GLOSSARY
Plain English definitions of the FEMA, tax, company law and labour terms foreign founders meet in India, each linked to the Krystal7 guides that use it.
Every term links back to the guides
A TO Z
Each definition names the law or regulator behind it and links to the guides that explain it in practice.
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A
The step in which the Udyam portal sends a one time password to the mobile number linked to the Aadhaar of the authorised signatory. Aadhaar is the identity number issued by UIDAI under the Aadhaar Act, 2016. A company cannot finish Udyam registration without it, so a foreign director without an Indian Aadhaar cannot do it.
Used in: Udyam Registration for Foreign-Owned Companies in India (2026 Guide)
Under the Explanation to section 2(b) of the MSMED Act, 2006, acceptance is the day goods are delivered or services rendered, or the day a written objection raised within 15 days is removed. With no objection in 15 days, the day of actual delivery is deemed acceptance. The payment clock starts here.
Used in: MSME Form 1 Due Date 2026 and the 45 Day Payment Rule for Companies
A party whose main purpose in taking part in an arrangement is to obtain a tax benefit for the assessee, whether or not it is a connected person. Under section 182 of the Income Tax Act, 2025 the tax officer can disregard it or treat it as one person with another party.
Used in: GAAR in India for Foreign Companies and Holding Structures (2026)
The date on which a UK company's financial year ends, set under sections 391 and 392 of the Companies Act 2006 and changeable by notice to Companies House. An Indian company has no such choice, because section 2(41) of the Companies Act, 2013 fixes 31 March.
Used in: Statutory Audit of a UK Subsidiary in India for the UK Parent (2026)
The active business test in paragraph 5 of CBDT Circular No. 6 of 2017 requires passive income of at most 50 percent of total income, and less than 50 percent of assets, employees and payroll in India, on three year averages. A company that passes is presumed to have POEM outside India if most board meetings are held abroad.
Used in: Place of Effective Management (POEM) in India for Foreign Companies
A fee based on the amount secured that the Registrar charges when a company registers a charge in the second 60 day window under the second proviso to section 77(1) of the Companies Act, 2013. The rate is set in the Companies (Registration Offices and Fees) Rules, 2014.
Used in: CHG-1 Form for Registering a Charge on Loans to an Indian Company
A director the board appoints between general meetings under section 161(1) of the Companies Act, 2013, where the articles allow it. The person holds office only until the next annual general meeting, or the last date on which it should have been held, unless the members confirm the appointment.
Used in: Removal of Director in India, Resignation and Replacement Rules 2026
The late filing charge the Registrar of Companies levies under section 403 of the Companies Act, 2013 and the Companies (Registration Offices and Fees) Rules, 2014. For AOC-4 and MGT-7 it is INR 100 for each day of delay on each form, on top of the normal fee. It does not settle the separate penalty under section 137(3) or 92(5).
Used in: MGT-7 and AOC-4 Annual Filing for Foreign Owned Companies in 2026
The set of Schedule III notes, added from 1 Apr 2021, on matters such as title deeds, loans to promoters and directors, benami proceedings, wilful defaulter status, struck off companies, unregistered charges, layers of subsidiaries, ratios and funds routed through intermediaries.
Used in: Schedule III Companies Act Format and Key Disclosures in 2026
An Indian address where the Trade Marks Registry sends notices about an application or registration. Under the Trade Marks Act, 1999 and the Trade Marks Rules, 2017, an applicant with no principal place of business in India must give one, usually the office of its Indian agent or attorney.
Used in: Top Trademark Registration Services in India (2026); Trademark Registration for a Foreign Company in India (2026)
An officer of the Central Government, not below the rank of Registrar, appointed under section 454 of the Companies Act, 2013 to impose penalties. In practice the Registrar of Companies for the region acts as adjudicating officer and passes the penalty order.
Used in: What ROC Penalty Orders Teach Foreign Owned Companies
The process under section 454 of the Companies Act, 2013 in which a Registrar of Companies, acting as adjudicating officer, imposes a penalty after a hearing. An appeal lies to the Regional Director within 60 days of receiving the order.
Used in: Significant Beneficial Owner Case on LinkedIn India and Group CEOs
The denominator in the rule 89(4) refund formula. It adds the turnover in a State or Union territory, excluding services, to the turnover of zero rated and other services, and leaves out exempt supplies other than zero rated supplies.
Used in: GST Refund for Exporters of Services Under LUT with RFD-01 (2026)
A DGFT authorisation under paragraph 4.03 of the Foreign Trade Policy 2023 to import inputs used in export products without paying basic customs duty, IGST and other listed duties. For most products it carries a 15 percent minimum value addition and an 18 month export obligation.
Used in: Customs Duty in India 2026: BCD, SWS, IGST and Valuation Explained
A binding agreement between a taxpayer and the Central Board of Direct Taxes that fixes the transfer pricing method or price for up to five future years, with up to four rollback years. Section 168 of the Income Tax Act, 2025 governs it, and the application is made in Form 51.
Used in: Budget 2026 Changes for Foreign Owned Companies and Non Residents; Financial Reporting for Foreign Subsidiaries in India (2026); Safe Harbour Rules for Transfer Pricing in India (2026)
A payment sent abroad from India before goods are shipped or services are received. Under regulation 10 of the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, the AD bank permits it after checking the need, and the importer routes later payments through the same bank.
Used in: Advance Remittance for Import Under FEMA, Limits and IDPMS (2026)
The report of foreign investment money received by an Indian company, due within 30 days of receipt. Regulation 13.1(1) of FEMA 20(R)/2017-RB named it, and paragraph 9(1)(A) of Schedule 1 to FEMA 20/2000-RB required the same report earlier. FEMA 395/2019-RB, notified on 17 Oct 2019, has no ARF.
Used in: FC-GPR Compounding in 2026 and What RBI Charged for Late Filings
Income tax paid during the tax year on the current year's estimated income, under sections 404 to 408 of the Income Tax Act, 2025. A company whose tax for the year is INR 10,000 or more pays it in four instalments by 15 June, 15 September, 15 December and 15 March.
Used in: Advance Tax Due Dates for Companies in India Under the 2025 Act; Year End Closing Checklist for an Indian Subsidiary at 31 March
The single tier of AEO accreditation for logistics providers, custodians or terminal operators, customs brokers and warehouse operators. It needs physical verification of premises and covers only the accredited operator, not its clients. Importers and exporters use tiers T1, T2 and T3 instead.
Used in: Authorised Economic Operator in India 2026: AEO Tiers and Benefits
A woman of any age, whether employed or not, who alleges sexual harassment at a workplace, under section 2(a) of the POSH Act, 2013. A visitor, client employee or job applicant can be an aggrieved woman as well as an employee.
Used in: POSH Compliance Checklist for Foreign Owned Companies in India
A linked form filed with SPICe+ Part B that applies for GST (optional), EPFO and ESIC registration, and professional tax where the state requires it, and opens the company bank account. It saves separate applications to each agency after the Certificate of Incorporation arrives.
Form INC-35, the linked form filed with SPICe+ at incorporation. It obtains EPFO and ESIC codes, professional tax registration in Maharashtra and Karnataka, a bank account application and, optionally, GST and a Delhi shops and establishments registration.
Used in: Company Registration Fees in India 2026: Every Government Charge; Shops and Establishment and Professional Tax for New Companies
A duty of customs on specified goods, levied under section 124 of the Finance Act, 2021. Effective rates sit in Notification 11/2021-Customs as amended. Where AIDC applies, the basic customs duty on the line is usually lower. AIDC is not creditable against GST.
Used in: Customs Duty in India 2026: BCD, SWS, IGST and Valuation Explained
The Norwegian private limited liability company, governed by the Private Limited Liability Companies Act of 1997 and registered with the Brønnøysund Register Centre. It is the common form of Norwegian parent investor. The Indian filing needs its registration evidence, governing documents, investment approval and signatory authority, certified and translated as required.
Used in: Company Registration in India from Norway: Process, Cost and Timeline (2026)
The maximum total cost, including interest and fees, that an Indian importer may pay on credit from an overseas supplier or bank. RBI sets it under the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018 and its Master Direction on trade credits. Regulation 10(4) of the 2026 Export and Import Regulations applies it to interest on delayed import payments.
Used in: Advance Remittance for Import Under FEMA, Limits and IDPMS (2026)
A person the board appoints under section 161(2) of the Companies Act, 2013 to act for a director who is away from India for at least three months. The articles or a general meeting resolution must allow it, and the alternate leaves office when the original director returns to India.
Used in: Removal of Director in India, Resignation and Replacement Rules 2026
A group entity, other than the ultimate parent, that the group appoints to file the CbC report in its own country, as defined in section 511(10)(c) of the Income Tax Act, 2025. India accepts that filing in place of a local Form 59 only if the section 511(6) conditions, including an exchange agreement with India, are met.
Used in: Master File and CbCR Requirements in India (2026), Forms 56 to 60
A merger in which all property and all liabilities of the amalgamating company pass to the amalgamated company, and holders of at least three fourths in value of its shares become shareholders of the amalgamated company. Section 2(6) of the Income Tax Act, 2025 defines it, and section 70 gives tax neutrality to an amalgamation into an Indian company.
Used in: Cross Border Merger in India Under Rule 25A and FEMA (2026); Reverse Flip to India for US and Singapore Holding Companies (2026)
The tax under section 56(2)(viib) of the Income Tax Act, 1961 on a closely held company that issued shares above fair market value. The excess premium was taxed as the company's income from other sources. The Finance (No. 2) Act, 2024 switched it off from AY 2025-26.
Used in: Angel Tax Abolished in India and What Foreign Investors Still Face; FEMA Pricing Guidelines for Share Issue and Transfer in 2026
A Chartered Accountant's certificate, required by FEMA 22(R)/2016-RB, confirming that a liaison or branch office carried on only permitted activities in the year to 31 March. It is filed with audited financial statements by 30 September with the designated AD bank and the Director General of Income Tax (International Taxation), New Delhi.
Used in: Branch Office in India 2026 with RBI Rules, Tax Rate and Project Office; Converting a Branch or Liaison Office into an Indian Subsidiary; Liaison Office in India in 2026 with RBI Rules, AAC and Form 162
The yearly meeting of members required by section 96 of the Companies Act, 2013, where the financial statements are adopted and other ordinary business is done. It is held within six months of the year end, or nine months for the first AGM.
Used in: Board Meeting Rules Under the Companies Act for Non Resident Directors
Paid leave under section 32 of the OSH Code, 2020 for a worker who has worked 180 days in a calendar year, earned at one day for every 20 days of work. Up to 30 days carry forward, and leave is encashable on separation.
Used in: Working Hours Under the Labour Code with Overtime and Leave in 2026
The yearly return an Indian resident files for each foreign entity in which its equity counts as overseas direct investment. Regulation 10(4) of the Foreign Exchange Management (Overseas Investment) Regulations, 2022 requires it, in Form APR through the investor's authorised dealer bank, on audited accounts unless the investor has no control and host law requires no audit.
Used in: Annual Performance Report (APR) for Overseas Investment in 2026; Best FEMA Consultants in India (2026): How Foreign Founders Should Choose; ODI Rules 2022 for Indian Companies Investing Abroad in 2026
Turkish joint stock and limited companies under the Turkish Commercial Code (Law No. 6102) that can act as the parent investor in an Indian subsidiary. The Indian filing needs the parent's registration evidence, governing documents, investment approval and signatory authority, apostilled by the competent Turkish authority and translated.
Used in: Company Registration in India from Turkey: Process, Cost and Timeline (2026)
An apostille is a certificate issued under the Hague Apostille Convention, 1961 that authenticates the signature, seal or stamp on a public document from one member country for use in another. India joined in 2005, so a valid apostille replaces attestation by an Indian embassy, except where India or the other country has objected to the Convention applying between them.
Used in: Apostille or Notarisation for Company Registration in India; Choosing an India Registration Service for Foreign Founders; Company Registration in India for British Citizens; Company Registration in India for US Citizens (2026); Company Registration in India from Argentina: Process, Cost and Timeline (2026) and 100 more
Under section 2(b) of the MSMED Act, 2006, the appointed day is the day after the agreed credit period, which cannot exceed 45 days from acceptance. With no written agreement it is the day after 15 days from acceptance. A buyer must pay a micro or small supplier before it, and section 16 interest runs from it.
Used in: MSME Form 1 Due Date 2026 and the 45 Day Payment Rule for Companies
The government with power to make rules and enforce a labour code. For a private company office it is usually the state government under the Code on Wages, the Industrial Relations Code and the OSH Code, so state rules set forms and registers. PF and ESI stay central.
Used in: New Labour Code 2026 and What Foreign Owned Companies Must Change
An exporter authorised by EFTA customs to make out an origin declaration on a commercial document instead of obtaining an EUR.1 certificate. Under TEPA only approved exporters in EFTA states may use an origin declaration, which Indian customs accepts as proof of origin under Notification 59/2025-Customs (N.T.).
Used in: India EFTA TEPA 2026: What Swiss and Norwegian Investors Should Know
The three member panel, chaired by a High Court judge, that decides whether a case referred by the Commissioner is an impermissible avoidance arrangement. Section 274 of the Income Tax Act, 2025 sets its procedure and six month limit. Its directions bind the assessee and the tax authorities, and no appeal lies against them under the Act.
Used in: GAAR in India for Foreign Companies and Holding Structures (2026)
The price at which a transaction would be carried out between independent parties in comparable circumstances. Indian transfer pricing law, now in sections 161 to 173 of the Income Tax Act, 2025 and earlier in sections 92 to 92F of the 1961 Act, requires international transactions between associated enterprises to be priced at ALP and benchmarked.
Used in: Advance Tax Due Dates for Companies in India Under the 2025 Act; Arm's Length Price Methods in India: 6 Methods Explained for Founders; Choosing an India Registration Service for Foreign Founders; Company Registration in India from Armenia: Process, Cost and Timeline (2026); Company Registration in India from Austria: Process, Cost and Timeline (2026) and 19 more
The arm's length range is the band from the 35th to the 65th percentile of comparable prices or margins. It applies where the most appropriate method is CUP, resale price, cost plus or TNMM and there are at least six comparables, as in old rule 10CA. A transfer price inside the range needs no adjustment.
Used in: Arm's Length Price Methods in India: 6 Methods Explained for Founders
A transaction between two related parties conducted as if they were unrelated, so that there is no conflict of interest, as defined in Explanation (b) to section 188 of the Companies Act, 2013. The Act prescribes no pricing method, so the board records the evidence it relied on.
Used in: Related Party Transactions Under Section 188 for an Indian Subsidiary
The regulations for the management of a company under section 5 of the Companies Act, 2013. They cover shares, transfers, meetings, directors and dividends. Section 5(8) applies the model articles in Schedule I wherever the company's own articles do not exclude or modify them.
Used in: Memorandum of Association and Articles for a Foreign Owned Subsidiary
A payment arrangement among the central banks of member countries, including the Reserve Bank of India, that settles eligible trade between them by multilateral netting. RBI's Master Direction on Export of Goods and Services, used before 1 Oct 2026, kept trade with ACU countries outside the set off arrangement.
Used in: Set Off Export Receivables Against Import Payables Under FEMA (2026)
The value on which Indian customs charges duty. Under section 14 of the Customs Act, 1962 it is the transaction value of the goods, including freight and insurance to the place of import and the additions in rule 10 of the Customs Valuation Rules, 2007, converted at the CBIC notified exchange rate.
Used in: Customs Duty in India 2026: BCD, SWS, IGST and Valuation Explained
The tax on total income determined on processing of the return under section 270(1) or on regular assessment, less TDS, TCS, specified reliefs and tax credits. Section 424 of the Income Tax Act, 2025 charges interest when advance tax paid is below 90 percent of this figure.
Used in: Advance Tax Due Dates for Companies in India Under the 2025 Act
The independent check SEBI requires on BRSR Core indicators. Assurance may follow ISAE 3000, ISSA 5000 or ICAI's SSAE 3000. Assessment follows standards that the Industry Standards Forum (ISF) develops in consultation with SEBI. The provider must have no conflicting services to the group.
Used in: BRSR Reporting in India and Foreign Owned Subsidiaries (2026)
The twelve months starting 1 April after the previous year, in which income was assessed, under section 2(9) of the Income Tax Act, 1961. AY 2026-27 is the last one for new income; the Income Tax Act, 2025 does not use the term.
Used in: Tax Year Under the Income Tax Act, 2025 and the End of Assessment Year
A company in which another company has significant influence but which is not its subsidiary. Under section 2(6), significant influence means at least 20 percent of total voting power. Control of or participation in business decisions under an agreement also counts.
Used in: Holding and Subsidiary Company in India Under Section 2(87)
A company that participates directly or indirectly in the management, control or capital of another, or is under common control with it, as the transfer pricing provisions of the Income Tax Act, 2025 define it (old section 92A). An Indian company and its foreign parent are usually associated enterprises, so their dealings must be at arm's length.
Used in: Arm's Length Price Methods in India: 6 Methods Explained for Founders; Company Registration in India from Ghana: Process, Cost and Timeline (2026); Company Registration in India from Ireland: Process, Cost and Timeline (2026); Company Registration in India from Morocco: Process, Cost and Timeline (2026); Company Registration in India from Thailand: Process, Cost and Timeline (2026) and 11 more
A dated record of every change to accounting entries that accounting software must keep under the proviso to rule 3(1) of the Companies (Accounts) Rules, 2014. Nobody may disable it, and the statutory auditor reports on it under rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.
Used in: Audit Trail under the Companies Act and the Edit Log Rule in 2026; MIS Report Format for an Indian Subsidiary of a Foreign Parent (2026); Statutory Audit of a Foreign Owned Indian Subsidiary in 2026; Statutory Audit of a US Subsidiary in India, Timeline and Penalties
The limit in section 139(2) of the Companies Act, 2013 on consecutive terms: one five year term for an individual and two for a firm, then five years off. Rule 5 of the Audit Rules applies it to private companies with paid up capital of INR 50 crore or more, among others.
Used in: Auditor of an Indian Subsidiary and the Parent's Global Audit Firm; First Auditor Appointment and Form ADT-1 for Foreign Owned Companies
The trade agreement between Australia and India, signed on 2 Apr 2022, that entered into force on 29 Dec 2022. It cut tariffs on goods trade. The Act that implemented it in Australia also inserted section 11J into the International Tax Agreements Act 1953 for Indian firms' offshore technical services.
Used in: India Australia DTAA for Companies with Rates, 2022 Change and ECTA
Authorised capital, also called nominal capital, is the maximum share capital a company's memorandum of association allows it to issue. It is a ceiling, not money paid in. In India it sets the MCA registration fee and, in many states, the stamp duty on the articles.
Used in: Company Registration Fees in India 2026: Every Government Charge
An AD Category I bank is a commercial bank that the Reserve Bank of India authorises under section 10 of FEMA, 1999 to deal in foreign exchange for current and capital account transactions. It receives FDI and export proceeds, checks FEMA filings such as FC-GPR before they reach RBI, holds EEFC accounts and approves most branch and liaison office applications.
Used in: Advance Remittance for Import Under FEMA, Limits and IDPMS (2026); Annual Performance Report (APR) for Overseas Investment in 2026; Bank Account for a Foreign Subsidiary in India, KYC and Timeline 2026; Best FEMA Consultants in India (2026): How Foreign Founders Should Choose; Branch Office in India 2026 with RBI Rules, Tax Rate and Project Office and 32 more
A business in the international supply chain that Indian customs accredits as compliant and secure under CBIC Circular 33/2016-Customs, based on the WCO SAFE Framework of Standards. Accreditation is voluntary and gives faster clearance, lower guarantees and, for higher tiers, deferred duty payment.
Used in: Authorised Economic Operator in India 2026: AEO Tiers and Benefits
The person a corporate member, such as a foreign parent, appoints by board resolution under section 113 of the Companies Act, 2013 to attend and vote at a company's general meetings. The representative can exercise the same rights as the body corporate could as an individual member.
Used in: Board Meeting Rules Under the Companies Act for Non Resident Directors; Memorandum of Association and Articles for a Foreign Owned Subsidiary
The body that gave binding rulings to non residents on their Indian tax position under sections 245N to 245V of the Income Tax Act, 1961. Proviso (iii) to section 245R(2) barred an application on a transaction designed prima facie to avoid income tax.
Used in: Tiger Global Case 2026, Treaty Shopping and Mauritius Investors
Under the automatic route, a person resident outside India can invest in an Indian company without prior government approval, subject to the sector caps and conditions in the Foreign Exchange Management (Non Debt Instruments) Rules, 2019. Investment by an entity or citizen of a country sharing a land border with India is excluded under Press Note 3 (2020 Series).
Used in: Branch Office vs Subsidiary in India for a UAE Company (2026); Chemical Company Registration in India for Foreign Investors (2026); Company Registration in India for Foreign Founders; Company Registration in India for US Citizens (2026); Company Registration in India from Azerbaijan: Process, Cost and Timeline (2026) and 45 more
B
The main duty on goods imported into India, levied under section 12 of the Customs Act, 1962 at the rates in the First Schedule to the Customs Tariff Act, 1975. The government can lower the rate for specified goods by an exemption notification under section 25. BCD is not creditable against GST.
