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The recurring RBI and FEMA filings a US parent's Indian subsidiary needs to stay compliant after incorporation.
Once your Indian subsidiary is incorporated and receives foreign direct investment (FDI) from the US parent, FEMA (Foreign Exchange Management Act) compliance becomes an ongoing obligation — not a one-time task. Missing a filing deadline can hold up future fund remittances and, in some cases, attract penalties from the RBI.
Filed with the RBI within 30 days of allotting shares to the US parent against inward FDI. This is the filing that formally records the foreign investment in the subsidiary's capital structure.
Required whenever shares are transferred between a resident and non-resident — relevant if the US parent later transfers shares, brings in a co-investor, or restructures ownership.
The Foreign Liabilities and Assets return is filed annually with the RBI by every Indian entity that has received FDI or made overseas investment, regardless of whether there was any transaction that year. This is the filing most foreign-owned subsidiaries forget once the initial setup is done.
US corporate calendars and Indian RBI filing calendars don't align, and the FLA return in particular is easy to miss because it isn't triggered by a transaction — it's an annual requirement regardless of activity. We track these deadlines against your subsidiary's actual filing history so nothing falls through between your US finance team and your Indian entity.
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