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The recurring RBI and FEMA filings a UK parent's Indian subsidiary needs to stay compliant after incorporation.
Once your Indian subsidiary receives foreign direct investment (FDI) from the UK parent, FEMA (Foreign Exchange Management Act) compliance becomes an ongoing obligation. These filings sit alongside — and are separate from — the tax filings needed to claim India-UK DTAA treaty rates on repatriated income.
Filed with the RBI within 30 days of allotting shares to the UK parent against inward FDI — the filing that formally records the investment in the subsidiary's capital structure.
Required for any share transfer between a resident and non-resident — relevant if the UK parent later restructures ownership or brings in a co-investor.
Filed annually with the RBI by every entity that has received FDI, regardless of whether any transaction occurred that year. Not transaction-triggered, which is exactly why it's the filing most foreign-owned subsidiaries miss.
FEMA compliance and DTAA treaty benefits are handled by different authorities (RBI vs. Indian tax authorities) but both depend on the same underlying paperwork discipline. A subsidiary with clean FEMA filing history has an easier time when its UK parent later needs a Tax Residency Certificate cross-check or faces scrutiny on a repatriation. We track both calendars together rather than treating them as separate workstreams.
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