Used in: Customs Duty in India 2026: BCD, SWS, IGST and Valuation Explained; UK India Free Trade Agreement in Force: Business Impact (2026)
The analysis that compares a related party price or margin with those of comparable independent companies or transactions, usually drawn from commercial databases, to show the result falls within the arm's length range. It is the core of the local file under rule 84 of the Income Tax Rules, 2026 and is refreshed each year.
Used in: Transfer Pricing Between UK Parent and Indian Subsidiary; Transfer Pricing Documentation Requirements in India
The right to exercise, or cause to be exercised, the rights attached to a share, and to receive its dividends or other distributions. Section 89(10) of the Companies Act, 2013 defines it, including rights held through a contract or arrangement.
Used in: Nominee Shareholder for a Wholly Owned Subsidiary in India
The declarations section 89 of the Companies Act, 2013 requires when a registered shareholder holds shares for someone else. The nominee files MGT-4 and the beneficial owner files MGT-5. The company then files MGT-6 with the Registrar within 30 days.
Used in: What ROC Penalty Orders Teach Foreign Owned Companies
For a company customer, the natural person who owns or is entitled to more than 10 percent of its shares, capital or profits, alone or through other entities, or who controls it through other means. Rule 9(3) of the PML (Maintenance of Records) Rules, 2005 and RBI's KYC Directions define it.
Used in: Bank Account for a Foreign Subsidiary in India, KYC and Timeline 2026
For the land border rule, the natural person who ultimately owns or controls the investor, tested under rule 9(3) of the Prevention of Money Laundering (Maintenance of Records) Rules, 2005 plus control. After S.O. 2174(E) of 1 May 2026, non controlling beneficial ownership of up to 10 percent stays on the automatic route.
Used in: Company Registration in India from Bangladesh: Process, Cost and Timeline (2026)
Rule 9(3) of the Prevention of Money Laundering (Maintenance of Records) Rules, 2005 treats as a company's beneficial owner the individual who owns or is entitled to more than 10 percent of its shares, capital or profits, or who exercises control through other means. Banks apply it for KYC, and India's land border FDI test now uses the same definition.
Used in: Company Registration in India from Hong Kong: Process, Cost and Timeline (2026); Company Registration in India from Nepal (2026)
The natural person who ultimately owns or controls an investor. Section 2(1)(fa) of the Prevention of Money Laundering Act, 2002 defines it. Rule 9(3) of the PML (Maintenance of Records) Rules, 2005 sets the tests, such as more than 10 percent of a company's shares, capital or profits, or control by other means.
Used in: Press Note 3 Rules for FDI from Land Border Countries (2026)
The question whether an independent company in the Indian subsidiary's position would pay for a group service or perform it itself. Indian courts apply it when deciding whether a management fee has an arm's length price above nil, and whether the expense is deductible at all.
Used in: Management Fees Transfer Pricing and What Indian Courts Accept
The customs declaration an importer files under section 46 of the Customs Act, 1962 to clear goods. For FEMA purposes, its number, port code and date are the evidence that goods paid for in advance reached India, and the AD bank links them to the remittance in IDPMS.
Used in: Advance Remittance for Import Under FEMA, Limits and IDPMS (2026); Customs Duty in India 2026: BCD, SWS, IGST and Valuation Explained
Product certification by the Bureau of Indian Standards under the Bureau of Indian Standards Act, 2016. Goods covered by a Quality Control Order or the compulsory registration scheme cannot be made, imported or sold in India without a BIS licence or registration, so a manufacturer checks its products against these lists before production starts.
Used in: Chemical Company Registration in India for Foreign Investors (2026); Manufacturing Company Registration in India for Foreign Parents (2026)
Blocked credit is input tax credit the CGST Act, 2017 denies even though the purchase is a business cost. Section 17(5) lists these items, including most motor vehicles for carrying people, food and beverages, club memberships, works contracts for building immovable property, and goods lost, stolen, destroyed, written off or given as gifts or free samples.
Used in: 57th GST Council Meeting Recommendations Explained (8 October 2026); GST Input Tax Credit Rules Explained (2026)
The undertaking in Form H that an SEZ unit signs under rule 22 of the SEZ Rules, 2006 before claiming duty exemptions. It covers proper use and accounting of goods and positive net foreign exchange. The Development Commissioner and the Specified Officer accept it jointly.
Used in: SEZ in India 2026: Setting Up an SEZ Unit as a Foreign Company
The net profit in a company's statement of profit and loss prepared under Schedule III to the Companies Act, 2013, as adjusted by the additions and deductions in section 206(1)(c) and (d) of the Income Tax Act, 2025. MAT is charged on this figure.
Used in: Minimum Alternate Tax in India for Foreign Companies and Subsidiaries
Records a company keeps of money received and spent, sales and purchases of goods and services, assets and liabilities, and prescribed cost items, as defined in section 2(13) of the Companies Act, 2013. Section 128 requires them on accrual basis and double entry, kept for eight financial years.
Used in: Audit Trail under the Companies Act and the Edit Log Rule in 2026
An extension of a foreign company in India that is not a separate legal entity, approved through an AD Category I bank under the FEMA branch office regulations. It may carry out only permitted activities, cannot do retail trading, and may manufacture only in a Special Economic Zone. A foreign company pays the higher foreign company tax rate.
Used in: Branch Office in India 2026 with RBI Rules, Tax Rate and Project Office; Branch Office vs Subsidiary in India for a UAE Company (2026); US LLC vs India Private Limited: Can a US LLC Do Business in India? (2026)
A subset of BRSR key performance indicators across nine ESG attributes, introduced by SEBI's circular of 12 Jul 2023. Listed entities obtain assessment or assurance of these indicators on a glide path by market capitalisation, and the same indicators apply to value chain disclosures.
Used in: BRSR Reporting in India and Foreign Owned Subsidiaries (2026)
The domestic test in section 9(9) of the Income Tax Act, 2025 (old Explanation 2 to section 9(1)(i)) for when a non resident's business income accrues in India. It covers operations in India, dependent agents and significant economic presence, and is wider than a treaty PE.
Used in: Significant Economic Presence and Business Connection in India 2026
The ESG report that the top 1,000 listed entities by market capitalisation include in their annual report under regulation 34(2)(f) of the SEBI LODR Regulations, 2015. It follows the nine principles of the National Guidelines on Responsible Business Conduct, with essential and leadership indicators.
Used in: BRSR Reporting in India and Foreign Owned Subsidiaries (2026)
A visa for commercial visits that are not employment, granted under the Visa Manual summarised in MHA's Annex III, paragraph 40. Permitted purposes include setting up a venture, board and general meetings, recruitment and sales. Paragraph 41 excludes full time employment, money lending and petty trade.
Used in: Business Visa India 2026 for Foreign Founders and Board Directors
A buyback is a company purchasing its own shares under section 68 of the Companies Act, 2013, capped at 25 percent of paid up capital and free reserves. From 1 Apr 2026 the shareholder is taxed on the capital gain, not a deemed dividend, and a promoter bears extra tax under section 69 of the Income Tax Act, 2025.
Used in: Buyback of Shares by an Indian Subsidiary from a Foreign Parent (2026); Repatriation of Profits from India to a Foreign Parent (2026)
C
Equity shares, debentures, preference shares and share warrants issued by an Indian company, as the Foreign Exchange Management (Non Debt Instruments) Rules, 2019 define them. Form FC-GPR reports an issue of equity shares, compulsorily convertible preference shares and compulsorily convertible debentures to a non resident.
Used in: FC-GPR Filing Consultants in India: 2026 Compliance Guide
A reserve that section 69 of the Companies Act, 2013 requires when a company buys back shares out of free reserves or securities premium. The company transfers a sum equal to the nominal value of the shares bought back. Section 69(2) lets the company apply it to pay up fully paid bonus shares.
Used in: Buyback of Shares by an Indian Subsidiary from a Foreign Parent (2026)
The EU charge on the embedded carbon in imports such as steel, aluminium, cement and fertilisers. It is EU law, not part of Indian customs. The India EU FTA addresses it in a separate annex with an assurance on future flexibilities.
Used in: India EU FTA 2026: Status, Tariffs and What Changes for EU Companies
The Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020, made under section 28DA of the Customs Act, 1962. They set what an Indian importer must declare, hold and produce when claiming any FTA duty rate, and how customs verifies the claim.
Used in: India EU FTA 2026: Status, Tariffs and What Changes for EU Companies
A departure in an Indian Accounting Standard from the IFRS it is based on, made to suit Indian law or conditions. Each notified Ind AS lists its differences from the IFRS in an appendix, which is why Ind AS accounts cannot claim compliance with IFRS.
Used in: Ind AS Applicability for a Foreign Owned Private Company in 2026
A vacancy on the board that arises before a director's term ends in the normal course, for example on death or resignation. Section 161(4) of the Companies Act, 2013 lets the board of a public company fill it; a private company follows its articles.
Used in: Removal of Director in India, Resignation and Replacement Rules 2026
A vacancy in the office of auditor that arises during a term, for example on resignation, death or disqualification under section 141(4) of the Companies Act, 2013. Section 139(8) lets the board fill it within 30 days. A vacancy caused by resignation also needs the members' approval.
Used in: First Auditor Appointment and Form ADT-1 for Foreign Owned Companies
A merchant banker registered with SEBI in Category I. Rules 15(6)(d) and 15(8)(g) of the Income Tax Rules, 2026 require such a merchant banker to value unlisted equity shares for the perquisite on sweat equity or ESOPs, as on the exercise date or a date up to 180 days before it.
Used in: RSU vs ESOP Tax in India 2026 for Employees of a Foreign Parent; Sweat Equity Shares in India for Private and Foreign Owned Companies
The central registry, run by CERSAI under the PML Rules, that stores customer KYC records. Banks upload the KYC of company accounts opened on or after 1 Apr 2021 and pass the KYC Identifier to the customer, so other regulated entities can reuse it.
Used in: Bank Account for a Foreign Subsidiary in India, KYC and Timeline 2026
The MCA office that processes name reservation through RUN and SPICe+ Part A, and incorporation applications, for the whole of India. Its Registrar approves or rejects names under rule 9 of the Companies (Incorporation) Rules, 2014, allowing one resubmission window of 15 days.
Used in: Change Company Name in India with RUN, MGT-14 and INC-24 (2026); Company Name Approval in India and Common Rejection Reasons
C-PACE is the Registrar office the Ministry of Corporate Affairs set up by notification S.O. 1269(E) of 17 Mar 2023 to process voluntary strike off applications in Form STK-2 for all of India. It examines the application, publishes the STK-6 notice and, if no objection succeeds, publishes STK-7 to dissolve the company.
Used in: Winding Up of Company in India 2026 by Strike Off or Liquidation
A certificate from the home country's social security authority that a posted employee stays in the home scheme under a social security agreement. In India it makes the expat an excluded employee under paragraph 2 of the EPF Scheme, 2026, so no PF is payable while it is valid.
Used in: PF and ESI for Foreign Owned Companies and Expat Staff in 2026; Secondment of Employees to India with PE, GST and TDS Rules (2026); Social Security Agreement India 2026 and the Certificate of Coverage
The certificate a member of the Institute of Chartered Accountants of India needs under section 6 of the Chartered Accountants Act, 1949 to practise. Section 2(17) of the Companies Act, 2013 treats only a chartered accountant holding one as eligible to audit a company.
Used in: Auditor of an Indian Subsidiary and the Parent's Global Audit Firm
The document a Registration Officer grants under rule 13 of the Immigration and Foreigners Rules, 2025 once a foreigner's registration is complete. It states the authorised period of stay and any places of stay. Many people still call it the Residential Permit or RC/RP.
Used in: FRRO Registration 2026 for Foreign Employees, Steps and Deadlines
A body licensed by the Controller of Certifying Authorities to issue digital signature certificates. It verifies the applicant, issues the certificate and can revoke it, including at the subscriber's request.
Used in: DSC for Foreign Directors in India, Documents and Video KYC
An interest or lien created on the property or assets of a company, or any of its undertakings, as security, including a mortgage, under section 2(16) of the Companies Act, 2013. Chapter VI of the Act requires the company to register it with the Registrar of Companies.
Used in: CHG-1 Form for Registering a Charge on Loans to an Indian Company
A board or committee resolution passed without a meeting under section 175 of the Companies Act, 2013. The draft goes to every director with the papers, and a majority of directors entitled to vote must approve it. It is noted at the next board meeting.
Used in: Board Meeting Rules Under the Companies Act for Non Resident Directors
The central law, in force from 21 Nov 2025 under S.O. 5319(E), that replaces nine Acts including the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 and the Employees' State Insurance Act, 1948. It sets the 20 and 10 employee thresholds for PF and ESI and defines wages in section 2(88).
Used in: PF and ESI for Foreign Owned Companies and Expat Staff in 2026
Central law (Act 29 of 2019) that merged the Payment of Wages Act, 1936, Minimum Wages Act, 1948, Payment of Bonus Act, 1965 and Equal Remuneration Act, 1976. It governs the wage definition, minimum wages, pay dates, deductions, bonus and final pay. It has applied since 21 Nov 2025.
Used in: New Labour Code 2026 and What Foreign Owned Companies Must Change
The declaration under section 10A of the Companies Act, 2013 that every subscriber has paid for the shares agreed. A company with share capital must file it within 180 days of incorporation. The company pays INR 50,000, and each officer INR 1,000 a day up to INR 1,00,000, for delay.
Used in: Compliance Calendar 2026-27 for Foreign Owned Companies in India; INC-20A Commencement of Business for a Foreign Subsidiary in 2026; SPICe+ Form Guide 2026: Part A, Part B and Fees; Top Rated Online Company Registration Services in India 2026
An order issued by the Ministry of Corporate Affairs under section 143(11) of the Companies Act, 2013. It makes the auditor report on set matters such as loans, statutory dues, related party transactions and fraud. Banks, insurers, section 8 companies, one person companies, small companies and some small private companies are outside it.
Used in: Statutory Audit of a Foreign Owned Indian Subsidiary in 2026; Statutory Audit of a US Subsidiary in India, Timeline and Penalties
Companies House is the UK registrar that incorporates UK private limited companies (Ltd) and holds their public filings, such as the annual confirmation statement and accounts. It has no role in India. An Indian Private Limited company, including one owned by a UK Ltd, is registered with the Registrar of Companies under India's Ministry of Corporate Affairs.
Used in: UK Company to Indian Subsidiary: Registration Guide; UK Ltd vs India Private Limited Structure (2026)
A transfer pricing method that compares the price charged in a related party transaction with the price charged in a comparable transaction between unrelated parties. It suits interest on loans, royalties and goods with an observable market price. It is a prescribed method under rule 10B of the Income Tax Rules, 1962, carried into the 2026 Rules.
Used in: Transfer Pricing Between US Parent and Indian Subsidiary
The common Ecuadorian company forms under the Ley de Compañías (Companies Law) that can act as the parent investor in an Indian subsidiary. The Indian filing needs the parent's incorporation evidence, governing documents, investment approval and signatory authority, apostilled through the Ministry of Foreign Affairs and translated where needed.
Used in: Company Registration in India from Ecuador: Process, Cost and Timeline (2026)
Any authority empowered under the Companies Act, 2013 or its rules to approve a scheme of merger, which is the NCLT for a scheme under sections 230 to 232 and the Central Government for a fast track merger. Regulation 2(iia) of the Cross Border Merger Regulations, inserted by FEMA 389(1)/2026-RB, defines it.
Used in: Cross Border Merger in India Under Rule 25A and FEMA (2026)
An auditor who performs audit work on a component, such as an Indian subsidiary, for a group audit. The group auditor directs that work under ISA (UK) 600 (Revised) or ISA 600 (Revised). The Indian statutory audit under section 143 of the Companies Act, 2013 remains a separate engagement.
Used in: Auditor of an Indian Subsidiary and the Parent's Global Audit Firm; Statutory Audit of a UK Subsidiary in India for the UK Parent (2026)
Settling an offence under section 21, 23 or 24 of the Immigration and Foreigners Act, 2025 by paying a sum the Central Government notifies, in place of prosecution. Section 25 allows it and caps the sum at the maximum fine for the offence. The FRRO usually compounds registration and overstay cases.
Used in: Business Visa India 2026 for Foreign Founders and Board Directors; FRRO Registration 2026 for Foreign Employees, Steps and Deadlines
The table in paragraph 5.4 of RBI's Master Direction on Compounding of Contraventions under FEMA, 1999 that sets the amount for each type of contravention. Reporting delays pay a fixed INR 10,000 per regulation plus a yearly amount banded by the sum involved.
Used in: FC-GPR Compounding in 2026 and What RBI Charged for Late Filings
A settlement under section 15 of FEMA, 1999 and the Foreign Exchange (Compounding Proceedings) Rules, 2024, where RBI or the Directorate of Enforcement closes an admitted contravention for a sum of money. It avoids adjudication and the penalty of up to three times the sum involved under section 13.
Used in: Best FEMA Consultants in India (2026): How Foreign Founders Should Choose; FC-GPR Compounding in 2026 and What RBI Charged for Late Filings; FC-GPR Compounding with RBI: 2026 FEMA Guide; FC-GPR vs FC-TRS: Differences and Filing Deadlines; FDI Reporting in India: FC-GPR, FC-TRS and FLA Deadlines and 3 more
Order of the RBI compounding authority fixing the sum payable for a contravention. The sum must be paid within 15 days. The contravener has no right to withdraw the order or seek its review before the authority, and non payment makes the order void.
Used in: FEMA Compounding Application: Resolving Contraventions (2026)
The free trade agreement between India and the United Kingdom, signed on 24 Jul 2025 and in force since 15 Jul 2026. It cuts or removes customs duty on most goods traded between the two countries and covers services and business mobility. Only goods that meet its rules of origin qualify.
Used in: UK India Free Trade Agreement in Force: Business Impact (2026)
A trade agreement between India and the Republic of Korea that reduces customs duty on goods meeting its rules of origin. It is separate from the India Korea DTAA, which deals with income tax, and it does not replace the need to check the FDI route and sector conditions.
Used in: Company Registration in India from South Korea: Process, Cost and Timeline (2026)
A CCD is a debenture that must convert into equity shares within a fixed period. Rule 2(1)(c)(ix) of the Companies (Acceptance of Deposits) Rules, 2014 excludes debentures compulsorily convertible within ten years from deposits. Under FEMA, CCDs issued to a foreign investor are equity instruments reported in Form FC-GPR.
Used in: CCD vs CCPS for Foreign Investors under the FDI Rules in India (2026); DPT-3 Return of Deposits 2026 for Foreign Owned Companies in India
Preference shares that must convert into equity shares on terms set at issue. The Non Debt Instruments Rules, 2019 treat them as equity only if they are fully, compulsorily and mandatorily convertible, and the conversion price can never be lower than the fair value worked out at issue.
Used in: CCD vs CCPS for Foreign Investors under the FDI Rules in India (2026); FEMA Pricing Guidelines for Share Issue and Transfer in 2026
Option for a domestic company to pay tax at 22 percent, plus a flat 10 percent surcharge and 4 percent cess, an effective 25.168 percent, by giving up specified deductions. MAT does not apply and the option cannot be withdrawn. It sits in section 115BAA of the Income Tax Act, 1961 and section 200 of the Income Tax Act, 2025.
Used in: Advance Tax Due Dates for Companies in India Under the 2025 Act; Corporate Tax Rate in India for Foreign Companies: 35%+; ITR-6 for Foreign Owned Companies in 2026, Due Dates and Schedules; Minimum Alternate Tax in India for Foreign Companies and Subsidiaries
An India based company registered with the Data Protection Board under section 6(9) of the Digital Personal Data Protection Act, 2023 and rule 4 of the DPDP Rules 2025. It runs a platform through which people give, manage, review and withdraw consent.
Used in: DPDP Rules 2025 Compliance Timeline for Foreign Companies in India
The prior consent a State Pollution Control Board grants under the Water (Prevention and Control of Pollution) Act, 1974 and the Air (Prevention and Control of Pollution) Act, 1981 before a factory is built or expanded. What the board asks for depends on the pollution category of the process, such as red, orange or green.
Used in: Chemical Company Registration in India for Foreign Investors (2026); Manufacturing Company Registration in India for Foreign Parents (2026)
The State Pollution Control Board consent under the Water Act, 1974 and the Air Act, 1981 that a unit needs before it starts production. The board grants it after checking that the conditions of the Consent to Establish are met. It is renewed periodically, and its validity depends on the pollution category.
Used in: Chemical Company Registration in India for Foreign Investors (2026); Manufacturing Company Registration in India for Foreign Parents (2026)
The Department for Promotion of Industry and Internal Trade's consolidated statement of India's FDI rules, last issued in Oct 2020 and amended through later press notes. It sets the sector wise caps, entry routes and conditions, which take legal effect when the Ministry of Finance notifies them in the Foreign Exchange Management (Non Debt Instruments) Rules, 2019.
