Accountants of India (Firm Reg. No. 006272S). Its partners are bound by the ICAI Code of Ethics, and every client file is reviewed by a partner.
The same team works on an entity month after month, so the parent company's finance team deals with people who already know the entity's history.
Independence
Where the firm maintains an entity's books, it does not act as that entity's statutory auditor, in line with Section 144 of the Companies Act, 2013.
Information systems oversight
Controls over client data and systems are overseen by a partner holding the ICAI post-qualification in Information Systems Audit (DISA).
Controlled access
Named, role-based access to client systems, removed promptly when an engagement or staff role ends.
Document handling
Documents exchanged through controlled channels, not personal email.
Written terms
Confidentiality and data-handling terms set out in every engagement letter.
Connected areas of support
Foreign-owned entities often need support that sits alongside monthly accounting.
Bookkeeping & Accounting
Day-to-day bookkeeping, monthly closing, MIS reporting and reconciliations.
View bookkeeping servicesGST Services
GST registration, return filing, input tax credit review and reconciliation support.
View GST servicesStartup Support
Entity setup, statutory registrations, accounting setup and initial compliance structure.
View startup servicesQuestions from parent companies
Can you also be the statutory auditor of the entity?
No. Section 144 of the Companies Act, 2013 prohibits a company's statutory auditor from providing accounting and book-keeping services to that company, its holding company or its subsidiaries. Where we maintain the books, the statutory audit is carried out by another firm, and we prepare the schedules and reconciliations the auditor needs.
Can you report in the parent company's format?
Yes. The Indian books are kept under the applicable Indian framework and mapped to the group's chart of accounts, so the reporting pack arrives in the format the parent consolidates.
Which accounting software do you work in?
We work in the system the entity already uses, including Tally, Zoho Books and ERPNext, or in the group's system where access is provided.
Do you support branch and liaison offices as well as subsidiaries?
Yes. Branch, liaison and project offices have their own FEMA and ROC obligations, including the Annual Activity Certificate due by 30 September each year, and are covered on the same basis.
Can you take over from the current accountant mid-year?
Yes. The first step is a review of the books and the filing status to date, followed by a handover plan that sets out any pending periods and filings.
How are fees charged?
As a fixed monthly fee based on transaction volume, reporting requirements and the compliance obligations that apply, agreed in writing before work begins.
Discuss your India entity
Share the entity's structure, the parent's country, the accounting software in use, monthly transaction volume and any pending periods or filings.