4 Important things to do by an Indian Businessman after Company set up in Dubai & U.S.A

Being an Indian Individual Resident or an Indian Company, Once you have incorporated a company in Dubai, U.S.A, Singapore or any overseas Jurisdiction, you are required to follow the below mentioned Laws, Rules and Regulations in India.

Kindly take a note of it and see whether you have complied with all the Indian Regulations as mentioned below after the Company Setup in Dubai or any overseas jurisdiction -

a. Form FC with your Indian Bank
Reporting of Incorporation with your Indian Bank Within 30 days after incorporating a entity in overseas jurisdiction.

b. Annual FLA Return - before 15th July every year
only if you have a opened a branch or subsidiary Overseas (Individual shareholders are not required to submit this FLA Return)

c. Annual Performance Return APR - before 31st Dec every year
To be filed by all - Individual Shareholders also or if you have opened a Branch or Subsidiary in Overseas

d. Annual Audit Report along with APR Return to be filed in India -
Audit Report of your Overseas Entity by Overseas Auditor of that country -
in case Parent-Branch, Holding-Subsidiary concept.

Audit Report of your Overseas Entity either by Overseas Auditor of that country or by Auditor of your Home Country (Indian CA) -
in case Individual Shareholding in overseas Entity -
Subject to bank’s protocols and acceptance.

Majority of the Businessman and consultants are not aware about these regulations in India and the Businessman starts receiving Penalty as well as Non-compliance Notices from Reserve Bank of India RBI as well as from Indian Bankers. Hence, we thought to share the things in simplified manner to make Indian Businessman aware about these norms.

You need to contact the indian FEMA Consultant like Talreja & Talreja to assist you with all the above mentioned compliances to do hassle-free business out of India.


Frequently Asked Questions & Answers FAQs

1. To whom FEMA Provisions are applicable ?
FEMA Provisions in India are applicable to Indian Residents and Indian Companies

2. When FEMA Provisions are applicable to Indian Residents and Indian Companies ?
As soon as you plan to invest or transfer funds outside India, FEMA, ODI and LRS Norms get applicable to you. ODI means Overseas Direct Investment in case of Indian Companies making payment outside India and LRS means Liberalized Remittance Scheme in case of Indian Resident Individuals making payment outside India.

As soon as you form a company in Dubai or any overseas jurisdiction, FEMA provisions will get applicable in that case as well.

3. What are the FEMA Provisions to be followed in India after setting up a company overseas ?
You need to file Form FC, FLA, APR and Audit report of your overseas entity as mentioned above in detail with your Indian Bankers and RBI as per FEMA Norms.

4. What if my Issued and Paid up Capital in Overseas Entity is almost of a Zero value. Do i still need to file Form FC, APR and FLA Return in India ?
Yes. Even if you have zero capital issued or zero capital paid up, then also you need to comply with the FEMA Provisions and submit the Form FC, FLA, APR and Audit Report on case to case basis.

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