Under section 511(10)(d) of the Income Tax Act, 2025, any separate entity of an international group included in its consolidated financial statements. It also covers an entity that would be included if any group entity's equity were listed. So an Indian subsidiary of a foreign company qualifies even if the group prepares no consolidated accounts.
Used in: Master File and CbCR Requirements in India (2026), Forms 56 to 60
The certification chain used when the apostille route is not available between the issuing country and India: notarisation or local certification, authentication by that country's authorities, then attestation by an Indian embassy or consulate. Under the Companies (Incorporation) Rules, 2014, a foreign subscriber in a country outside both the Commonwealth and the Hague Convention follows this route.
Used in: Apostille or Notarisation for Company Registration in India; Branch Office vs Subsidiary in India for a UAE Company (2026); Choosing an India Registration Service for Foreign Founders; Company Registration in India from Cambodia: Process, Cost and Timeline (2026); Company Registration in India from China: Process, Cost and Timeline (2026) and 27 more
The service length that counts for gratuity under the Code on Social Security, 2020. A completed year of service means continuous service for twelve months under section 2(17), and section 54 deals with what counts as continuous service.
Used in: Gratuity Rules 2026 for Fixed Term Employees and the One Year Rule
Contract labour means workers engaged through a contractor, as defined in section 2(1)(m) of the Occupational Safety, Health and Working Conditions Code, 2020. Workers regularly employed by the contractor with increments and social security are carved out. Chapter XI applies at 50 or more contract workers, and a contractor then needs a licence under section 47.
Used in: Employer of Record vs Subsidiary in India for Foreign Companies (2026)
An employment relationship under which, by section 17(c) of the Copyright Act, 1957, the employer is the first owner of copyright in work the employee makes in the course of employment, unless an agreement says otherwise. A contract for services with a freelancer does not have this effect.
Used in: Copyright Registration in India and Designs for Foreign Companies
Under section 2(27) of the Companies Act, 2013, control includes the right to appoint a majority of the directors or to control management or policy decisions. The right may come from shareholding, management rights, shareholders agreements, voting agreements or any other manner, acting alone or in concert.
Used in: Significant Beneficial Owner Case on LinkedIn India and Group CEOs
The office appointed under section 17 of the IT Act, 2000 that licenses certifying authorities in India. It publishes the identity verification guidelines that every issuer of digital signature certificates follows.
Used in: DSC for Foreign Directors in India, Documents and Video KYC
An Indian patent application that claims priority from a first application in a convention country, under sections 133 to 135 of the Patents Act, 1970. It must be filed within twelve months of the first application, and the claims take that earlier priority date.
Used in: Patent Filing in India for Foreign Companies, PCT and Form 27
An instrument issued by a startup company that records money received as debt, repayable or convertible into equity shares within ten years. Rule 18 of the FEMA Non Debt Instruments Rules, 2019 lets a non resident buy one for INR 25 lakh or more in a single tranche, reported in Form CN within 30 days.
Used in: CCD vs CCPS for Foreign Investors under the FDI Rules in India (2026); DPIIT Recognition for a Foreign Owned Startup in India (2026)
A guarantee one company gives a bank or financial institution for a loan to a related company. Where the related recipient is located in India, rule 28(2) of the CGST Rules values it at 1 percent a year of the amount guaranteed, or the actual fee if higher.
Used in: GST on Related Party Transactions and Cross Charges in India (2026)
The 21 character alphanumeric number the Registrar of Companies assigns to every company under the Companies Act, 2013. It encodes listing status, industry, state, year of incorporation, company type and a serial number, appears on the Certificate of Incorporation, and must be printed on company letterheads, invoices and notices.
Activities a company undertakes under section 135 of the Companies Act, 2013 and its CSR Policy, in the areas listed in Schedule VII. Rule 2(1)(d) of the CSR Rules excludes normal business, activities outside India, benefits to employees, political contributions, marketing sponsorship and statutory obligations.
Used in: CSR Applicability for Foreign Owned Companies in India (2026)
Directive (EU) 2022/2464, the EU law that requires in scope companies to publish a sustainability statement under the European Sustainability Reporting Standards. Directive (EU) 2026/470 narrowed it to undertakings above 1,000 employees and EUR 450 million turnover. An Indian subsidiary is affected when its EU parent or an EU customer reports data covering it.
Used in: BRSR Reporting in India and Foreign Owned Subsidiaries (2026)
A revised TDS statement filed on TRACES to fix errors in a statement already processed, such as a wrong PAN, challan or amount. Section 397(3)(f) of the Income Tax Act, 2025 limits it to two years from the end of the tax year in which the statement was due.
Used in: Form 27Q and Form 144 for TDS on Payments to Non Residents (2026)
A transfer pricing method that adds an arm's length gross mark up to the direct and indirect costs of producing goods or services for a related party, and compares that mark up with what independent companies earn in similar transactions. It is a prescribed method under rule 10B of the Income Tax Rules, 1962, carried into the 2026 Rules.
Used in: Transfer Pricing Between UK Parent and Indian Subsidiary; Transfer Pricing Between US Parent and Indian Subsidiary
A term used in Indian offer letters for the total yearly cost of an employee, often including employer PF, gratuity accrual and insurance. It has no statutory meaning. The labour codes test wages, not CTC, so a CTC figure must be broken into heads under section 2(y).
Used in: New Labour Code Salary Structure and the 50 Percent Wage Rule in 2026
An annual report of a large international group's revenue, profit, tax and activities by country, filed in Form 59 (old Form 3CEAD) by the parent or alternate reporting entity. Section 511 of the Income Tax Act, 2025 holds it. It applies above INR 6,400 crore of consolidated group revenue and is due within 12 months of the reporting year end.
Used in: Master File and CbCR Requirements in India (2026), Forms 56 to 60; Transfer Pricing Documentation Requirements in India
A committee of the board that a company covered by section 135(1) of the Companies Act, 2013 forms to recommend its CSR Policy and spending and to monitor them. It needs three directors, or two where no independent director is required. Section 135(9) waives it where the obligation is INR 50 lakh or less.
Used in: CSR Applicability for Foreign Owned Companies in India (2026)
A rule in a trade agreement that lets inputs originating in one partner count as originating when used in another partner's product. India's FTAs mostly allow bilateral cumulation, or cumulation among all parties where the partner is a bloc such as EFTA.
Used in: Rules of Origin in India 2026: CAROTAR 2020 Guide for FTA Importers
D
The requirement in the proviso to rule 3(5) of the Companies (Accounts) Rules, 2014 that a company keeping books in electronic mode, even at a place outside India, keeps a backup of them on servers physically located in India, taken every day.
Used in: Audit Trail under the Companies Act and the Edit Log Rule in 2026
Services a data centre provides through its physical infrastructure in India, including land, buildings, power equipment, cooling, security, servers, storage, operating systems, network, software platforms and staff. Note 3(b) to Schedule IV of the Income Tax Act, 2025 defines the term.
Used in: Data Centre India Tax Holiday 2026: Incentives, Rules and Approvals
A person who, alone or with others, decides the purpose and means of processing personal data, under section 2(i) of the Digital Personal Data Protection Act, 2023. The fiduciary carries the duties in section 8, including for processing done by its data processors.
Used in: DPDP Rules 2025 Compliance Timeline for Foreign Companies in India
The individual to whom personal data relates, under section 2(j) of the Digital Personal Data Protection Act, 2023. For a child, it includes the parent or lawful guardian. Data Principals hold the rights to access, correction, erasure, grievance redress and nomination.
Used in: DPDP Rules 2025 Compliance Timeline for Foreign Companies in India
Any person who processes personal data on behalf of a Data Fiduciary, under section 2(k) of the Digital Personal Data Protection Act, 2023. A fiduciary may engage a processor only under a valid contract, and stays responsible for the processor's work.
Used in: DPDP Rules 2025 Compliance Timeline for Foreign Companies in India
The adjudicating body established under section 18 of the Digital Personal Data Protection Act, 2023, with its head office in the National Capital Region. It inquires into breaches, directs remedies and imposes penalties. Appeals lie to the Telecom Disputes Settlement and Appellate Tribunal.
Used in: DPDP Rules 2025 Compliance Timeline for Foreign Companies in India
The beginning of the earliest period for which a company presents full comparative information in its first Ind AS financial statements, under Ind AS 101. The company prepares an opening Ind AS balance sheet at this date and books the adjustments in retained earnings.
Used in: Ind AS Applicability for a Foreign Owned Private Company in 2026
The merger control test added to section 5 of the Competition Act, 2002, in force since September 2024. A deal worth more than INR 2,000 crore needs Competition Commission approval if the target has substantial business operations in India, even if the small target exemption would apply.
Used in: Joint Venture Company in India with a Foreign Partner (2026)
A declaration of solvency is the affidavit a majority of directors swear under section 59(3)(a) of the Insolvency and Bankruptcy Code, 2016 before a voluntary liquidation. It states that the company will pay its debts in full from its assets and is not being liquidated to defraud anyone. Audited accounts and a registered valuer's report go with it.
Used in: Winding Up of Company in India 2026 by Strike Off or Liquidation
An affidavit filed with the Registrar of Companies before a buyback under section 68(6) of the Companies Act, 2013. At least two directors, including the managing director if any, declare that the company can meet its liabilities and will not become insolvent within one year.
Used in: Buyback of Shares by an Indian Subsidiary from a Foreign Parent (2026)
A payment treated as a dividend for tax even though the company never declared one. Section 2(40)(e) of the Income Tax Act, 2025 (old section 2(22)(e)) covers loans, advances and payments by a closely held company to a 10 percent shareholder, its related concern or for its benefit, up to accumulated profits.
Used in: Dividend Declaration by an Indian Subsidiary to Its Foreign Parent
The approval that regulation 9 of the Foreign Exchange Management (Cross Border Merger) Regulations, 2018 treats as given for any transaction done under those regulations. The managing director or whole time director, and the company secretary if there is one, certify compliance in the application to the Competent Authority.
Used in: Cross Border Merger in India Under Rule 25A and FEMA (2026)
An Indian citizen treated as resident under section 6(7) of the Income Tax Act, 2025 because they are not liable to tax in any other country by reason of domicile or residence, and their total income other than income from foreign sources exceeds INR 15,00,000.
Used in: Tax Residency India 2026 for Foreign Employees and the 182 Day Rule
A sub category of startup created by G.S.R. 108(E) of 4 Feb 2026. It must work on new scientific or engineering knowledge, spend heavily on R&D and own or create significant novel IP. It stays a startup for 20 years with turnover up to INR 300 crore.
Used in: DPIIT Recognition for a Foreign Owned Startup in India (2026)
The part of a share price that the buyer pays after the transfer. Under rule 9(6) of the Foreign Exchange Management (Non Debt Instruments) Rules, 2019, up to 25 percent of the total price in a resident to non resident transfer can be deferred for up to 18 months from the transfer agreement.
Used in: Deferred Consideration under FEMA in FDI Share Transfers (2026)
A facility under the proviso to section 47(1) of the Customs Act, 1962 and the Deferred Payment of Import Duty Rules, 2016 that lets eligible importers clear goods before paying duty. It covers AEO T2 and T3 importers and, until 31 Mar 2028, Eligible Manufacturer Importers.
Used in: Authorised Economic Operator in India 2026: AEO Tiers and Benefits
A notice under rule 90(3) of the CGST Rules, 2017, issued within 15 days of filing, saying a refund application is incomplete. The applicant must file a fresh application after fixing the gaps, and the debited credit returns to the ledger.
Used in: GST Refund for Exporters of Services Under LUT with RFD-01 (2026)
Sections 15 and 16 of the Micro, Small and Medium Enterprises Development Act, 2006 require a buyer to pay a micro or small supplier within the agreed period, at most 45 days. Late payment carries compound interest at three times the RBI bank rate. Medium enterprises are not covered.
Used in: Udyam Registration for Foreign-Owned Companies in India (2026 Guide)
A list kept by DGFT under paragraph 2.14 of the Foreign Trade Policy 2023 and rule 7 of the Foreign Trade (Regulation) Rules, 1993. A Regional Authority places a firm on it with written reasons. A listed firm can be refused new or renewed licences, authorisations and scrips until it is removed.
Used in: IEC Registration for a Foreign Owned Company in India (2026 Guide)
A permanent establishment created when a person in India who is not independent habitually negotiates or concludes contracts for the foreign company. Most Indian tax treaties deal with it in Article 5. Job title does not matter. What the person actually does, and whether they can bind the foreign company, decides it.
Used in: How to Avoid Permanent Establishment Risk in India; Significant Economic Presence and Business Connection in India 2026
A visa for the spouse and dependent children of an employment visa holder, valid as long as the principal's visa under paragraph 33 of Annex III. It does not allow employment, so a spouse who wants to work needs an employment visa sponsored by their own employer.
Used in: Employment Visa India 2026 for Foreign Employees and Directors
Section 2(31) of the Companies Act, 2013 defines a deposit as any receipt of money by way of deposit or loan or in any other form, other than the receipts that rule 2(1)(c) of the Companies (Acceptance of Deposits) Rules, 2014 excludes. Section 73 limits who may accept one, and a private company cannot take a deposit from an outsider.
Used in: DPT-3 Return of Deposits 2026 for Foreign Owned Companies in India
The one Authorised Dealer Category I bank that a foreign company names for all dealings of its branch, liaison or project office in India. It approves the office, receives the annual certificates and allows closure and the final remittance.
Used in: Converting a Branch or Liaison Office into an Indian Subsidiary
A depository participant that SEBI has authorised to receive FPI applications and grant registration on its behalf under regulations 3 and 7(1) of the SEBI (Foreign Portfolio Investors) Regulations, 2019. A foreign investor registers as an FPI through a DDP, which also issues the Category I or Category II certificate.
Used in: FDI vs FPI in India, the 10 Percent Line and Reclassification in 2026
A partner named under section 7 of the Limited Liability Partnership Act, 2008 who is responsible for the LLP's legal compliance. Every LLP needs at least two designated partners who are individuals, and at least one of them must be resident in India.
Used in: FDI in LLP in India 2026, Rules for Foreign Partners and Reporting
The designated person is the officer an Indian company names under rule 9(4) of the Companies (Management and Administration) Rules, 2014 to give the Registrar information on beneficial interest in its shares. MGT-7 names the person, and Form GNL-2 reports a change. Without a designation, the company secretary is deemed designated, failing whom the managing director, then every director.
Used in: BEN-2 and Significant Beneficial Owners with a Foreign Parent (2026)
An employee whom the employer posts temporarily from one agreement country to the other while keeping them on the home payroll. India's social security agreements let a detached worker pay only into the home scheme for a fixed period, set in each agreement's article on posted or detached workers.
Used in: Social Security Agreement India 2026 and the Certificate of Coverage
The central government officer in charge of one or more SEZs under the Special Economic Zones Act, 2005. The DC chairs the Approval Committee, issues the Letter of Approval, accepts the unit's bond, monitors net foreign exchange and approves exit under rule 74 of the SEZ Rules, 2006.
Used in: SEZ in India 2026: Setting Up an SEZ Unit as a Foreign Company
An electronic signature credential issued by a certifying authority licensed under the Information Technology Act, 2000, used to sign filings on the MCA and income tax portals. Every director who signs an MCA form needs a valid DSC. A foreign national living abroad usually obtains one with apostilled documents and a video verification.
Used in: Branch Office vs Subsidiary in India for a UAE Company (2026); Choosing an India Registration Service for Foreign Founders; Company Registration in India for British Citizens; Company Registration in India for US Citizens (2026); Company Registration in India from Azerbaijan: Process, Cost and Timeline (2026) and 38 more
A facility that lets an importer take containers straight from the port terminal to its premises, without moving them through a container freight station. AEO T1, T2 and T3 holders can use it, after permission from the Chief Commissioner and registration with the port authority.
Used in: Authorised Economic Operator in India 2026: AEO Tiers and Benefits
Section 164(2) of the Companies Act, 2013 disqualifies a director of a company that has not filed financial statements or annual returns for three consecutive financial years. The disqualification runs for five years from the date of default and bars appointment as a director in any company.
A DIN is the unique number the Ministry of Corporate Affairs allots to an individual who will act as a director of an Indian company, under sections 152 to 154 of the Companies Act, 2013. A first time director usually gets it through SPICe+ at incorporation. A foreign director applies with a passport and authenticated proof of address.
Used in: Company Registration in India from Brunei: Process, Cost and Timeline (2026); Company Registration in India from Canada: Process and Compliance (2026); Company Registration in India from Chile (2026); Company Registration in India from Finland: Process, Cost and Timeline (2026); Company Registration in India from France: Process, Cost and Timeline (2026) and 17 more
The office under the Ministry of Commerce and Industry that frames and runs the Foreign Trade Policy. It issues IECs, export authorisations and status holder certificates through its Regional Authorities and its online portal at dgft.gov.in.
Used in: IEC Registration for a Foreign Owned Company in India (2026 Guide)
The agency under the Department of Revenue that investigates FEMA contraventions. It compounds contraventions of section 3(a) of FEMA, and the RBI compounds the rest. Compounding is not available for serious offences involving money laundering, terror financing or intent to defraud.
Used in: FEMA Compounding Application: Resolving Contraventions (2026)
Under section 25(4) and (5) of the CGST Act, each GST registration of the same legal entity is a distinct person. Under Explanation 1 to section 8 of the IGST Act, an establishment in India and one outside India are also distinct persons.
Used in: GST on Related Party Transactions and Cross Charges in India (2026)
The officer the appropriate government notifies for each district under section 5 of the POSH Act, 2013, usually a District Magistrate, Collector or Deputy Collector. The District Officer constitutes the Local Committee and receives annual reports from Internal Committees.
Used in: POSH Compliance Checklist for Foreign Owned Companies in India
All of India outside the SEZs, under the Special Economic Zones Act, 2005. Goods an SEZ unit clears into the DTA pay customs duty as if imported under section 30 of that Act. Supplies from the DTA into an SEZ for authorised operations are zero rated under GST.
Used in: SEZ in India 2026: Setting Up an SEZ Unit as a Foreign Company
The share of a product's value that is added in India, measured under the method in the relevant scheme guidelines. Some PLI schemes, such as the PLI for automobiles and auto components, require a minimum DVA, set at 50 percent for advanced automotive technology products.
Used in: PLI Scheme 2026: Manufacturing Incentives in India for Foreign Firms
A dormant company is an inactive company the Registrar records as dormant under section 455 of the Companies Act, 2013 on an application in Form MSC-1. A company qualifies if it had no business or significant accounting transaction for two financial years. It files a yearly return in Form MSC-3 and keeps its minimum directors.
Used in: Dormant Company Audit in India for Foreign Owned Subsidiaries (2026); Winding Up of Company in India 2026 by Strike Off or Liquidation
The India UK social security agreement that took effect with CETA on 15 Jul 2026. It exempts workers on a temporary posting, and their employers, from paying social security contributions in both countries, so contributions are paid only in the home country.
Used in: UK India Free Trade Agreement in Force: Business Impact (2026)
A treaty between India and another country that divides taxing rights over cross border income and caps Indian withholding tax. Section 159 of the Income Tax Act, 2025 (old section 90) gives treaties effect. Where India has no comprehensive DTAA with a country, domestic withholding rates under the Income Tax Act, 2025 apply and no treaty documents are needed.
Used in: Buyback of Shares by an Indian Subsidiary from a Foreign Parent (2026); Company Registration in India for US Citizens (2026); Company Registration in India from Belgium: Process, Cost and Timeline (2026); Company Registration in India from Botswana: Process, Cost and Timeline (2026); Company Registration in India from Brunei: Process, Cost and Timeline (2026) and 44 more
Investment by an Indian company that is owned or controlled by persons resident outside India into another Indian entity. The Foreign Exchange Management (Non Debt Instruments) Rules, 2019 treat it as indirect foreign investment. The receiving entity must meet the sector's entry route, cap and conditions, and the investing company reports it in Form DI within 30 days.
Used in: Downstream Investment Rules for FOCCs and Form DI in 2026 (FEMA); FDI Automatic Route Sectors in India (2026); Holding and Subsidiary Company in India Under Section 2(87)
A company recognised as a startup by the Department for Promotion of Industry and Internal Trade. Under the old angel tax regime, a recognised startup meeting the INR 25 crore and asset conditions could file Form 2 and escape section 56(2)(viib).
Used in: Angel Tax Abolished in India and What Foreign Investors Still Face
Recognition of an entity as a startup by the Department for Promotion of Industry and Internal Trade under G.S.R. 108(E) of 4 Feb 2026. It is free, applied for on the National Single Window System, and is the gateway to Startup India benefits such as self certification, IP fee concessions and the section 140 tax holiday.
Used in: DPIIT Recognition for a Foreign Owned Startup in India (2026)
The Slovenian limited liability company, governed by the Companies Act (ZGD-1) and the common form of Slovenian parent investor. The Indian filing needs its registration evidence, governing documents, investment approval and signatory authority, certified and translated as the bank and filing professional require.
Used in: Company Registration in India from Slovenia: Process, Cost and Timeline (2026)
The Dutch private limited company, often the parent or intermediate holding company for a Dutch group's Indian subsidiary. As a corporate subscriber in SPICe+, the BV provides its registration record, governing documents and a board resolution approving the investment and signatories, all apostilled. Thin substance at the BV can undermine treaty benefits.
