Foreign companies with a subsidiary in India
An Indian subsidiary files something almost every month. GST returns and TDS payments run through the year. The annual filings with the Ministry of Corporate Affairs and the income tax return follow the 31 March year end. We keep the subsidiary’s books in the form the parent needs and file each of these on time.
Checked against the sources on 14 November 2026. Each figure links to the authority that published it.
In short
- Financial year
- 1 April to 31 March
- Directors
- One must have stayed in India for at least 182 days in the financial year1
- Audit
- Every company, every year1
- Shares issued to the parent
- Form FC-GPR within 30 days2
- Income tax return
- 30 November when the company trades with its parent3
Checked against the sources on 14 November 2026.
The year in an Indian subsidiary
| When | What | With |
|---|---|---|
| The 7th of each month | TDS deducted in the previous month is paid. March’s tax is paid by 30 April.4 | Income Tax Department |
| The 20th of each month | GSTR-3B for the previous month, for monthly filers.5 | GST Network |
| 15 June, 15 September, 15 December, 15 March | Advance tax, in instalments that reach 15%, 45%, 75% and 100% of the year’s tax.6 | Income Tax Department |
| 31 July, 31 October, 31 January, 31 May | Quarterly TDS statements.4 | Income Tax Department |
| 15 July | The FLA return.7 | Reserve Bank of India |
| By 30 September | The annual general meeting, within six months of the 31 March year end.1 | Members |
| Within 30 and 60 days of the meeting | Financial statements in Form AOC-4, then the annual return in Form MGT-7 or MGT-7A.1 | Registrar of Companies |
| 31 October or 30 November | The income tax return. The later date applies where a transfer pricing report is required.3 | Income Tax Department |
Rules a foreign parent should know
At least one director must have stayed in India for 182 days or more during the financial year. A private company needs two directors in all.1
Every company appoints an auditor and has its accounts audited each year. There is no exemption for a small subsidiary.1
Each issue of shares to the parent is reported to the RBI in Form FC-GPR within 30 days.2 The company also files the FLA return by 15 July each year.7
A domestic company pays income tax at 25% or 30% depending on its turnover, or 22% if it gives up specified deductions, before surcharge and cess.3 The detail is on our India page.
What we do
- Keep the books in the group’s system or in Tally, Zoho Books or SAP
- File GST returns, deposit TDS and file the quarterly statements
- Compute advance tax and prepare the income tax return
- Prepare the Ministry of Corporate Affairs filings and the RBI reports
- Send the parent a monthly pack in its own format, under US GAAP or IFRS where it asks for that
- Reconcile the balances between the subsidiary and the rest of the group
Questions we are asked
Can the parent’s own staff be the only directors?
Only if one of them has stayed in India for at least 182 days in the financial year. Otherwise the board needs one more director who has.1
Is an audit needed in the first year?
Yes. Every company appoints an auditor, and the first set of accounts is audited like any other.1
Sources
- India Code, The Companies Act, 2013. Sections 92, 96, 137, 139 and 149.
- Reserve Bank of India, Foreign Exchange Management (Mode of Payment and Reporting of Non-Debt Instruments) Regulations, 2019. Notification No. FEMA 395/2019-RB, 17 October 2019.
- Income Tax Department, Domestic company: tax rates and returns. Assessment year 2026-27.
- Income Tax Department, Tax deductor: payment and statement due dates.
- Goods and Services Tax Network, GSTR-3B user manual.
- Income Tax Department, FAQs on advance tax.
- Reserve Bank of India, FAQs on the Annual Return on Foreign Liabilities and Assets. Updated 1 July 2026.