Oct. 15 – Annual audit and compliance procedures are relatively simple for foreign representation entities compared to Indian setup entities.
Foreign Representation Entities
For annual compliance, foreign representation entities are required to file the following:
- Audited balance sheet
- Profit and loss accounts
- Director’s report
- Statutory auditors’ report
- Annual account of holding company
- List of places of business in India
Liaison office(s) that are not engaged in any trading, manufacturing or other commercial activities in India are (with approval of the Reserve Bank of India that is valid up to the end of the relevant accounting year) only required to file Indian business accounts, along with:
- A copy of an approval letter issued by the Reserve Bank of India, valid up to the end of the relevant accounting year
- Statement of receipts of payments made by the Indian branches of the company
- A statement of the company’s assets and liabilities in India
- A certificate that the company did not carry out any trading, manufacturing or commercial activity or undertake any invoicing of goods in India
All statements must be verified by an authorized representative of the foreign office and a chartered accountant practicing in India.
These documents must be submitted to the Registrar of Companies within nine months from the end of the financial year of the entity.
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