Used in: Company Registration in India from the Netherlands: Process, Cost and Timeline (2026)
E
An electronic travel authorisation applied for on indianvisaonline.gov.in, valid 365 days from the grant with multiple entries and stays of up to 180 days. It does not allow employment and cannot be extended or converted. A regular business visa comes from an Indian mission instead.
Used in: Business Visa India 2026 for Foreign Founders and Board Directors
Under section 164(ca) of the Finance Act, 2016, a non resident who owns, operates or manages a digital or electronic facility or platform for online sale of goods, online provision of services, or both. The 2 percent equalisation levy applied to these operators.
Used in: Equalisation Levy in India, Its Abolition and What Now Applies
The Bureau of Immigration's online system at indianfrro.gov.in for registration, visa extension, visa conversion, exit permits and other services. Rule 12(1)(b) of the Immigration and Foreigners Rules, 2025 requires the Form I registration application on the designated online portal. The Bureau of Immigration sends documents by email or post.
Used in: FRRO Registration 2026 for Foreign Employees, Steps and Deadlines
E invoicing is the system under rule 48(4) of the CGST Rules, 2017 where a registered person above the notified turnover threshold reports each business to business invoice to the Invoice Registration Portal. The portal returns an Invoice Reference Number and QR code, and under rule 48(5) an invoice without them is not treated as a valid invoice.
Used in: 57th GST Council Meeting Recommendations Explained (8 October 2026)
The web forms in which a company files its memorandum and articles with SPICe+ (Form INC-32). Subscribers and witnesses sign them digitally. Some cases, such as a body corporate subscriber based outside India, attach signed copies instead.
Used in: Memorandum of Association and Articles for a Foreign Owned Subsidiary
A part of the price that depends on the company's later performance. FEMA has no separate earn out rule. In a transfer between a resident and a non resident, the earn out must fit within the 25 percent and 18 month limits of rule 9(6) of the NDI Rules, and the final price must meet the pricing guidelines.
Used in: Deferred Consideration under FEMA in FDI Share Transfers (2026)
Earnings before interest, taxes, depreciation and amortisation. Section 177 of the Income Tax Act, 2025 uses 30 percent of the borrower's EBITDA as the interest cap but does not define the term or say how to compute it.
Used in: Thin Capitalisation in India and the 30 Percent EBITDA Interest Cap
The company that in substance bears the cost of an employee's work, directs it and carries the risk of its results, even if another company holds the contract. The OECD Commentary on Article 15 uses the idea; Indian courts weigh similar factors under a substance over form test.
Used in: Secondment of Employees to India with PE, GST and TDS Rules (2026)
A certificate on the DGFT portal that links a specific inward remittance to a specific export invoice or shipping bill. Since DGFT Trade Notice 33/2023-24, exporters self certify it by mapping the bank's Inward Remittance Message to the invoice. It needs a linked IEC, follows Appendix 2U of the Handbook of Procedures, 2023 and can be cancelled within 120 days.
Used in: EDF Form Guide: Export Declaration Form in India; FIRC and eBRC for Export of Services from India in 2026; GST on Export of Services from India: Zero-Rated Rules & LUT; IEC Registration for a Foreign Owned Company in India (2026 Guide)
The GST portal ledger that holds tax paid in cash through a challan. Because section 2(82) of the CGST Act excludes reverse charge tax from output tax, and section 49(4) allows credit only against output tax, reverse charge must be paid from this ledger.
Used in: Reverse Charge on Import of Services from a Foreign Parent (2026)
The monthly return and payment challan that an employer uploads on the EPFO portal for PF. Paragraphs 24 and 28 of the EPF Scheme, 2026 make it due within 15 days after the month ends. International workers are flagged in it, and late payment attracts damages under paragraph 23.
Used in: PF and ESI for Foreign Owned Companies and Expat Staff in 2026
The electronic credit ledger is the account on the GST portal that holds a registered person's input tax credit under each head: integrated, central, state or union territory tax and cess. Section 49 of the CGST Act, 2017 governs it, and the credit in it can pay output tax only, not interest, penalty or fees.
The investment in plant, machinery, buildings and other items that a state industrial policy counts when it sizes capital subsidies and caps. Uttar Pradesh's 2022 policy uses ECI to set capital subsidy, SGST reimbursement ceilings and the overall cap on its PLI top up.
Used in: PLI Scheme 2026: Manufacturing Incentives in India for Foreign Firms
A class of importer created by Notification 12/2026-Customs (N.T.) that can defer customs duty without AEO status until 31 Mar 2028. CBIC Circular 08/2026-Customs sets the tests, including manufacturer status under GST, 25 customs documents a year and turnover above INR 5 crore.
Used in: Authorised Economic Operator in India 2026: AEO Tiers and Benefits
A company or LLP incorporated on or after 1 Apr 2016 and before 1 Apr 2030, with turnover up to INR 100 crore in the claim year and an IMB certificate. Section 140 of the Income Tax Act, 2025, the successor to section 80-IAC, gives it a 100 percent profit deduction for three consecutive years out of ten.
Used in: DPIIT Recognition for a Foreign Owned Startup in India (2026)
A plan that gives employees the right to buy shares at a fixed price. For Indian employees holding options over foreign parent shares, the discount at exercise is taxed as a perquisite under the Income Tax Act, 2025, and a later sale is taxed as capital gains.
Used in: India Subsidiary for YC Startups: Batch to Bangalore Without Slowing Down; Sweat Equity Shares in India for Private and Foreign Owned Companies
The EPFO life cover that pays at least INR 50,000 on a member's death in service, and INR 2,50,000 to INR 7,00,000 after 12 months of continuous employment, under paragraph 21 of the EDLI Scheme, 2026. The employer contributes at a rate the Centre notifies, 0.5 percent under the 1976 scheme.
Used in: PF and ESI for Foreign Owned Companies and Expat Staff in 2026
An employer of record is an Indian company that becomes the legal employer of people who work for a foreign company. It signs the contracts, pays salary, deducts tax under section 392 of the Income Tax Act, 2025 and runs PF and ESI. No Indian statute defines or licenses the term, and the client still directs the work.
Used in: Employer of Record vs Subsidiary in India for Foreign Companies (2026); India Subsidiary for YC Startups: Batch to Bangalore Without Slowing Down
A visa for a skilled foreign professional hired by an organisation registered in India, with terms set in the Ministry of Home Affairs' Annex III on visas granted by India. The gross salary must exceed INR 16.25 lakh a year, subject to a short list of exemptions. Tourist, e Visa and business visas do not allow employment.
Used in: Business Visa India 2026 for Foreign Founders and Board Directors; Employment Visa India 2026 for Foreign Employees and Directors
A clause in the articles that can be changed only by a procedure stricter than a special resolution, under section 5(3) of the Companies Act, 2013. A private company adopts one on formation or with the agreement of all members, and notifies the Registrar.
Used in: Joint Venture Company in India with a Foreign Partner (2026); Memorandum of Association and Articles for a Foreign Owned Subsidiary
Prior approval for projects listed in the EIA Notification, 2006 under the Environment (Protection) Act, 1986, granted by a central or state authority by project category. Where it applies, it comes before the Consent to Establish and before construction.
Used in: Chemical Company Registration in India for Foreign Investors (2026)
A levy in Chapter VIII of the Finance Act, 2016 on consideration paid to non residents for online advertising (6 percent) and, from 1 Apr 2020, on e commerce supply or services (2 percent). Section 163(3) now confines the 6 percent levy to consideration before 1 Apr 2025 and the 2 percent levy to consideration before 1 Aug 2024.
Used in: Equalisation Levy in India, Its Abolition and What Now Applies; Significant Economic Presence and Business Connection in India 2026
The instruments a person resident outside India can hold as FDI under rule 2(k) of the Foreign Exchange Management (Non Debt Instruments) Rules, 2019. They are equity shares, fully and mandatorily convertible debentures and preference shares, and share warrants, with partly paid shares and warrants subject to set payment periods.
Used in: CCD vs CCPS for Foreign Investors under the FDI Rules in India (2026); FC-GPR vs FC-TRS: Differences and Filing Deadlines
An INR account with an Authorised Dealer bank acting as escrow agent, opened by a resident or non resident acquirer under regulation 5(5) and Schedule 5 of the FEMA Deposit Regulations, 2016. It is non interest bearing, carries no loans against its balance, and follows the NDI Rules.
Used in: Deferred Consideration under FEMA in FDI Share Transfers (2026)
Under section 2(1)(v) of the OSH Code, 2020, a place where any industry, trade, business, manufacture or occupation is carried on with ten or more workers, with separate rules for mines, dock work and notified hazardous activities. The Code's registration, hours and leave provisions apply to establishments, so the count of workers usually decides coverage.
Used in: Working Hours Under the Labour Code with Overtime and Leave in 2026
A certificate of origin issued by the customs authority of an EFTA state for goods that meet TEPA origin rules. Exporters who are not approved exporters use it. Indian importers rely on it, within its 12 month validity, to claim the preferential duty at customs.
Used in: India EFTA TEPA 2026: What Swiss and Norwegian Investors Should Know
The trade bloc of Iceland, Liechtenstein, Norway and Switzerland. It negotiates trade agreements jointly but is not a customs union, so each state has its own tariff schedule, except Switzerland and Liechtenstein, which share a customs territory and give joint concessions.
Used in: India EFTA TEPA 2026: What Swiss and Norwegian Investors Should Know
The Registrar's statement of objections after examining an application under section 18 of the Trade Marks Act, 1999, usually on the absolute grounds in section 9 or the relative grounds in section 11. The applicant replies in writing and may be heard before the mark is accepted or refused.
Under section 177(4) of the Income Tax Act, 2025, the lower of two figures for a tax year. One is total interest above 30 percent of EBITDA. The other is interest paid or payable to associated enterprises. Excess interest is not deductible that year.
Used in: Thin Capitalisation in India and the 30 Percent EBITDA Interest Cap
An EEFC account is a non interest bearing foreign currency current account that a person resident in India holds with an AD Category I bank. Schedule I to FEMA 10(R)/2015-RB lets it receive 100 percent of eligible foreign exchange earnings, but not FDI or foreign currency loans. Unused monthly credits are converted into rupees by the next month end.
Used in: Bank Account for a Foreign Subsidiary in India, KYC and Timeline 2026; EEFC Account for Foreign Owned Companies and Exporters in India (2026)
A person outside compulsory PF membership under paragraph 2 of the Employees' Provident Funds Scheme, 2026. It includes an international worker who pays into the home scheme and either holds detached worker status under a social security agreement, for the period it allows, or is exempt under an economic agreement with a social security chapter concluded before 1 Oct 2008.
Used in: Social Security Agreement India 2026 and the Certificate of Coverage
A request under rule 34 of the Trade Marks Rules, 2017, made on Form TM-M with a higher fee, for the Trade Marks Registry to examine an application ahead of the normal queue. It speeds up examination and later processing, but advertisement and the four month opposition window still apply.
Used in: Top Trademark Registration Services in India (2026)
Faster examination of a patent application requested in Form 18A under rule 24C of the Patents Rules, 2003. A startup can use it, and rule 2(fb) lets a foreign entity count as a startup by declaring that it meets the Startup India turnover and age criteria.
Used in: DPIIT Recognition for a Foreign Owned Startup in India (2026)
EDPMS is the Reserve Bank of India system in which AD banks record exports and the inward remittances that settle them. An export entry stays outstanding until the bank marks it realised. From 1 Oct 2026, FEMA 23(R)/2026-RB sets the realisation period at nine months, or twelve months where the export is invoiced or settled in rupees.
Used in: EDF Form Guide: Export Declaration Form in India; EEFC Account for Foreign Owned Companies and Exporters in India (2026); Export Realisation Period Under FEMA for Goods and Services (2026); FIRC and eBRC for Export of Services from India in 2026; IEC Registration for a Foreign Owned Company in India (2026 Guide) and 2 more
The declaration an exporter files through its Authorised Dealer bank under the FEMA export regulations, FEMA 23(R)/2026-RB, from 1 Oct 2026. For services, including a true up invoice to a foreign parent, it is due within 30 days from the end of the invoice month. Non software exporters may file by the payment date. It replaced SOFTEX.
Used in: Compliance Calendar 2026-27 for Foreign Owned Companies in India; EDF Form Guide: Export Declaration Form in India; EEFC Account for Foreign Owned Companies and Exporters in India (2026); Export Realisation Period Under FEMA for Goods and Services (2026); FIRC and eBRC for Export of Services from India in 2026 and 9 more
Export of services is a supply that meets all five conditions of section 2(6) of the IGST Act, 2017: supplier in India, recipient outside India, place of supply outside India, payment in convertible foreign exchange or permitted rupees, and parties that are not merely establishments of a distinct person. It is zero rated under section 16.
Used in: 57th GST Council Meeting Recommendations Explained (8 October 2026); GST on Export of Services from India: Zero-Rated Rules & LUT
The time within which an Indian exporter must receive and bring into India the full export value. Under regulation 5 of the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, it is nine months from shipment or invoice, twelve for rupee invoices, unless the AD bank extends it.
Used in: Export Realisation Period Under FEMA for Goods and Services (2026); Set Off Export Receivables Against Import Payables Under FEMA (2026)
A list RBI kept under the 2015 Export Regulations of exporters who failed to realise proceeds and were not making sincere efforts. Caution listed exporters could ship only against advance payment or an irrevocable letter of credit. Under regulation 13 of the 2026 Regulations, exporters on the list on 30 Sep 2026 stay under it until removed.
Used in: Export Realisation Period Under FEMA for Goods and Services (2026)
A machine readable format in which each figure and disclosure in a financial statement carries a tag from a published taxonomy. Indian companies covered by the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules, 2015 file their financial statements with the Registrar in this format.
Used in: XBRL Filing in India and Which Companies Must File AOC-4 XBRL (2026)
An ECB is a borrowing by an eligible Indian borrower from a recognised lender resident outside India, governed by the Foreign Exchange Management (Borrowing and Lending) Regulations as amended in 2026. A foreign parent can be a recognised lender. The loan needs a Loan Registration Number before drawdown and monthly reporting in Form ECB 2.
Used in: Conversion of Loan into Equity in an Indian Subsidiary (2026); DPT-3 Return of Deposits 2026 for Foreign Owned Companies in India; External Commercial Borrowing from a Foreign Parent in India (2026); How Much Authorised Capital a Foreign Subsidiary Needs: Our View; Thin Capitalisation in India and the 30 Percent EBITDA Interest Cap
The IC member from a non governmental organisation or association committed to the cause of women, or a person familiar with sexual harassment issues, under section 4(2)(c) of the POSH Act, 2013. The 2013 Rules describe such a person and the employer pays the member's fees.
Used in: POSH Compliance Checklist for Foreign Owned Companies in India
F
The licence or registration a manufacturing unit obtains from the state factories directorate under the Occupational Safety, Health and Working Conditions Code, 2020, in force since 21 Nov 2025, and the state rules. The Code treats premises with 20 or more workers using power, or 40 or more without power, as a factory.
Used in: Manufacturing Company Registration in India for Foreign Parents (2026)
The value set by rule 57 of the Income Tax Rules, 2026 using an adjusted net asset formula. It replaces rule 11UA. It tests whether a buyer has income under section 92(2)(m) and, on the usual reading, sets the seller's deemed consideration under section 79.
Used in: Angel Tax Abolished in India and What Foreign Investors Still Face; Tax on Sale of Unlisted Shares by Non Residents in India (2026)
A merger approved by the Central Government through the Regional Director instead of the NCLT. Section 233 of the Companies Act, 2013 needs approval by members holding 90 percent of the shares and creditors holding nine tenths in value, plus a declaration of solvency. Rule 25A(5) opens it to a foreign holding company and its wholly owned Indian subsidiary.
Used in: Cross Border Merger in India Under Rule 25A and FEMA (2026); Reverse Flip to India for US and Singapore Holding Companies (2026)
The sector specific conditions in Schedule I of the NDI Rules for companies that receive foreign investment, such as minimum capitalisation or sourcing rules. Rule 2 of the NDI Rules defines the term. Paragraph 3.2.4 of the FDI Policy closes a sector carrying such conditions to FDI in an LLP.
Used in: FDI in LLP in India 2026, Rules for Foreign Partners and Reporting
The fixed fee under section 428(c) of the Income Tax Act, 2025 for not furnishing the tax audit report on time, applying from tax year 2026-27. It is INR 75,000 for a delay of up to one month and INR 1,50,000 after that. It arises automatically, so reasonable cause does not reduce it.
Used in: Tax Audit Limit 2026 and Form 26 under Section 63 for Companies
A category in Article 12(4) of the India US DTAA covering technical or consultancy fees that are ancillary to a royalty, make technical knowledge or skill available, or transfer a technical plan or design. India taxes FIS at up to 15 percent. Other service fees are business profits under Article 7.
Used in: India Canada DTAA for Companies in 2026 with Rates, FIS and PE Rules; India US DTAA for Companies in 2026 with Rates, FIS, LOB and PE
Fees for technical services are payments for managerial, technical or consultancy services, such as group management, IT support and engineering fees. Section 9 of the Income Tax Act, 2025 treats them as income arising in India, and section 207 taxes a foreign company at 20 percent before surcharge and cess, unless a tax treaty caps or narrows the charge.
Used in: India Germany DTAA for Companies in 2026 with Rates and PE Rules; India Japan DTAA for Companies with Dividend, Interest and FTS Rates; India Mauritius DTAA in 2026 with Capital Gains, PPT and Rates; India Netherlands DTAA for Companies in 2026 with Rates and MFN; India Singapore DTAA for Companies in 2026 with Rates, LOB and PPT and 4 more
The rule in section 15(2) of the Copyright Act, 1957 that copyright in a design capable of registration under the Designs Act, 2000, but not registered, ends once the owner or a licensee reproduces the article more than fifty times by an industrial process.
Used in: Copyright Registration in India and Designs for Foreign Companies
The annual law that enacts the Union Budget 2026 tax proposals. It is Act No. 4 of 2026, it received assent on 30 Mar 2026, and it sets rates for tax year 2026-27 under the Income Tax Act, 2025 and amends GST and customs law.
Used in: Budget 2026 Changes for Foreign Owned Companies and Non Residents
An entity registered under the IFSCA (Finance Company) Regulations, 2021 to carry on lending, factoring, investment, derivatives or treasury activities in an IFSC, or non core activities such as operating leases of aircraft and ships. A branch registered for the same purpose is a Finance Unit.
Used in: GIFT City IFSC for Foreign Companies in 2026: Who Sets Up and Why
The total of an Indian entity's ODI, debt other than OPI, and non fund based facilities such as guarantees given for foreign entities, as defined in the Overseas Investment Rules, 2022. Under Schedule I it cannot exceed 400 percent of net worth on the last audited balance sheet without approval, and a performance guarantee counts at 50 percent.
Used in: ODI Rules 2022 for Indian Companies Investing Abroad in 2026
The period for which a company prepares its financial statements, defined in section 2(41) of the Companies Act, 2013. It ends on 31 March each year. A company formed on or after 1 January closes its first year on 31 March of the next year.
Used in: Financial Year in India for a Foreign Subsidiary of a December Parent
The auditor of a newly registered company, appointed by its board within 30 days of registration under section 139(6) of the Companies Act, 2013. If the board fails, the members appoint one at an extraordinary general meeting within 90 days. The first auditor holds office until the end of the first AGM.
Used in: First Auditor Appointment and Form ADT-1 for Foreign Owned Companies
Engagement on a written contract for a fixed period, defined in section 2(o) of the Industrial Relations Code, 2020 and section 2(34) of the Code on Social Security, 2020. Pay and benefits must match a permanent comparator. Section 2(o) makes a fixed term worker eligible for gratuity after one year of service under the contract.
Used in: Gratuity Rules 2026 for Fixed Term Employees and the One Year Rule; New Labour Code 2026 and What Foreign Owned Companies Must Change; Termination of Employee in India and Retrenchment Rules in 2026
Foreign Liabilities and Assets Information Reporting, RBI's online system at flair.rbi.org.in for filing the annual FLA return under FEMA. A new entity registers through the new entity user option with a verification letter and an authority letter, then files the return, saves the acknowledgement and asks there for permission to revise after the audit.
A minimum level of wages that the Central Government fixes under section 9 of the Code on Wages, 2019, with regard to minimum living standards. A state cannot fix a minimum wage below it, and may not cut an existing minimum wage that is already higher.
Used in: New Labour Code Salary Structure and the 50 Percent Wage Rule in 2026
A company incorporated outside India. It is taxed in India only on income that accrues or arises in India or is deemed to, at a base rate of 35 percent from AY 2025-26. An Indian subsidiary of a foreign parent is a domestic company, not a foreign company.
Used in: Corporate Tax Rate in India for Foreign Companies: 35%+
Under rule 2(r) of the Non Debt Instruments Rules, 2019, investment through equity instruments by a person resident outside India in an unlisted Indian company, or 10 percent or more of the post issue paid up equity capital of a listed Indian company on a fully diluted basis. It is reported by the Indian company and the resident party.
