Every foreign company is required to prepare and file financial statements within a period of 6 months at the end of the financial year of the foreign company to which the financial statements relate to Delhi ROC in eForm number FC-3.
- eForm FC-3 is required to be filed pursuant to Section 381 of the Companies Act, 2013 and Rule 4, 5, and 6 of Companies (Registration of Foreign Companies) Rules, 2014.
According to Section 381of the Companies Act, 2013 every foreign company during a calendar year,
Should make a balance sheet and profit and loss account that, contains the particulars including or has annexed which attached to documents and deliver a copy of those documents to the Registrar. Provided that the Central Government may, by notification, direct that, in the case of any foreign company or class of foreign companies, the requirements of clause (a) shall not apply, or shall apply subject to such exceptions and modifications as specified in that notification.
According to Rule 4 of Companies (Registration of Foreign Companies) Rules,2014 every foreign company shall prepare a financial statement of its Indian business operations in accordance with Schedule III or as near thereto as may be possible for each financial year including documents required to be annexed thereto in accordance with the provisions of Chapter IX of the Act;
And documents relating to copies of the latest consolidated financial statements of the parent foreign company, as submitted by it to the prescribed authority in the country of its incorporation under the provisions of the law in that country.
Every foreign company with their financial statement is required to file with the Registrar, annex or attach thereto the following documents:
(A) Statement of Related party transaction, which shall include:
(i) Names of the person in India which shall be deemed to be the related party within the meaning of clause 76 of section 2 of the Act, of the foreign company or of any subsidiary or holding company of such foreign company or of any firm in which such foreign company or its subsidiary or holding company is a partner;
(ii) Nature of such relationship;
(iii) Description and nature of the transaction;
(iv) amount of such transaction during the year with opening, closing, highest and lowest balance during the year and provisions made (if any) in respect of such transactions;
(v) Reason for such transaction;
(vi) Material effect of such transaction on both the parties;
(vii) Amount is written off or written back in respect of dues from or to the related parties;
(viii) A declaration that such transactions were carried out at arm’s length basis;
(ix) Any other details of the transaction necessary to understand the financial impact.
(B) Statement of Repatriation of profits which shall include:
(i) Amount of profits repatriated during the year;
(ii) Recipients of the repatriation;
(iii) Form of repatriation;
(iv) Dates of repatriation;
(v) Details if repatriation made to a jurisdiction other than the residence of the beneficiary;
(vi)Mode of repatriation; and
(vii) Approval of Reserve Bank of India or any other authority if any.
(C) Statement of transfer of funds (including dividends if any) which shall, in relation to any fund transfer between the place of business of the foreign company in India and any other related party of the foreign company outside India including its holding, subsidiary and associate company, include:
(i) Date of such transfer;
(ii) Amount of fund transferred or received;
(iii) Mode of receipt or transfer of fund;
(iv) Purpose of such receipt or transfer; and
(v) Approval of Reserve Bank of India or any other authority, if any.
The above said documents have to be delivered to the Registrar within 6 months at the end of the financial year of the foreign company.
According to Rule 5 of Companies (Registration of Foreign Companies) Rules,2014 every foreign company shall get its accounts pertaining to the Indian business operations prepared in accordance with the requirements of clause (a) of sub-section (1) of section 381 and rule 4, audited by a practicing Chartered Accountant in India or a firm or limited liability partnership of practicing Chartered Accountants.
According to Rule 6 of Companies (Registration of Foreign Companies) Rules,2014 For the purposes of subsection (3) of section 381, every foreign company has to file to the Registrar, along with their financial statement, in Form No. FC-3 with fee as provided in Annexure to Companies (Registration Offices and Fees) Rules, 2014 a list of all the places of business established by the foreign company in India as on the date of balance sheet.
Due Date of form FC-3
- The due date for filing the annual accounts has to be filed within 9 Months from the close of the financial year.
- The Companies (Fee for filings with Registrar of Companies) Rules, 2014 – 6000 rupees
- Additional fees rules:
Period of delays
Up to 30 days
2 times of normal fees
More than 30 days and up to 60 days
4 times of normal fees
More than 60 days and up to 90 days
6 times of normal fees
More than 90 days and up to 180 days
10 times of normal fees
More than 180 days
12 times of normal fees
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