Used in: FDI vs FPI in India, the 10 Percent Line and Reclassification in 2026; US LLC to Indian Subsidiary: Structure and Registration
The department of the Reserve Bank of India that administers the Foreign Exchange Management Act, 1999. Its Regional Offices handle late submission fees, approvals and compounding for entities in their area, decided by the registered office. For a late FLA return, RBI's FAQ directs the entity to the FED of its Regional Office.
The Act that governs foreign exchange and cross border investment in India. It replaced the Foreign Exchange Regulation Act, 1973 and is administered by the Reserve Bank of India through regulations and master directions. Reporting forms such as Form FC-GPR and the FLA return arise under it.
Used in: India Entry and Compliance FAQ: FEMA, Registration, Costs (2026); Top Virtual CFO Firms in India for Startups and Foreign Subsidiaries (2026); UK India Free Trade Agreement in Force: Business Impact (2026); Virtual CFO Services Cost in India (2026)
RBI's system through which AD banks report each foreign exchange transaction under a purpose code. Under A.P. (DIR Series) Circular No. 25 of 20 Mar 2019 banks file the R Returns fortnightly, on the 15th and at the month end. Regulation 18(1) of FEMA 23(R)/2026-RB keeps FETERS reporting.
Used in: Purpose Code P0802 and RBI Purpose Codes for Foreign Remittances 2026; Set Off Export Receivables Against Import Payables Under FEMA (2026)
The written permit a resident of India needs from the Controller before filing a patent application outside India, under section 39 of the Patents Act, 1970 and rule 71 of the Patents Rules, 2003. The Controller decides the request within 21 days. For defence or atomic energy inventions, the 21 days run from the Central Government's consent.
Used in: Patent Filing in India for Foreign Companies, PCT and Form 27
The term section 210 of the Income Tax Act, 2025 (old section 115AD) still uses for a SEBI registered investor notified by the Government. SEBI registered FPIs were notified as FIIs on 22 Jan 2014. Their securities are capital assets by law and section 393(4) removes tax deduction on their capital gains.
Used in: FDI vs FPI in India, the 10 Percent Line and Reclassification in 2026
The FIFP is the online single window, run by DPIIT, for foreign investment proposals that need government approval. The investor files the application and supporting documents there, and DPIIT routes it to the ministry concerned. Proposals involving land border countries also go to the Ministry of Home Affairs for security clearance before a decision.
Used in: Company Registration in India from Bangladesh: Process, Cost and Timeline (2026); Company Registration in India from China: Process, Cost and Timeline (2026); Company Registration in India from Hong Kong: Process, Cost and Timeline (2026); Company Registration in India from Nepal (2026); Press Note 3 Rules for FDI from Land Border Countries (2026)
The Reserve Bank of India's online portal for reporting foreign investment, including Forms FC-GPR and FC-TRS, through the Single Master Form. The company registers as an entity user, and its authorised dealer bank approves the business user account that submits the reports.
Used in: FC-GPR Compounding with RBI: 2026 FEMA Guide; FC-GPR Filing 2026: 30 Day Deadline, FIRMS Steps; FC-GPR Filing Consultants in India: 2026 Compliance Guide; FC-GPR vs FC-TRS: Differences and Filing Deadlines; FDI Compliance in India: 2026 Founder Guide and 2 more
An advice of credit that an AD bank or payment platform sends, often automatically, when foreign currency reaches an Indian account. It carries the same core details as a FIRC but is not a signed certificate. CBIC Circular 125/44/2019-GST accepts any document showing receipt of export proceeds, which helps where only a FIRA exists.
Used in: FIRC and eBRC for Export of Services from India in 2026
A FIRC is the certificate an Indian AD bank issues for money received from abroad, showing the amount, currency, remitter and purpose. Banks report the electronic version to RBI's EDPMS. Exporters of services use the FIRC, or the eBRC built on it, as evidence of foreign exchange receipts for GST refunds under rule 89 of the CGST Rules, 2017.
Used in: Annual Performance Report (APR) for Overseas Investment in 2026; Bank Account for a Foreign Subsidiary in India, KYC and Timeline 2026; Company Registration in India from Azerbaijan: Process, Cost and Timeline (2026); Company Registration in India from Bahrain: Process, Cost and Timeline (2026); Company Registration in India from Belgium: Process, Cost and Timeline (2026) and 40 more
The FLA return is an annual RBI return under FEMA that an Indian company files on the FLAIR portal if it holds foreign direct investment or overseas investment at the end of March. The RBI FAQ gives 15 July as the due date for the year ended 31 March. Companies with no such investment in either year are excused.
Used in: Annual Performance Report (APR) for Overseas Investment in 2026; Best FEMA Consultants in India (2026): How Foreign Founders Should Choose; Company Registration in India for British Citizens; Company Registration in India from Armenia: Process, Cost and Timeline (2026); Company Registration in India from Azerbaijan: Process, Cost and Timeline (2026) and 54 more
The common short form for an Indian company owned or controlled by persons resident outside India. Ownership means more than 50 percent of equity held beneficially. Control means the right to appoint a majority of directors or control management or policy decisions, as defined in the Companies Act, 2013.
Used in: Downstream Investment Rules for FOCCs and Form DI in 2026 (FEMA); Joint Venture Company in India with a Foreign Partner (2026)
A person resident outside India registered with SEBI under the SEBI (Foreign Portfolio Investors) Regulations, 2019 that holds listed or to be listed Indian securities below 10 percent of a company's paid up equity capital, as rule 2(t) of the Non Debt Instruments Rules, 2019 defines it. Category I and Category II registrations exist.
Used in: FDI vs FPI in India, the 10 Percent Line and Reclassification in 2026
Credit against Indian tax for income tax a resident has paid abroad on income also taxed in India, given by treaty under section 159 or unilaterally under section 160 of the Income Tax Act, 2025. Rule 76 of the Income Tax Rules, 2026 limits it to the lower of the foreign tax and the Indian tax on that income.
Used in: Form 67 and Foreign Tax Credit in India for Companies (2026)
The Bureau of Immigration office that registers foreigners under rule 12 of the Immigration and Foreigners Rules, 2025, through the Indian Visa Su Swagatam app or Form I on indianfrro.gov.in. A business visa holder who stays within 180 days a visit and a calendar year is exempt from registration.
Used in: Business Visa India 2026 for Foreign Founders and Board Directors; Employment Visa India 2026 for Foreign Employees and Directors; FRRO Registration 2026 for Foreign Employees, Steps and Deadlines
The withholding of gratuity, wholly or in part, because employment ended for misconduct that the law names. Chapter V of the Code on Social Security, 2020 governs it, as the Payment of Gratuity Act, 1972 did before. Read the Code's own list of grounds before withholding any amount.
Used in: Gratuity Rules 2026 for Fixed Term Employees and the One Year Rule
Form 128 is the application a payee makes under section 395 of the Income Tax Act, 2025 for a certificate allowing tax to be deducted at a lower rate or not at all. It replaced Form 13 from 1 Apr 2026. A payment covered by such a certificate goes in Part B of Form 145, with no Form 146.
Used in: Form 145 and 146 (Old 15CA and 15CB) for Foreign Remittances 2026; Form 27Q and Form 144 for TDS on Payments to Non Residents (2026); Form 49AA in 2026 and PAN for Foreign Companies (Now Form 96); Lower Deduction Certificate for Non Residents in 2026 (Form 128); Share Transfer between a Resident and a Non Resident in 2026 and 1 more
The TDS certificate on salary that an employer issues to each employee after the tax year, showing salary paid and tax deducted. It is issued under section 395 of the Income Tax Act, 2025, by 15 June after the tax year, and shows the perquisite value of parent shares.
Used in: RSU vs ESOP Tax in India 2026 for Employees of a Foreign Parent; Tax Year Under the Income Tax Act, 2025 and the End of Assessment Year
Form 131 is the TDS certificate, other than for salary, that an Indian payer downloads from TRACES and gives the payee, including a foreign parent. It replaced Form 16A from 1 Apr 2026. Rule 215(1) of the Income Tax Rules, 2026 requires it within 15 days of the due date of the quarterly Form 144 or Form 140.
Used in: Company Registration in India from Mexico; Form 27Q and Form 144 for TDS on Payments to Non Residents (2026); TAN Registration for Foreign Owned Companies in India (2026); Tax Year Under the Income Tax Act, 2025 and the End of Assessment Year
The application for a TAN under rule 216(1) of the Income Tax Rules, 2026, used by every applicant other than a government entity, including companies. It replaced Form 49B from 1 Apr 2026 and is filed through Protean with proof of identity, address and date of incorporation under rule 158(8).
Used in: TAN Registration for Foreign Owned Companies in India (2026)
The quarterly statement of tax deducted from salary that an employer files under section 397(3)(b) of the Income Tax Act, 2025. The due dates are 31 Jul, 31 Oct, 31 Jan and 31 May. A late statement attracts a fee of INR 200 a day under section 427, capped at the tax.
Used in: Employment Visa India 2026 for Foreign Employees and Directors; RSU vs ESOP Tax in India 2026 for Employees of a Foreign Parent
A PAN based challan cum statement through which certain deductors who do not need a TAN, such as an individual buying property or paying large rent, pay and report TDS under section 397(1)(c) of the Income Tax Act, 2025. It replaced Forms 26QB, 26QC, 26QD and 26QE.
Used in: TAN Registration for Foreign Owned Companies in India (2026)
The quarterly TDS statement for payments to non residents under section 397(3)(b) of the Income Tax Act, 2025, which replaced Form 27Q. It is due 31 Jul, 31 Oct, 31 Jan and 31 May under rule 219 of the Income Tax Rules, 2026, and records any lower deduction certificate number under section 395.
Used in: Compliance Calendar 2026-27 for Foreign Owned Companies in India; Form 27Q and Form 144 for TDS on Payments to Non Residents (2026); Income Tax Act 2025 Changes for Foreign Owned Companies in India; Lower Deduction Certificate for Non Residents in 2026 (Form 128); MIS Report Format for an Indian Subsidiary of a Foreign Parent (2026) and 2 more
Form 145 is the online statement an Indian payer files on the income tax portal before remitting money to a non resident. It replaced Form 15CA for money remitted from 1 Apr 2026 under the Income Tax Rules, 2026. Section 462 of the Income Tax Act, 2025 sets a penalty of INR 1,00,000 for a missing or wrong form.
Used in: Company Registration in India for British Citizens; Cross-Border Tax Advisory in India: PE Risk, Withholding, Fees (2026); Dividend Declaration by an Indian Subsidiary to Its Foreign Parent; EEFC Account for Foreign Owned Companies and Exporters in India (2026); FEMA Compliance for Australian-Owned Subsidiaries in India and 11 more
Form 146 is the certificate a chartered accountant in practice issues on the taxability, treaty position and TDS of a payment to a non resident. It supports Part C of Form 145 under rule 220 of the Income Tax Rules, 2026, replaced Form 15CB from 1 Apr 2026, and one certificate supports only one Form 145.
Used in: Company Registration in India from South Africa: Process, Cost and Timeline (2026); Cross-Border Tax Advisory in India: PE Risk, Withholding, Fees (2026); Dividend Declaration by an Indian Subsidiary to Its Foreign Parent; Form 145 and 146 (Old 15CA and 15CB) for Foreign Remittances 2026; Income Tax Act 2025 Changes for Foreign Owned Companies in India and 9 more
The annual statement a non resident with a liaison office in India files under section 505 of the Income Tax Act, 2025 and rule 234 of the Income Tax Rules, 2026, due within eight months of the tax year end. Section 460 sets a late penalty of INR 1,000 a day, then INR 1,00,000 after three months.
Used in: Liaison Office in India in 2026 with RBI Rules, AAC and Form 162
The annual information statement under the Income Tax Rules, 2026 that shows tax deducted, tax collected, tax paid and reported transactions for a taxpayer's PAN. It replaces Form 26AS for tax year 2026-27 onwards.
Used in: Tax Year Under the Income Tax Act, 2025 and the End of Assessment Year
The request without which the Indian Patent Office does not examine an application, under section 11B of the Patents Act, 1970. Rule 24B(1) sets the deadline at 31 months from the priority or filing date, whichever is earlier, for applications filed from 15 Mar 2024.
Used in: Patent Filing in India for Foreign Companies, PCT and Form 27
The tax audit report and statement of particulars under section 63 of the Income Tax Act, 2025, read with rule 47 of the Income Tax Rules, 2026. It merges Forms 3CA, 3CB and 3CD and starts with tax year 2026-27. FY 2025-26 audits still use Forms 3CA and 3CD.
Used in: Tax Audit Limit 2026 and Form 26 under Section 63 for Companies
The statement every patentee and licensee files on how far a patented invention is worked on a commercial scale in India, under section 146(2) of the Patents Act, 1970 and rule 131 of the Patents Rules, 2003. Since 15 Mar 2024 it is due once every three financial years.
Used in: Patent Filing in India for Foreign Companies, PCT and Form 27
The form in which an applicant discloses corresponding patent applications filed outside India and undertakes to keep the Controller informed, under section 8 of the Patents Act, 1970 and rule 12 of the Patents Rules, 2003. Failure to comply is a ground for revocation.
Used in: Patent Filing in India for Foreign Companies, PCT and Form 27
Form 41 is the online statement a non resident files on the income tax portal to claim treaty benefits under section 159(8) of the Income Tax Act, 2025. It replaced Form 10F from 1 Apr 2026. Rule 75 of the Income Tax Rules, 2026 requires it once per tax year, and payers ask for it before the first payment.
Used in: Corporate Tax Rate in India for Foreign Companies: 35%+; Dividend Declaration by an Indian Subsidiary to Its Foreign Parent; Form 10F and Tax Residency Certificate in India for Non Residents (2026); Form 145 and 146 (Old 15CA and 15CB) for Foreign Remittances 2026; How to Register a Company in India from Germany: Cost & Timeline (2026) and 20 more
The certificate of Indian tax residence that the Assessing Officer issues under rule 75(4) of the Income Tax Rules, 2026, replacing Form 10FB. A resident applies online in Form 42 (old Form 10FA) under rule 75(3). Several certificates can cover non overlapping periods within one tax year, for example to match a foreign calendar year.
Used in: Form 10F and Tax Residency Certificate in India for Non Residents (2026)
Form 44 is the statement of foreign income and foreign tax credit a resident files to claim relief in India for tax paid abroad, under the Income Tax Rules, 2026. It replaced Form 67 from tax year 2026-27. A foreign company that becomes resident in India under POEM uses it to claim credit for its home country tax.
Used in: Form 67 and Foreign Tax Credit in India for Companies (2026); ITR-6 for Foreign Owned Companies in 2026, Due Dates and Schedules; Place of Effective Management (POEM) in India for Foreign Companies; RSU vs ESOP Tax in India 2026 for Employees of a Foreign Parent
A form introduced by rule 76(15) of the Income Tax Rules, 2026. A resident files it to report that a foreign tax dispute has been finally settled, so it can claim credit for tax it left out of Form 44. It is due within six months from the end of the month of settlement, with evidence of payment.
Used in: Form 67 and Foreign Tax Credit in India for Companies (2026)
The accountant's report on international and specified domestic transactions under section 172 of the Income Tax Act, 2025, which replaced Form 3CEB from tax year 2026-27; Form 3CEB still covers FY 2025-26. A chartered accountant signs it, and it is due one month before the return due date, so by 31 Oct where the return is due on 30 Nov.
Used in: Arm's Length Price Methods in India: 6 Methods Explained for Founders; Budget 2026 Changes for Foreign Owned Companies and Non Residents; Compliance Calendar 2026-27 for Foreign Owned Companies in India; Cross-Border Tax Advisory in India: PE Risk, Withholding, Fees (2026); Delaware C Corp India Subsidiary: The 2026 Playbook and 25 more
The application a taxpayer files under the Income Tax Rules, 2026 to opt for safe harbour, replacing Forms 3CEFA, 3CEFB and 3CEFC. The IT services safe harbour is elected on it. The election is optional, and the taxpayer can instead keep to a regular benchmarking study.
Used in: Safe Harbour Rules for Transfer Pricing in India (2026)
Form 57 is the intimation that names which Indian constituent entity of an international group will file the group's master file in Form 56 where the group has more than one entity in India. It replaced Form 3CEAB under the Income Tax Rules, 2026 and is filed at least 30 days before the master file is due.
Used in: Form 3CEB: Applicability, Due Date, Penalties (AY 2026-27)
The chartered accountant's report that certifies a company's book profit computation for MAT under section 206 of the Income Tax Act, 2025. A company liable to MAT files it electronically on the income tax portal, with or before its return.
Used in: Minimum Alternate Tax in India for Foreign Companies and Subsidiaries
The PAN application for an individual who is not an Indian citizen, including OCI and PIO card holders. Rule 158 of the Income Tax Rules, 2026 prescribes it. A foreign director with Indian income, or anyone caught by section 262 or rule 159, needs it, while an Indian citizen abroad uses Form 93.
Used in: Form 49AA in 2026 and PAN for Foreign Companies (Now Form 96)
The PAN application for a company, LLP, firm, trust or association incorporated or formed outside India. Rule 158 of the Income Tax Rules, 2026 prescribes it. It needs an attested home country registration certificate, the foreign tax identification number and an Indian address for the representative, except for foreign portfolio investors.
Used in: Form 49AA in 2026 and PAN for Foreign Companies (Now Form 96)
The declaration a remitter signs, on paper or digitally, for an outward cross border remittance, ticking an RBI purpose code. The Master Direction on Other Remittance Facilities makes AD banks obtain it for every remittance, whatever the amount, and keep it for one year. Section 10(5) of FEMA backs the request.
Used in: Purpose Code P0802 and RBI Purpose Codes for Foreign Remittances 2026
The notice a company files with the Registrar of Companies on the MCA portal when it appoints an auditor. Section 139(1) of the Companies Act, 2013 requires it within 15 days of the meeting that appoints the auditor, and rule 4(2) of the Companies (Audit and Auditors) Rules, 2014 prescribes the form.
Used in: First Auditor Appointment and Form ADT-1 for Foreign Owned Companies; Statutory Audit of a Foreign Owned Indian Subsidiary in 2026; Statutory Audit of a US Subsidiary in India, Timeline and Penalties
The application a company makes to the Central Government under section 140(1) of the Companies Act, 2013 and rule 7 of the Audit Rules to remove an auditor before the term ends. It goes within 30 days of the board resolution, before the members pass the special resolution.
Used in: First Auditor Appointment and Form ADT-1 for Foreign Owned Companies
The statement an auditor files with the company and the Registrar of Companies within 30 days of resigning, under section 140(2) of the Companies Act, 2013 and rule 8 of the Audit Rules. It gives the reasons for the resignation and other relevant facts.
Used in: First Auditor Appointment and Form ADT-1 for Foreign Owned Companies
The online application form on the DGFT portal for issue or modification of an Importer Exporter Code. The applicant uploads bank and address proof, signs with a digital signature certificate or Aadhaar, and pays the fee set in Appendix 2K of the Handbook of Procedures.
Used in: IEC Registration for a Foreign Owned Company in India (2026 Guide)
The form prescribed by rule 8(2) of the Companies (Accounts) Rules, 2014 for disclosing contracts with related parties under section 188 in the board's report. Part 1 lists contracts not at arm's length and Part 2 lists material contracts at arm's length.
Used in: Related Party Transactions Under Section 188 for an Indian Subsidiary
The form in which a company files its adopted financial statements and attachments with the Registrar of Companies under section 137 of the Companies Act, 2013 and rule 12 of the Companies (Accounts) Rules, 2014. It is due within 30 days of the annual general meeting, and each late day adds INR 100 as additional fee.
Used in: Controlling Your Indian Subsidiary: Reporting, Audit and Costs (2026); Financial Reporting for Foreign Subsidiaries in India (2026); MGT-7 and AOC-4 Annual Filing for Foreign Owned Companies in 2026; Statutory Audit of a Foreign Owned Indian Subsidiary in 2026
The MCA form for filing consolidated financial statements prepared under section 129(3) of the Companies Act, 2013 by a company outside the XBRL Rules. A company within the XBRL Rules files its consolidated statements in XBRL instead, through a separate instance document.
Used in: XBRL Filing in India and Which Companies Must File AOC-4 XBRL (2026)
The version of Form AOC-4 filed as a tagged XBRL file under the Companies (Filing of Documents and Forms in XBRL) Rules, 2015. It applies to listed companies and their Indian subsidiaries, companies with INR 5 crore paid up capital or INR 100 crore turnover, and Ind AS companies. Rule 3(1A) also requires a PDF of the signed statements.
Used in: MGT-7 and AOC-4 Annual Filing for Foreign Owned Companies in 2026; XBRL Filing in India and Which Companies Must File AOC-4 XBRL (2026)
Form BEN-1 is the declaration a significant beneficial owner gives the Indian reporting company under section 90(1) of the Companies Act, 2013 and rule 3 of the SBO Rules. It is due within 30 days of becoming an SBO or of any change. Section 90(10) sets a penalty of INR 50,000 plus INR 1,000 a day, capped at INR 2,00,000.
Used in: BEN-2 and Significant Beneficial Owners with a Foreign Parent (2026)
Form BEN-2 is the return an Indian company files with the Registrar of Companies on the MCA21 portal under section 90(4) of the Companies Act, 2013. Rule 4 of the Companies (Significant Beneficial Owners) Rules, 2018 requires it within 30 days of receiving a BEN-1. There is no annual or nil BEN-2.
Used in: BEN-2 and Significant Beneficial Owners with a Foreign Parent (2026); Significant Beneficial Owner Case on LinkedIn India and Group CEOs
Form BEN-4 is the notice an Indian company sends under section 90(5) of the Companies Act, 2013 to a person it believes is, or knows of, a significant beneficial owner. Rule 2A of the SBO Rules requires it for every member other than an individual holding 10 percent or more. The recipient replies within 30 days.
Used in: BEN-2 and Significant Beneficial Owners with a Foreign Parent (2026); Significant Beneficial Owner Case on LinkedIn India and Group CEOs
The form under rule 3 of the Companies (Registration of Charges) Rules, 2014 for registering the creation or modification of a charge other than one securing debentures. The company and the charge holder both sign it, and the Registrar issues a certificate of registration in Form CHG-2.
Used in: CHG-1 Form for Registering a Charge on Loans to an Indian Company
The form under rule 8 of the Companies (Registration of Charges) Rules, 2014 by which a company tells the Registrar that a registered charge has been repaid or satisfied. Section 82 of the Companies Act, 2013 sets 30 days from payment, and the Registrar then records satisfaction in Form CHG-5.
Used in: CHG-1 Form for Registering a Charge on Loans to an Indian Company
The form under rule 3 of the Companies (Registration of Charges) Rules, 2014 for registering the creation or modification of a charge that secures debentures, or for rectifying particulars of such a charge. It replaces Form CHG-1 for debenture security.
Used in: CHG-1 Form for Registering a Charge on Loans to an Indian Company
The reporting form for a convertible note that a DPIIT recognised startup issues to a person resident outside India, used instead of Form FC-GPR. A convertible note is debt acknowledging money received that can convert into equity, and the Non Debt Instruments Rules, 2019 allow startups to issue it.
Used in: CCD vs CCPS for Foreign Investors under the FDI Rules in India (2026); FC-GPR Filing Consultants in India: 2026 Compliance Guide
The MCA form an implementing agency files to register for CSR work under rule 4(2) of the Companies (CSR Policy) Rules, 2014, required since 1 Apr 2021. A practising chartered accountant, company secretary or cost accountant verifies it, and the system issues a CSR Registration Number.
Used in: CSR Applicability for Foreign Owned Companies in India (2026)
The MCA form in which a company covered by section 135(1) of the Companies Act, 2013 reports its CSR details to the Registrar under rule 12(1B) of the Companies (Accounts) Rules, 2014. It is an addendum to AOC-4, with separate dates set for some years.
Used in: CSR Applicability for Foreign Owned Companies in India (2026)
The FEMA return an Indian entity or investment vehicle files with the Reserve Bank when its downstream investment counts as indirect foreign investment for the investee. Regulation 4(11) of FEMA 395/2019-RB requires it within 30 days from the date of allotment of the equity instruments.
Used in: Downstream Investment Rules for FOCCs and Form DI in 2026 (FEMA)
The Ministry of Corporate Affairs form a director may file to send the Registrar a copy of the resignation letter with reasons, within 30 days of resigning. Section 168(1) of the Companies Act, 2013 makes this filing optional for the director, while the company's Form DIR-12 is mandatory.
Used in: Removal of Director in India, Resignation and Replacement Rules 2026
The return of appointment, resignation or change of directors and key managerial personnel that a company files with the Registrar within 30 days under section 170(2) of the Companies Act, 2013. The fee depends on nominal share capital, and late filing adds 2 to 12 times the normal fee.
Used in: Director Identification Number for Foreign Directors in India 2026; Resident Director in India and the Section 149(3) 182 Day Rule (2026)
The KYC intimation every DIN holder files under rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014. From 31 Mar 2026 it falls due by 30 June after every third consecutive financial year, plus a filing within 30 days of a change in mobile, email or address.
Used in: Director Identification Number for Foreign Directors in India 2026
Form DPT-3 is the annual return of deposits, and of receipts not treated as deposits, that a company other than a government company files with the Registrar of Companies under rule 16 of the Companies (Acceptance of Deposits) Rules, 2014. It reports figures as on 31 March and is due by 30 June.
Used in: DPT-3 Return of Deposits 2026 for Foreign Owned Companies in India
The return that reports the receipt of ECB proceeds and each debt servicing payment. The borrower files it through its AD bank within seven calendar days after the month end under paragraph 16 of Schedule I. A late return pays a late submission fee under RBI Circular No. 16 of 2022, as changed in 2026.
Used in: Compliance Calendar 2026-27 for Foreign Owned Companies in India; Conversion of Loan into Equity in an Indian Subsidiary (2026); DPT-3 Return of Deposits 2026 for Foreign Owned Companies in India; External Commercial Borrowing from a Foreign Parent in India (2026)
The RBI form an Indian entity files with its designated AD bank to report overseas direct investment under regulation 10 of the Overseas Investment Regulations, 2022. It is filed before the first remittance or commitment, whichever is earlier, and again for each later loan, guarantee, restructuring or exit. It does the work of old Form ODI Parts I and III.
Used in: Annual Performance Report (APR) for Overseas Investment in 2026; ODI Rules 2022 for Indian Companies Investing Abroad in 2026
The form a foreign company files with the Registrar of Companies within 30 days of establishing a place of business in India, including a liaison office, under section 380(1) of the Companies Act, 2013. It records the charter, directors, the authorised Indian resident and the principal place of business, and changes are reported within 30 days.
Used in: Liaison Office in India in 2026 with RBI Rules, AAC and Form 162
The return a foreign company files with the Registrar to report an alteration in the particulars it registered for its Indian place of business. Section 380(3) of the Companies Act, 2013 requires the return within 30 days of the alteration.
Used in: Converting a Branch or Liaison Office into an Indian Subsidiary
The report an Indian company files with the Reserve Bank of India on the FIRMS portal after issuing equity instruments to a person resident outside India. Regulation 4(1) of FEMA 395/2019-RB requires it within 30 days of the issue. The shares must be issued within 60 days of receiving the money, or the money is refunded within 15 days after.
Used in: Angel Tax Abolished in India and What Foreign Investors Still Face; Bank Account for a Foreign Subsidiary in India, KYC and Timeline 2026; Best FEMA Consultants in India (2026): How Foreign Founders Should Choose; Branch Office vs Subsidiary in India for a UAE Company (2026); CCD vs CCPS for Foreign Investors under the FDI Rules in India (2026) and 135 more
The report on the FIRMS portal of a transfer of equity instruments between a resident and a person resident outside India. The resident party files it through its AD bank within 60 days of the transfer or of receiving the funds, whichever is earlier, under regulation 4(3) of FEMA 395/2019-RB. Deferred consideration needs a filing on every tranche.
Used in: Best FEMA Consultants in India (2026): How Foreign Founders Should Choose; Buyback of Shares by an Indian Subsidiary from a Foreign Parent (2026); Deferred Consideration under FEMA in FDI Share Transfers (2026); FC-GPR Compounding in 2026 and What RBI Charged for Late Filings; FC-GPR Filing 2026: 30 Day Deadline, FIRMS Steps and 10 more
The application a foreign entity files with its chosen Authorised Dealer Category I bank to open a liaison or branch office in India, under RBI's Master Direction on branch, liaison and project offices. It carries notarised and attested charter documents, audited accounts and any Letter of Comfort, and the bank then obtains a UIN from RBI.
Used in: Branch Office in India 2026 with RBI Rules, Tax Rate and Project Office; Liaison Office in India in 2026 with RBI Rules, AAC and Form 162
Form GST REG-09 is the application a non resident taxable person files on the GST portal under rule 13 of the CGST Rules, 2017, at least five days before starting business. The applicant also makes an advance deposit of tax equal to the estimated liability for the registration period.
Form GST REG-10 is the application an overseas supplier of online information and database access or retrieval services files to register under section 14 of the IGST Act, 2017 and rule 14 of the CGST Rules, 2017. It applies where the services go to unregistered recipients in India.
Used in: GST Registration for Foreign Companies in India; OIDAR Services GST in India for Foreign SaaS Companies (2026)
The refund application filed on the GST portal. A service exporter claims unutilised input tax credit under an LUT, or the IGST paid, within two years of the relevant date under section 54 of the CGST Act, 2017, with Statement 3 matching invoices to FIRC or eBRC numbers.
Used in: GST on Export of Services from India: Zero-Rated Rules & LUT; GST Refund for Exporters of Services Under LUT with RFD-01 (2026); LUT Filing for Exporters Under GST: Guide (2026)
The return of outward supplies filed under section 37 of the Central Goods and Services Tax Act, 2017. A regular taxpayer files it monthly, or quarterly under the QRMP scheme. It lists invoices issued, including export invoices, and feeds the recipient's credit.
Used in: Top GST Registration and Filing Services in India for Foreign Owned Businesses (2026)
Form GSTR-10 is the final return a taxpayer whose GST registration is cancelled files under section 45 of the CGST Act, 2017, within three months of the cancellation date or the cancellation order, whichever is later. A late return costs INR 100 a day under section 47, capped at INR 5,000, with an equal State GST fee.
Used in: Winding Up of Company in India 2026 by Strike Off or Liquidation
GSTR-2B is the auto drafted statement of input tax credit the GST portal generates for each return period from suppliers' GSTR-1 and IFF filings, under rule 60(7) of the CGST Rules, 2017. Section 16(2)(aa) of the CGST Act allows credit only on invoices the supplier has reported, so the credit claimed should match GSTR-2B.
The summary return filed under section 39 of the Central Goods and Services Tax Act, 2017, reporting output tax, input tax credit claimed and tax paid. A regular taxpayer files it monthly, or quarterly under the QRMP scheme, and it carries the reverse charge liability.
Used in: Top GST Registration and Filing Services in India for Foreign Owned Businesses (2026)
Form GSTR-5 is the return a non resident taxable person files under rule 63 of the CGST Rules, 2017 to report outward and inward supplies and tax paid for the registration period. It is due by the 13th of the next month, or within seven days after the registration ends, if earlier.
The monthly GST return filed by a registered OIDAR or online money gaming supplier located outside India, due by the 20th of the next month under rule 64 of the CGST Rules. It reports sales to non taxable online recipients by State and sales to registered persons by GSTIN.
Used in: OIDAR Services GST in India for Foreign SaaS Companies (2026)
The form in CAROTAR 2020 that lists the minimum origin information an importer must hold when claiming FTA duty. It covers the production process, the origin criterion claimed and, for goods not wholly obtained, the data that show the criterion is met. Rule 4 requires it.
Used in: Rules of Origin in India 2026: CAROTAR 2020 Guide for FTA Importers
The report a keeper of accommodation, hospital or medical institution sends on a foreigner it houses, under section 8 of the Immigration and Foreigners Act, 2025 and rule 17 of the 2025 Rules. Rule 17(5) requires it electronically within 24 hours of arrival. Under the old rules it was called Form C.
Used in: FRRO Registration 2026 for Foreign Employees, Steps and Deadlines
The MCA form for notice of the situation, or change of situation, of a company's registered office under section 12 of the Companies Act, 2013 and rules 25 and 27 of the Companies (Incorporation) Rules, 2014. It carries proof of the premises, such as a lease with a rent receipt and a utility bill.
Used in: Change of Registered Office in India Within or Across States (2026)
The application to the Regional Director under sections 12(5) and 13(4) of the Companies Act, 2013 and rules 28 and 30 of the Companies (Incorporation) Rules, 2014. A company files it to shift its registered office to another ROC in the same State, or to another State.
Used in: Change of Registered Office in India Within or Across States (2026)
The application to the Registrar for approval of a change of name under section 13(2) of the Companies Act, 2013 and rule 29 of the Companies (Incorporation) Rules, 2014. It carries the special resolution and any regulator approval, and is filed after Form MGT-14.
Used in: Change Company Name in India with RUN, MGT-14 and INC-24 (2026)
The fresh certificate of incorporation the Registrar issues after approving a change of name under section 13(3) of the Companies Act, 2013. The change of name is complete and effective only from the date of this certificate. The company keeps its CIN.
Used in: Change Company Name in India with RUN, MGT-14 and INC-24 (2026)
The format of the newspaper notice a company publishes under rule 30(5) of the Companies (Incorporation) Rules, 2014 before it applies to shift its registered office to another State. It appears in an English newspaper and a vernacular newspaper and invites objections to the Regional Director.
Used in: Change of Registered Office in India Within or Across States (2026)
The Ministry of Corporate Affairs form a company uses to file an order of a court, the Tribunal or another competent authority with the Registrar of Companies. Rule 40 of the Companies (Incorporation) Rules, 2014 requires the Regional Director's order on a different financial year to be filed in it within 30 days.
Used in: Change of Registered Office in India Within or Across States (2026); Financial Year in India for a Foreign Subsidiary of a December Parent
The FEMA report an LLP files on RBI's FIRMS portal after receiving capital contribution or consideration for profit shares from a person resident outside India. Regulation 4(6) of FEMA 395/2019-RB requires it within 30 days from the date of receipt of the amount.
Used in: FDI in LLP in India 2026, Rules for Foreign Partners and Reporting
The FEMA report for a disinvestment or transfer of capital contribution or profit share between a resident and a non resident in an LLP. Regulation 4(7) of FEMA 395/2019-RB requires it within 60 days of receipt of funds, and the resident transferor or transferee files it.
Used in: FDI in LLP in India 2026, Rules for Foreign Partners and Reporting
Form MGT-14 is the filing of specified resolutions and agreements with the Registrar of Companies under section 117 of the Companies Act, 2013, normally within 30 days of passing them. The special resolution for a private placement or preferential allotment must be filed before the PAS-4 offer letter goes out.
Used in: Change Company Name in India with RUN, MGT-14 and INC-24 (2026); PAS-3 Return of Allotment for Shares Issued to Foreign Investors
Form MGT-6 is the return an Indian company files with the Registrar within 30 days of receiving a section 89 declaration of beneficial interest, such as MGT-4 from a nominee holding a share for a foreign parent and MGT-5 from the parent. Section 89(6) of the Companies Act, 2013 and rule 9(3) of the Management Rules require it.
Used in: BEN-2 and Significant Beneficial Owners with a Foreign Parent (2026); Nominee Shareholder for a Wholly Owned Subsidiary in India
The annual return of a company, filed with the Registrar of Companies under section 92 of the Companies Act, 2013 and rule 11 of the Companies (Management and Administration) Rules, 2014. It reports members, directors, meetings and share capital as at 31 March, and is due within 60 days from the annual general meeting.
Used in: Financial Reporting for Foreign Subsidiaries in India (2026); MGT-7 and AOC-4 Annual Filing for Foreign Owned Companies in 2026; Statutory Audit of a Foreign Owned Indian Subsidiary in 2026
The abridged annual return that a small company or One Person Company files under the first proviso to section 92(1) of the Companies Act, 2013. A subsidiary of a foreign company cannot use it, because section 2(85) excludes holding and subsidiary companies from the small company definition.
Used in: MGT-7 and AOC-4 Annual Filing for Foreign Owned Companies in 2026
The certificate by a company secretary in practice under section 92(2) of the Companies Act, 2013 and rule 11(2) of the Companies (Management and Administration) Rules, 2014. It confirms that the annual return states the facts correctly and the company complied with the Act. It applies at INR 10 crore of paid up capital or INR 50 crore of turnover.
Used in: MGT-7 and AOC-4 Annual Filing for Foreign Owned Companies in 2026
The application to the Registrar of Companies for dormant status under section 455 of the Companies Act, 2013 and rule 3 of the Companies (Miscellaneous) Rules, 2014. It needs a special resolution, or the consent of shareholders holding three fourths of the share value.
Used in: Dormant Company Audit in India for Foreign Owned Subsidiaries (2026)
The annual return of a dormant company under rule 7 of the Companies (Miscellaneous) Rules, 2014. It shows the company's financial position, is audited by a Chartered Accountant in practice, and is filed with the annual fee within 30 days of the end of each financial year.
Used in: Dormant Company Audit in India for Foreign Owned Subsidiaries (2026)
The return that reports overseas portfolio investment through an Authorised Dealer bank under regulation 10(3) of the Overseas Investment Regulations, 2022. For parent shares that employees hold under a global employee plan, the Indian employer files it within 60 days after each half year ending 30 Sep and 31 Mar.
Used in: RSU vs ESOP Tax in India 2026 for Employees of a Foreign Parent
Form PAS-3 is the return of allotment a company with share capital files with the Registrar of Companies after allotting securities, under section 39(4) of the Companies Act, 2013 and rule 12 of the Companies (Prospectus and Allotment of Securities) Rules, 2014. It lists the allottees and is due within 30 days, or 15 days for a private placement.
Used in: Foreign Shareholder Allotment India: FEMA & FC-GPR (2026); PAS-3 Return of Allotment for Shares Issued to Foreign Investors; Private Placement of Shares to Foreign Investors under Section 42; Rights Issue by an Indian Subsidiary to Its Foreign Parent in 2026
Form PAS-4 is the private placement offer letter a company sends to a named offeree under rule 14 of the Companies (Prospectus and Allotment of Securities) Rules, 2014. The company can send it only after the special resolution is filed in Form MGT-14, and within 30 days of recording the offeree's name in Form PAS-5.
Used in: PAS-3 Return of Allotment for Shares Issued to Foreign Investors; Private Placement of Shares to Foreign Investors under Section 42
The record of private placement offers that a company keeps under rule 14 of the Companies (Prospectus and Allotment of Securities) Rules, 2014. It lists the persons to whom the company sent Form PAS-4, with the date of each offer.
Used in: Private Placement of Shares to Foreign Investors under Section 42
The general application form a company files with the Regional Director of the Ministry of Corporate Affairs. Under rule 40 of the Companies (Incorporation) Rules, 2014, a holding, subsidiary or associate company of a foreign company uses it to seek a financial year other than April to March.
Used in: Financial Year in India for a Foreign Subsidiary of a December Parent; Statutory Audit of a US Subsidiary in India, Timeline and Penalties
Securities transfer form for physical shares, prescribed by rule 11 of the Companies (Share Capital and Debentures) Rules, 2014 under section 56(1) of the Companies Act, 2013. Both parties execute it, and it must be dated and stamped. A transfer between two demat accounts does not need it.
Used in: Share Transfer between a Resident and a Non Resident in 2026
Form SH-7 is the notice a company files with the Registrar within 30 days of altering its share capital, including an increase in authorised capital. Its fee is the scale fee on the new capital less the scale fee on the existing capital, plus state stamp duty where it applies.
Used in: How Much Authorised Capital a Foreign Subsidiary Needs: Our View
Form STK-2 is the application a company files under section 248(2) of the Companies Act, 2013 to have its name struck off the register. It needs a section 248(1) ground, nil liabilities and a special resolution. Rule 4 of the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016 sets the INR 10,000 fee.
Used in: Dormant Company Audit in India for Foreign Owned Subsidiaries (2026); Winding Up of Company in India 2026 by Strike Off or Liquidation
The form of authorisation under the Trade Marks Rules, 2017 by which an applicant appoints a trade mark agent or advocate to act for it before the Trade Marks Registry. Foreign applicants usually sign it so their Indian agent can file Form TM-A, reply to examination reports and attend hearings.
Used in: Top Trademark Registration Services in India (2026)
The single application form for registering a trade mark under the Trade Marks Act, 1999 and the Trade Marks Rules, 2017. It is filed with the Trade Marks Registry under the Controller General of Patents, Designs and Trade Marks. One TM-A can cover one or several classes, with the government fee charged per class.
Used in: Top Trademark Registration Services in India (2026); Trademark Registration for a Foreign Company in India (2026)
The Trade Marks Registry form for post registration changes under the Trade Marks Act, 1999. A company that owns registered trademarks uses it to record its new name as proprietor where ownership has not changed by assignment or transmission.
Used in: Change Company Name in India with RUN, MGT-14 and INC-24 (2026)
The application form for registering a work with the Copyright Office in India under rule 70 of the Copyright Rules, 2013, filed with a Statement of Particulars. Each application covers one work, and the fee depends on the type of work.
Used in: Copyright Registration in India and Designs for Foreign Companies
A treaty under which two parties cut or remove customs duty on goods that originate in each other's territory and open parts of their services markets. In India, customs gives effect to an FTA through tariff notifications under section 25 of the Customs Act, 1962 and origin rules under section 5 of the Customs Tariff Act, 1975.
Used in: India EU FTA 2026: Status, Tariffs and What Changes for EU Companies
The Financial Reporting Standard applicable in the UK and Republic of Ireland, issued by the Financial Reporting Council. Many unlisted UK groups use it for consolidated accounts. An Indian subsidiary still prepares its statutory accounts under Indian AS or Ind AS and sends an FRS 102 pack.
Used in: Statutory Audit of a UK Subsidiary in India for the UK Parent (2026)
The method in the explanation to rule 2(r) of the Non Debt Instruments Rules, 2019 for testing the 10 percent FDI line. It counts every share that would exist if all options, warrants and convertible instruments were exercised, so a larger denominator lets an investor hold more issued shares before reaching 10 percent.
Used in: FDI vs FPI in India, the 10 Percent Line and Reclassification in 2026
An analysis of the functions each related party performs, the assets it uses and the risks it bears. It forms the core of the Local File under rule 84 of the Income Tax Rules, 2026 and supports the choice of the most appropriate method and comparables.
G
A domestic law power in Chapter XI, sections 178 to 184, of the Income Tax Act, 2025 (earlier Chapter X-A, sections 95 to 102, of the 1961 Act) to deny a tax benefit from an impermissible avoidance arrangement. Rule 128 of the Income Tax Rules, 2026 switches it off for a tax benefit of INR 3 crore or less.
Used in: Form 10F and Tax Residency Certificate in India for Non Residents (2026); GAAR in India for Foreign Companies and Holding Structures (2026); India Mauritius DTAA in 2026 with Capital Gains, PPT and Rates; India UAE DTAA for Companies in 2026 with Rates, Residency and PPT; Tiger Global Case 2026, Treaty Shopping and Mauritius Investors
An Indian entity owned by a foreign group that performs work for the group, such as engineering, finance operations, analytics or research. Indian law has no separate licence for it. It is set up as a company, branch or LLP and follows the normal company, tax, FEMA and labour laws.
Used in: Best City in India for a Tech Company in 2026: Four Hubs Compared; Global Capability Centre India 2026 Guide to Structure, Tax and Compliance
The not for profit body that runs the Global LEI System, accredits LEI issuers and publishes the public LEI database. Indian AD banks validate the LEIs their customers quote against this database, as RBI's 10 Dec 2021 circular requires.
Used in: LEI Registration in India for Cross Border Payments and Loans (2026)
A GSTIN is the 15 character number the GST portal allots to each registered person in each State. It combines a two digit State code, the holder's PAN, an entity code and a check character. A foreign company and its Indian subsidiary each hold their own GSTIN.
The entry route on which foreign investment needs prior approval from the administrative ministry or department, sought through the National Single Window System, before shares are issued. It applies to sectors such as news media, multi brand retail and public sector banks, to stakes above automatic route caps, and to most investment from countries sharing a land border with India.
Used in: Company Registration in India for Foreign Founders; Company Registration in India from Bahrain: Process, Cost and Timeline (2026); Company Registration in India from Bangladesh: Process, Cost and Timeline (2026); Company Registration in India from China: Process, Cost and Timeline (2026); Company Registration in India from Hong Kong: Process, Cost and Timeline (2026) and 10 more
The rule in the 2016 protocol to the India Mauritius treaty under which India taxes gains only on shares acquired on or after 1 Apr 2017. Gains on shares bought earlier stay under the older residence rule, subject to anti abuse rules in Indian law and the treaty.
Used in: Tiger Global Case 2026, Treaty Shopping and Mauritius Investors
The rule in Article 13(4) of the India Mauritius treaty and Article 13(4A) of the India Singapore treaty that keeps gains on Indian shares acquired before 1 Apr 2017 taxable only in the seller's home country. Singapore claims must also pass the Article 24A limitation of benefits test.
Used in: India Mauritius DTAA in 2026 with Capital Gains, PPT and Rates; Tax on Sale of Unlisted Shares by Non Residents in India (2026)
Payment to an employee for service, governed by section 53 of the Code on Social Security, 2020. It is 15 days' wages for each completed year, with a part year over six months counted as a year. The payout cap is INR 20,00,000, and the employer must pay within 30 days.
Used in: Gratuity Rules 2026 for Fixed Term Employees and the One Year Rule; New Labour Code 2026 and What Foreign Owned Companies Must Change
A written direction by an employee naming who is to receive gratuity if the employee dies. Section 55 of the Code on Social Security, 2020 requires an employee who has completed one year of service to nominate, in the manner the appropriate Government prescribes.
Used in: Gratuity Rules 2026 for Fixed Term Employees and the One Year Rule
A committee of up to 10 members, with equal employer and worker members, that an establishment with 20 or more workers must set up under section 4 of the Industrial Relations Code, 2020. It must decide each worker complaint within 30 days of the application.
Used in: New Labour Code 2026 and What Foreign Owned Companies Must Change
The financial information an Indian subsidiary sends its foreign parent for consolidation, prepared under group policies such as IFRS or US GAAP to the parent's dates. It is separate from the statutory financial statements that section 129 of the Companies Act, 2013 requires.
Used in: Financial Year in India for a Foreign Subsidiary of a December Parent; Ind AS Applicability for a Foreign Owned Private Company in 2026; Statutory Audit of a US Subsidiary in India, Timeline and Penalties
The GST Council is the body under Article 279A of the Constitution, chaired by the Union Finance Minister with State finance ministers as members. It recommends GST rates, exemptions, thresholds and law changes. Its recommendations take effect only through notifications, circulars or amendments to the CGST Act and IGST Act.
Used in: 57th GST Council Meeting Recommendations Explained (8 October 2026)
H
The Hague Convention of 5 Oct 1961 Abolishing the Requirement of Legalisation for Foreign Public Documents, which India joined in 2005. Between member states, an apostille from the issuing country replaces embassy legalisation. The Convention does not apply between two states where one objected to the other's accession, so check the HCCH status table for each pair.
Used in: Apostille or Notarisation for Company Registration in India; Company Registration in India from Bulgaria: Process, Cost and Timeline (2026); Company Registration in India from Ethiopia: Process, Cost and Timeline (2026); Company Registration in India from Hungary: Process, Cost and Timeline (2026); Company Registration in India from Ivory Coast: Process, Cost and Timeline (2026) and 6 more
A Handelsregisterauszug is an extract from the German commercial register (Handelsregister), which local courts keep under the German Commercial Code (HGB). For an Indian subsidiary, it proves the GmbH's existence, registered details and who may represent it. It is usually legalised and translated into English for the Indian Registrar and bank.
Used in: How to Register a Company in India from Germany: Cost & Timeline (2026)
The Department of Economic Affairs list of sectors that count as infrastructure for lending and policy purposes in India. PIB records that the Union Budget 2022-23 included data centres in the list, which gives them easier access to infrastructure credit.
Used in: Data Centre India Tax Holiday 2026: Incentives, Rules and Approvals
Executive and general administration costs that a non resident incurs outside India for its Indian business, such as rent, salaries and travel of staff managing it from abroad. Section 60 of the Income Tax Act, 2025 (old section 44C) caps the deduction at 5 percent of adjusted total income.
Used in: Branch Office in India 2026 with RBI Rules, Tax Rate and Project Office
I
The electronic gateway of the Central Board of Indirect Taxes and Customs. IEC holders register on it to file and track bills of entry and shipping bills, register AD codes and bank accounts, and see their customs data. DGFT sends each IEC to the customs system on issue.
Used in: Customs Duty in India 2026: BCD, SWS, IGST and Valuation Explained; IEC Registration for a Foreign Owned Company in India (2026 Guide)
A branch of an Indian or foreign parent bank set up in an IFSC under the IFSCA (Banking) Regulations, 2020. It deals in specified foreign currencies. A subsidiary form, the IFSC Banking Company, is also allowed, with a higher capital floor.
Used in: GIFT City IFSC for Foreign Companies in 2026: Who Sets Up and Why
A unit set up in an International Financial Services Centre with registration, licence or authorisation from IFSCA. The IFSC itself sits inside a special economic zone under section 18 of the Special Economic Zones Act, 2005, so the unit also holds an SEZ Letter of Approval.
Used in: GIFT City IFSC for Foreign Companies in 2026: Who Sets Up and Why
An arrangement whose main purpose is a tax benefit and which creates non arm's length rights, misuses the Act, lacks commercial substance, or uses means not ordinarily employed for bona fide purposes. Section 179 of the Income Tax Act, 2025 defines it, and one tax driven step can taint the whole arrangement.
Used in: GAAR in India for Foreign Companies and Holding Structures (2026)
The RBI system in which AD banks record bills of entry, service imports and outward remittances for imports, and match them against each other. Regulation 18 of the 2026 Export and Import Regulations requires banks to enter non EDI data within five working days and mark off entries once payment is made.
Used in: Advance Remittance for Import Under FEMA, Limits and IDPMS (2026); Set Off Export Receivables Against Import Payables Under FEMA (2026)
A supply where the supplier is located outside India, the recipient is located in India and the place of supply is in India, as defined in section 2(11) of the IGST Act, 2017. It is an inter State supply and attracts IGST.
Used in: Reverse Charge on Import of Services from a Foreign Parent (2026)
A ten character code that the Directorate General of Foreign Trade issues under section 7 of the Foreign Trade (Development and Regulation) Act, 1992. It is the same as the holder's PAN, except for some older numeric codes. No person may import or export goods without one unless an exemption in the Handbook of Procedures applies.
Used in: Chemical Company Registration in India for Foreign Investors (2026); Company Registration in India from Canada: Process and Compliance (2026); FIRC and eBRC for Export of Services from India in 2026; IEC Registration for a Foreign Owned Company in India (2026 Guide); Manufacturing Company Registration in India for Foreign Parents (2026)
The party that files the US customs entry, owes the duty and can claim any refund. In most US parent and Indian subsidiary set ups the parent is the importer of record, so US tariffs fall on the parent unless contract terms pass them back.
Used in: India US Trade Deal 2026: Tariffs and What It Means for US Groups
A company that, during the last two financial years, has carried on no business or operation, made no significant accounting transaction, or filed no financial statements and annual returns. The Explanation to section 455 of the Companies Act, 2013 defines it, and such a company may apply for dormant status.
Used in: Dormant Company Audit in India for Foreign Owned Subsidiaries (2026)
A cross border merger in which the resultant company, the one that survives, is an Indian company. Regulation 2 of the Foreign Exchange Management (Cross Border Merger) Regulations, 2018 defines it, and section 234 of the Companies Act, 2013 with rule 25A of the CAA Rules provides the company law route.
Used in: Cross Border Merger in India Under Rule 25A and FEMA (2026); Reverse Flip to India for US and Singapore Holding Companies (2026)
INC-22 is the MCA form for verifying the registered office and for notifying a change in its situation. Rule 25 lists the documents it carries, and a change must be filed within 30 days.
Used in: Registered Office Address Proof for a New Company in India
Net sales of goods manufactured in India in a year, minus net sales of the same goods in the base year set by the scheme guidelines. Most PLI schemes pay their incentive only on this increase, and only if the company also meets the incremental investment threshold for that year.
Used in: PLI Scheme 2026: Manufacturing Incentives in India for Foreign Firms
India has no comprehensive Double Taxation Avoidance Agreement with Argentina, so treaty relief under section 159 of the Income Tax Act, 2025 is not available on Argentine payments. Dividends, service fees, interest and royalties that an Indian company pays to an Argentine parent are taxed at Indian domestic withholding rates.
Used in: Company Registration in India from Argentina: Process, Cost and Timeline (2026)
The India Australia DTAA is the 1991 tax treaty between India and Australia. Article 10 caps Indian tax on dividends paid to an Australian resident beneficial owner at 15 percent. To claim treaty rates, the Australian payee gives the Indian payer a Tax Residency Certificate and files Form 41 under section 159 of the Income Tax Act, 2025.
A single window launched by the Government of India in February 2025 to help businesses from EFTA states invest in India. It supports investors in sectors such as renewable energy, life sciences, engineering and digital transformation, and promotes joint ventures and SME partnerships.
Used in: India EFTA TEPA 2026: What Swiss and Norwegian Investors Should Know
The India France Double Taxation Avoidance Agreement, applied in India through section 159 of the Income Tax Act, 2025. Under its current text it caps Indian withholding on dividends paid to a French resident beneficial owner at 10 percent. The claim needs a French tax residency certificate and Form 41 filed on the Indian income tax portal.
Used in: Company Registration in India from France: Process, Cost and Timeline (2026)
The India Germany DTAA is the 1995 tax treaty between India and Germany. It caps Indian tax at 10 percent on dividends, interest, and royalties or fees for technical services paid to a German resident beneficial owner. The payee claims the rate with a Tax Residency Certificate and Form 41 under section 159 of the Income Tax Act, 2025.
Used in: How to Register a Company in India from Germany: Cost & Timeline (2026)
India's tax treaty with Greece, signed in the 1960s and given effect in India under section 159 of the Income Tax Act, 2025 (old section 90). Its older drafting lacks several articles found in modern OECD based treaties. Check each dividend, interest, royalty or fee payment against the actual text; where the treaty is silent, domestic law generally governs.
Used in: Company Registration in India from Greece: Process, Cost and Timeline (2026)
The tax treaty between India and Japan, given effect in India by section 159 of the Income Tax Act, 2025. It caps Indian withholding at 10 percent on dividends, interest, royalties and fees for technical services paid to a Japanese beneficial owner that meets its conditions.
Used in: How to Register a Company in India from Japan: Cost & Timeline (2026)
The India Luxembourg Double Taxation Avoidance Agreement decides which country may tax dividends, interest, royalties, fees and gains paid by an Indian company to a Luxembourg resident, and caps Indian withholding. Section 159 of the Income Tax Act, 2025 gives it effect. A claim needs a Luxembourg tax residency certificate, Form 41 and evidence of beneficial ownership.
Used in: Company Registration in India from Luxembourg: Process, Cost and Timeline (2026)
The tax treaty between India and the Netherlands, applied under section 159 of the Income Tax Act, 2025. It caps Indian tax at 10 percent on dividends and interest paid to a Dutch resident beneficial owner holding a Tax Residency Certificate and Form 41. After the Supreme Court's Nestle SA ruling (19 Oct 2023), the dividend rate stays 10 percent.
Used in: Company Registration in India from the Netherlands: Process, Cost and Timeline (2026)
India and Seychelles have an agreement for the exchange of information on taxes, but no comprehensive Double Taxation Avoidance Agreement. A TIEA lets the two tax authorities share information. It gives no reduced withholding rates, so dividends, interest, royalties and fees paid to a Seychelles resident are taxed at the Income Tax Act, 2025 rates.
Used in: Company Registration in India from Seychelles: Process, Cost and Timeline (2026)
India's representative office in Taipei. India and Taiwan do not maintain formal diplomatic relations, so the ITA acts as the Indian mission for Taiwan. A founder preparing documents in Taiwan asks it for the current authentication instructions before arranging signatures or certification.
Used in: Company Registration in India from Taiwan: Process, Cost and Timeline (2026)
The India UAE CEPA is the bilateral trade agreement in force since 1 May 2022. It cuts customs duties and eases trade in goods and services between the two countries. It does not change income tax, so withholding on dividends, interest and fees still follows the India UAE DTAA and the Income Tax Act, 2025.
Used in: Dubai to India Company Registration: UAE Parent Documents
The India UAE Double Taxation Avoidance Agreement decides which country may tax income flowing between the two countries and caps Indian tax on dividends paid to a UAE resident beneficial owner at 10 percent. Section 159 of the Income Tax Act, 2025 gives it effect, and a claim needs a UAE tax residency certificate and Form 41.
Used in: Dubai to India Company Registration: UAE Parent Documents
The accounting standards converged with IFRS, notified under the Companies (Indian Accounting Standards) Rules, 2015. An unlisted company applies them from an Indian net worth of INR 250 crore, or when an Indian group company must. The size of a foreign parent is irrelevant. Other companies follow the Accounting Standards (AS).
Used in: Ind AS Applicability for a Foreign Owned Private Company in 2026; Statutory Audit of a Foreign Owned Indian Subsidiary in 2026; Virtual CFO for a Foreign Subsidiary in India (2026 Guide); XBRL Filing in India and Which Companies Must File AOC-4 XBRL (2026)
The Indian company through which a foreign company must make all its sales to users in India to keep the Schedule IV serial 13C exemption. The reseller pays Indian tax on its own income from those sales.
Used in: Data Centre India Tax Holiday 2026: Incentives, Rules and Approvals
Downstream investment received by an Indian entity from an Indian entity that has foreign investment and is not owned and controlled by resident Indian citizens, or is owned or controlled by non residents. Under rule 23 of the NDI Rules, it counts towards the investee's sector cap and entry route.
Used in: Downstream Investment Rules for FOCCs and Form DI in 2026 (FEMA)
A sale of shares in a foreign company that draws its value substantially from assets in India. Explanation 5 to section 9(1)(i) of the Income Tax Act, 1961 deems such shares to be situated in India, so the gain can be taxed in India unless a treaty protects it.
Used in: Reverse Flip to India for US and Singapore Holding Companies (2026); Tiger Global Case 2026, Treaty Shopping and Mauritius Investors
Prior approval under the Industries (Development and Regulation) Act, 1951, needed only for a short list of industries that includes some hazardous chemicals. Most chemical segments need none, so a foreign investor checks the product slate against the list before structuring.
Used in: Chemical Company Registration in India for Foreign Investors (2026)
A separate GST registration under section 24(viii) of the CGST Act through which a company passes credit on common services to its other GST registrations. Rule 39 of the CGST Rules sets the turnover based method of distribution.
Used in: GST on Related Party Transactions and Cross Charges in India (2026)
Input tax credit is the GST a registered person pays on goods or services used in the course of business, which it can set off against the GST due on its own outward supplies. Section 16 of the CGST Act, 2017 sets the conditions, and section 17 sets apportionment for mixed use and the blocked credits.
Used in: GST Input Tax Credit Rules Explained (2026); Top GST Registration and Filing Services in India for Foreign Owned Businesses (2026)
An officer appointed under the Code on Wages, 2019 who inspects compliance and also guides employers. Before prosecution for a first lapse, section 54(3) requires the officer to give a written direction to comply within a set time. Prosecution follows only if the employer fails to comply.
Used in: New Labour Code 2026 and What Foreign Owned Companies Must Change; New Labour Code Salary Structure and the 50 Percent Wage Rule in 2026
The XBRL file that holds a company's tagged financial data for one set of financial statements. A company prepares one for its standalone statements and a separate one for its consolidated statements, validates each with MCA's tool, and attaches them to AOC-4 XBRL.
Used in: XBRL Filing in India and Which Companies Must File AOC-4 XBRL (2026)
IGST is the tax the Centre levies on inter state supplies and imports under the Integrated Goods and Services Tax Act, 2017. Under section 49A of the CGST Act and rule 88A of the CGST Rules, IGST credit must be used in full, against IGST first and then central or state tax, before central or state tax credit is used.
Used in: GST Input Tax Credit Rules Explained (2026); LUT Filing for Exporters Under GST: Guide (2026)
The board under the DPIIT startup notification that certifies an eligible business for the startup tax holiday. Its members are the Joint Secretary, DPIIT as convener and representatives of the Department of Biotechnology and the Department of Science and Technology. Startups apply to it in Form 1.
Used in: DPIIT Recognition for a Foreign Owned Startup in India (2026)
The written contract between group companies, such as a US parent and its Indian subsidiary, that sets the scope of services, each party's responsibilities, the pricing mechanism and payment terms. Transfer pricing documentation under rule 84 of the Income Tax Rules, 2026 (old rule 10D) relies on it, so it should be signed before the first invoice.
Used in: Transfer Pricing Between US Parent and Indian Subsidiary
Under section 2(13) of the IGST Act, 2017, a person who arranges or facilitates a supply of goods, services or securities between two or more persons, other than one who supplies on his own account. A subsidiary that markets to the parent on its own account is treated differently from one that closes the parent's sales.
Used in: GST on Export of Services from India: Zero-Rated Rules & LUT
Profits transferred to the reserve account after payment of taxes. RBI's Master Direction on Foreign Investment lets a foreign owned or controlled Indian company use internal accruals, as well as funds brought from abroad, for downstream investment that counts as indirect foreign investment.
Used in: Downstream Investment Rules for FOCCs and Form DI in 2026 (FEMA)
The committee every employer of a workplace with 10 or more employees constitutes under section 4 of the POSH Act, 2013, which names it the Internal Complaints Committee. It has a senior woman presiding officer, at least two employee members and an external member, with at least half women, for a term of up to three years.
Used in: POSH Compliance Checklist for Foreign Owned Companies in India
An IBC is a Seychelles company formed under the International Business Companies Act, 2016, often used as a holding vehicle. When an IBC subscribes for shares in an Indian company, it is a person resident outside India under FEMA, so the Non Debt Instruments Rules, 2019 apply and the Indian company reports the issue in Form FC-GPR.
Used in: Company Registration in India from Seychelles: Process, Cost and Timeline (2026)
An order made under section 40 of the Copyright Act, 1957 that extends Indian copyright protection to works of nationals of, or first published in, countries that belong to the Berne Convention. It is why foreign works need no Indian registration to be protected.
Used in: Copyright Registration in India and Designs for Foreign Companies
A US federal law that lets the President regulate transactions during a declared national emergency. The US used it in 2025 for reciprocal and Russia linked tariffs. The Supreme Court ruled in Learning Resources, Inc. v. Trump that it does not authorise tariffs.
Used in: India US Trade Deal 2026: Tariffs and What It Means for US Groups
The unified regulator for financial products, services and institutions in India's international financial services centres, set up under the International Financial Services Centres Authority Act, 2019. Under section 13 of that Act it exercises, inside an IFSC, the powers of RBI, SEBI, IRDAI and PFRDA.
Used in: GIFT City IFSC for Foreign Companies in 2026: Who Sets Up and Why
A transaction between associated enterprises, at least one of them a non resident, covering goods, services, loans, guarantees or intangibles. Under the transfer pricing provisions of the Income Tax Act, it must be reported in the accountant's report whatever its value, because no minimum threshold applies.
Under paragraph 2 of the Employees' Provident Funds Scheme, 2026, an employee holding a non Indian passport working for a covered establishment in India, or an Indian employee who has worked or will work in an agreement country and is eligible for its benefits under that agreement. Nepalese and Bhutanese nationals count as Indian workers.
Used in: Employment Visa India 2026 for Foreign Employees and Directors; PF and ESI for Foreign Owned Companies and Expat Staff in 2026; Secondment of Employees to India with PE, GST and TDS Rules (2026); Social Security Agreement India 2026 and the Certificate of Coverage
An inverted duty structure exists where the GST rate on inputs is higher than the rate on the outward supply, so unused credit builds up. The first proviso to section 54(3) of the CGST Act, 2017 allows a refund of that credit, computed under rule 89(5) of the CGST Rules, which excludes input services and capital goods from the formula.
Used in: 57th GST Council Meeting Recommendations Explained (8 October 2026); GST Input Tax Credit Rules Explained (2026)
An investment whose sale or maturity proceeds cannot be sent out of India, under rule 2(ad) of the NDI Rules. NRIs and OCIs make such investments under Schedule IV. The investment counts as domestic, and proceeds go only to the investor's NRO account.
Used in: OCI Investment in India and OCI Directors in Indian Companies (2026)
The record an AD bank sends to the DGFT system for each trade receipt credited to an exporter, carrying a reference number, amount, currency, purpose code and the exporter's IEC. DGFT's eBRC FAQs say an eBRC cannot be generated without an IRM, and capital receipts such as share subscription money do not create one.
Used in: FIRC and eBRC for Export of Services from India in 2026
The Financial Reporting Council's auditing standard for audits of group financial statements, including the work of component auditors. It applies to audits of periods beginning on or after 15 Dec 2023. A UK group auditor uses it when it instructs the auditor of an Indian subsidiary.
Used in: Statutory Audit of a UK Subsidiary in India for the UK Parent (2026)
ITDREIN is the Income Tax Department Reporting Entity Identification Number, issued to an authorised dealer bank or other reporting entity that registers on the income tax portal. Banks quote it in their quarterly Form 147 statement of remittances under rule 220 of the Income Tax Rules, 2026, and Form 145 has an optional field for it.
Used in: Form 145 and 146 (Old 15CA and 15CB) for Foreign Remittances 2026
Income tax return form for companies other than those claiming exemption under section 11. An Indian Private Limited company owned by a foreign parent files it as a domestic company. A foreign company with taxable Indian income, such as a branch, also files it. Section 139(1) of the Income Tax Act, 1961 requires a return whatever the income.
Used in: ITR-6 for Foreign Owned Companies in 2026, Due Dates and Schedules
J
Japan's government owned policy finance bank. Article 11(4) of the India Japan DTAA lists it as a financial institution wholly owned by the Government of Japan, so interest it earns from India is exempt from Indian tax under Article 11(3).
Used in: India Japan DTAA for Companies with Dividend, Interest and FTS Rates
A company owned by two or more partners who share control of it. The Explanation to section 2(6) of the Companies Act, 2013 defines a joint venture as a joint arrangement where the parties with joint control have rights to its net assets.
Used in: Joint Venture Company in India with a Foreign Partner (2026)
K
Japan's joint stock company and its limited liability company, both under the Companies Act of Japan (Act No. 86 of 2005), that commonly act as the parent of an Indian subsidiary. The Indian filing needs evidence of the investment decision and the authorised signatory, and the two forms can have different approval and representation arrangements.
Used in: How to Register a Company in India from Japan: Cost & Timeline (2026)
A person who runs premises where foreigners stay, such as a boarding house, hostel, paying guest house, home stay or rented accommodation, as rule 17(7)(a) of the Immigration and Foreigners Rules, 2025 describes. Section 8 of the 2025 Act requires the keeper to report each foreigner to the Registration Officer.
Used in: FRRO Registration 2026 for Foreign Employees, Steps and Deadlines
Under section 2(51) of the Companies Act, 2013, the chief executive officer, managing director or manager, the company secretary, the whole time director, the chief financial officer and certain designated officers. A KMP is always an officer who is in default under section 2(60).
Used in: Resident Director in India and the Section 149(3) 182 Day Rule (2026); Virtual CFO Services Cost in India (2026)
L
The fee RBI charges to regularise a FEMA report filed late, within three years of its due date. Annual returns such as the FLA return and Form APR pay a flat INR 7,500. Reports of flows, such as Form FC-GPR or the overseas investment Form FC, pay INR 7,500 plus 0.025 percent of the amount for each year of delay.
Used in: Annual Performance Report (APR) for Overseas Investment in 2026; Best FEMA Consultants in India (2026): How Foreign Founders Should Choose; FC-GPR Compounding in 2026 and What RBI Charged for Late Filings; FC-GPR Compounding with RBI: 2026 FEMA Guide; FC-GPR Filing 2026: 30 Day Deadline, FIRMS Steps and 10 more
A licence to use premises without creating a lease or tenancy, common for Indian offices. Each state's stamp law sets the stamp duty on it, and the Registration Act, 1908 governs registration. In Maharashtra, the Maharashtra Rent Control Act, 1999 also governs these agreements.
Used in: Best City in India for a Tech Company in 2026: Four Hubs Compared
A 20 character alphanumeric code under the ISO 17442 standard that identifies one legal entity in financial transactions worldwide. In India, RBI directions require it for large cross border transactions under FEMA, large borrowers, OTC derivatives, money and forex markets, and RTGS or NEFT payments of INR 50 crore or more.
Used in: LEI Registration in India for Cross Border Payments and Loans (2026)
The LEI issuer in India that RBI recognises as an issuer under the Payment and Settlement Systems Act, 2007. RBI's directions name it as the Indian source of LEIs, and it issues and renews LEIs for Indian entities.
Used in: LEI Registration in India for Cross Border Payments and Loans (2026)
Registration under the Legal Metrology Act, 2009 and the Legal Metrology (Packaged Commodities) Rules, 2011 that a manufacturer, packer or importer of pre packaged goods obtains before selling them. Each package must carry the declarations the rules require, such as net quantity, maximum retail price and the manufacturer's details.
Used in: Manufacturing Company Registration in India for Foreign Parents (2026)
The approval in Form G that the Development Commissioner issues under rule 19 of the SEZ Rules, 2006 to set up an SEZ unit. It lists permitted items and services, projected exports and net foreign exchange for five years. It is valid one year to start production, then five years from commencement.
Used in: SEZ in India 2026: Setting Up an SEZ Unit as a Foreign Company
An undertaking from a parent or group company that meets the profit and net worth tests in FEMA 22(R)/2016-RB, given for a liaison or branch office applicant that fails them. The parent agrees to fund the Indian office and meet any liability the office cannot. RBI's FAQs bar an Indian parent from giving one.
Used in: Branch Office in India 2026 with RBI Rules, Tax Rate and Project Office; Liaison Office in India in 2026 with RBI Rules, AAC and Form 162
The undertaking in Form RFD-11 under rule 96A of the CGST Rules, 2017 that lets an exporter supply goods or services without paying IGST. It is filed for each financial year. If payment for an exported service does not arrive within the allowed time, the exporter pays the IGST with interest under section 50(1).
Used in: 57th GST Council Meeting Recommendations Explained (8 October 2026); Export Realisation Period Under FEMA for Goods and Services (2026); FIRC and eBRC for Export of Services from India in 2026; Global Capability Centre India 2026 Guide to Structure, Tax and Compliance; GST on Export of Services from India: Zero-Rated Rules & LUT and 8 more
The relationship data in the Global LEI System that records who owns whom, meaning an entity's direct and ultimate accounting parent. A foreign owned Indian subsidiary reports its parent here when it registers its LEI and keeps it current, or gives a reason for not reporting.
Used in: LEI Registration in India for Cross Border Payments and Loans (2026)
A liaison office is a representative office of a foreign company in India, set up under FEMA 22(R)/2016-RB with AD Category I bank approval. It may only represent the parent, promote its business and collect information. It cannot earn income in India, and it files an annual activity certificate with its bank and Form 162 with the tax department.
Used in: Company Registration in India from Australia; Company Registration in India from the Netherlands: Process, Cost and Timeline (2026); Dubai to India Company Registration: UAE Parent Documents; India Entry Strategy for Foreign Companies (2026); Liaison Office in India in 2026 with RBI Rules, AAC and Form 162 and 1 more
The scheme under which a resident individual may remit up to USD 250,000 a financial year for permitted current or capital account purposes, under the RBI Master Direction on LRS. Since A.P. (DIR Series) Circular No. 50 of 11 Feb 2016, banks report LRS items under the regular FETERS purpose codes.
Used in: Purpose Code P0802 and RBI Purpose Codes for Foreign Remittances 2026; RSU vs ESOP Tax in India 2026 for Employees of a Foreign Parent
A treaty rule that denies a benefit to a shell or conduit company. Article 24A of the India Singapore DTAA denies the grandfathered exemption on shares acquired before 1 Apr 2017 where affairs were arranged with the primary purpose of taking it, or where Singapore operating spend is below SGD 200,000 in a test period.
Used in: GAAR in India for Foreign Companies and Holding Structures (2026); India Singapore DTAA for Companies in 2026 with Rates, LOB and PPT; India US DTAA for Companies in 2026 with Rates, FIS, LOB and PE; Tiger Global Case 2026, Treaty Shopping and Mauritius Investors
An LLP is a body corporate under the Limited Liability Partnership Act, 2008, in which partners' liability is limited to their agreed contribution. It needs at least two designated partners, one of them resident in India. FDI in an LLP is allowed under the automatic route only in sectors open to 100 percent automatic FDI with no performance conditions.
Used in: FDI in LLP in India 2026, Rules for Foreign Partners and Reporting; UK Ltd vs India Private Limited Structure (2026); US LLC vs India Private Limited: Can a US LLC Do Business in India? (2026)
An LRN is the number allotted to an external commercial borrowing through the borrower's AD bank before drawdown, under the FEMA borrowing and lending regulations. It identifies the loan in all later reporting. A parent loan drawn without one is a FEMA gap to fix through the AD bank or RBI compounding.
Used in: CHG-1 Form for Registering a Charge on Loans to an Indian Company; Conversion of Loan into Equity in an Indian Subsidiary (2026); DPT-3 Return of Deposits 2026 for Foreign Owned Companies in India; External Commercial Borrowing from a Foreign Parent in India (2026); Late Submission Fee Under FEMA in 2026 with Formula and Examples and 1 more
The district committee constituted by the District Officer under section 6 of the POSH Act, 2013. It hears complaints from workplaces with fewer than 10 workers, and complaints made against the employer.
Used in: POSH Compliance Checklist for Foreign Owned Companies in India
The transfer pricing documentation an Indian entity keeps, but does not file, to show that its transactions with associated enterprises are at arm's length. Section 171(1) of the Income Tax Act, 2025 and rule 84 of the Income Tax Rules, 2026 (old rule 10D) govern it. Full documentation applies above INR 1 crore of international transactions.
Used in: Controlling Your Indian Subsidiary: Reporting, Audit and Costs (2026); Master File and CbCR Requirements in India (2026), Forms 56 to 60; Transfer Pricing Documentation Requirements in India
The boundary of the city, town or village where a company's registered office sits, used by section 12(5) of the Companies Act, 2013. A move inside these limits needs only a board decision and Form INC-22. A move outside them needs a special resolution.
Used in: Change of Registered Office in India Within or Across States (2026)
An organisation accredited by the Global Legal Entity Identifier Foundation to issue and renew LEIs. RBI circulars let Indian entities obtain an LEI from any accredited LOU. GLEIF now calls these organisations LEI issuers.
Used in: LEI Registration in India for Cross Border Payments and Loans (2026)
The international classification for industrial designs published by WIPO, which India applies in its current edition under rule 10 of the Designs Rules, 2001, as amended in 2021. It has 32 classes, and each Indian design application covers one class.
Used in: Copyright Registration in India and Designs for Foreign Companies
Support services that one group member performs for another and that are not core to the group, use or create no unique intangibles, carry no significant risk, have no reliable external comparables, and are not shareholder or duplicate services. Rule 86(k) of the Income Tax Rules, 2026 defines them for the safe harbour.
Used in: Management Fees Transfer Pricing and What Indian Courts Accept
M
The WIPO administered system for international trade mark registration, which India joined in 2013. Chapter IVA of the Trade Marks Act, 1999 gives it effect. A foreign holder can designate India in an international application, and an Indian applicant can file one through the Indian Trade Marks Registry as office of origin.
Used in: Top Trademark Registration Services in India (2026)
A request, made in an international application filed through the applicant's home office with WIPO, to extend an international registration to India. Chapter IVA of the Trade Marks Act, 1999 (sections 36A to 36G) governs how the Trade Marks Registry examines and protects such registrations.
Used in: Trademark Registration for a Foreign Company in India (2026)
Under the Companies (Significant Beneficial Owners) Rules, 2018, a majority stake means holding more than one half of a body corporate's equity share capital or voting rights, or a right to more than half of its distributions. An individual with a majority stake in a member, or in its ultimate holding company, is treated as holding that member's whole stake.
Used in: BEN-2 and Significant Beneficial Owners with a Foreign Parent (2026)
A make available clause appears in some Indian tax treaties, including those with the United States, the United Kingdom and Singapore. Fees for technical services are taxable in India only if the service makes technical knowledge, skill or know how available to the recipient, so that it can use it independently afterwards.
Used in: India Australia DTAA for Companies with Rates, 2022 Change and ECTA; India France DTAA for Companies with Withholding Rates and MFN; Repatriation of Profits from India to a Foreign Parent (2026)
An internal report that compares results with budget and shows cash, receivables, headcount and KPIs. No Indian law prescribes its format. The books behind it must meet section 128 of the Companies Act, 2013, which requires accrual accounting and double entry. The statutory auditor audits the annual financial statements, not the MIS.
Used in: MIS Report Format for an Indian Subsidiary of a Foreign Parent (2026)
The auditor's letter to management listing weaknesses found in internal controls, records and compliance during the statutory audit. Unlike the audit report under section 143 of the Companies Act, 2013, it is not filed with the Registrar, so a foreign parent should ask for it each year and track every finding to closure.
Used in: Controlling Your Indian Subsidiary: Reporting, Audit and Costs (2026)
Group level transfer pricing information on the international group's business, intangibles, financing and pricing policies, filed in Form 56 under the Income Tax Rules, 2026. Part A applies to every constituent entity of an international group. Part B applies where group revenue exceeds INR 500 crore and international transactions exceed INR 50 crore, or INR 10 crore for intangibles.
Used in: Master File and CbCR Requirements in India (2026), Forms 56 to 60; Transfer Pricing Documentation Requirements in India
The excess of MAT paid over normal tax in a year up to 31 Mar 2026, carried forward under old section 115JAA and section 536(2)(l) of the Income Tax Act, 2025. It lapses after fifteen years and no new credit arises from tax year 2026-27.
Used in: Minimum Alternate Tax in India for Foreign Companies and Subsidiaries
The MCA e stamp schedule is the Ministry of Corporate Affairs table of state stamp duty on the memorandum, the articles, the incorporation form and Form SH-7. MCA21 collects this duty in the filing challan. Some state schedules have changed since MCA published it.
Used in: Company Registration Fees in India 2026: Every Government Charge
The charter document of an Indian company under section 4 of the Companies Act, 2013. It states the company's name, the State of its registered office, its objects, the liability of members and its share capital, in the form set by Tables A to E of Schedule I.
Used in: Memorandum of Association and Articles for a Foreign Owned Subsidiary
The statement of facts and reasons that accompanies a compounding application to the Reserve Bank of India under the Foreign Exchange (Compounding Proceedings) Rules, 2024. It sets out the contravention and why it happened, with annexures such as the filed form, board resolution, FIRC and KYC documents.
Amounts a company owes to suppliers registered as micro or small enterprises under the MSMED Act, 2006. Schedule III shows them separately within trade payables, and section 22 of that Act requires notes on unpaid principal, interest paid and interest still due.
Used in: Schedule III Companies Act Format and Key Disclosures in 2026
A state level council set up under section 20 of the MSMED Act, 2006 that decides delayed payment disputes by conciliation and then arbitration under section 18. A supplier applies through the MSME Samadhaan portal, and a buyer must deposit 75 percent of the award before challenging it under section 19.
Used in: MSME Form 1 Due Date 2026 and the 45 Day Payment Rule for Companies
A supplier classified as a micro or small enterprise under the MSMED Act, 2006 and registered on the Udyam portal. A buyer must pay it within the section 15 time limit of 45 days at most, or defer the tax deduction to the year of payment under section 37(2)(g) of the Income Tax Act, 2025.
Used in: Year End Closing Checklist for an Indian Subsidiary at 31 March
Section 7 of the Micro, Small and Medium Enterprises Development Act, 2006 classifies an enterprise by investment in plant and machinery or equipment and by turnover. After the 2025 revision, micro means up to INR 2.5 crore and INR 10 crore, small INR 25 crore and INR 100 crore, and medium INR 125 crore and INR 500 crore.
Used in: Udyam Registration for Foreign-Owned Companies in India (2026 Guide)
Tax on book profit that a company in the normal regime pays when its normal tax is lower, under section 115JB of the Income Tax Act, 1961 and section 206 of the Income Tax Act, 2025. The rate is 15 percent for FY 2025-26 and 14 percent from tax year 2026-27. MAT credit carries forward for 15 years.
Used in: Budget 2026 Changes for Foreign Owned Companies and Non Residents; Form 67 and Foreign Tax Credit in India for Companies (2026); Income Tax Act 2025 Changes for Foreign Owned Companies in India; ITR-6 for Foreign Owned Companies in 2026, Due Dates and Schedules; Minimum Alternate Tax in India for Foreign Companies and Subsidiaries
The shortest average life an ECB must have. Schedule I paragraph 6 of the Borrowing and Lending Regulations sets it at three years, with a one to three year option for manufacturing borrowers up to USD 150 million. Paragraph 6(4) lifts it for a conversion into non debt instruments, a waiver by the lender and some other exits.
Used in: Conversion of Loan into Equity in an Indian Subsidiary (2026); External Commercial Borrowing from a Foreign Parent in India (2026)
The prescribed transfer pricing method that gives the most reliable arm's length price for a transaction, given its nature, the functions performed and the data available. The taxpayer selects it and the accountant reports it. The prescribed methods include CUP, TNMM and cost plus.
A clause, usually in a DTAA protocol, promising a treaty partner any lower withholding rate India later gives another country. After the Supreme Court ruling in Nestle SA (19 Oct 2023), India applies such a rate only once the Government notifies it under section 90 of the Income Tax Act, 1961, now section 159 of the Income Tax Act, 2025.
Used in: Dividend Declaration by an Indian Subsidiary to Its Foreign Parent; India EFTA TEPA 2026: What Swiss and Norwegian Investors Should Know; India France DTAA for Companies with Withholding Rates and MFN; India Germany DTAA for Companies in 2026 with Rates and PE Rules; India Netherlands DTAA for Companies in 2026 with Rates and MFN and 1 more
A half yearly return a company files with the Registrar of Companies under section 405 of the Companies Act, 2013 and the 2019 Order as amended in 2024. It reports dues to micro and small suppliers pending beyond 45 days from acceptance. It is due by 31 October and 30 April, and no nil return is needed.
Used in: MSME Form 1 Due Date 2026 and the 45 Day Payment Rule for Companies
The MLI is the OECD convention that changes existing tax treaties to put in place measures against base erosion and profit shifting. India has signed and ratified it. Article 4(1) of the MLI replaces the tie breaker for a dual resident company with mutual agreement between the tax authorities, in treaties where both countries adopted it, such as India UK.
Used in: India Canada DTAA for Companies in 2026 with Rates, FIS and PE Rules; India Germany DTAA for Companies in 2026 with Rates and PE Rules; India Netherlands DTAA for Companies in 2026 with Rates and MFN; India Singapore DTAA for Companies in 2026 with Rates, LOB and PPT; India UK DTAA for Companies in 2026 with Rates and Article Guide and 1 more
An agreement under which two customs administrations recognise each other's AEO programmes and give reciprocal facilitation to each other's certified operators. A partner's certification of a foreign parent does not make the Indian subsidiary an AEO in India.
Used in: Authorised Economic Operator in India 2026: AEO Tiers and Benefits
N
Name reservation is the first step of incorporation, filed through RUN or SPICe+ Part A for ₹1,000 per application. An approved name is valid for 20 days, and a defective application can be resubmitted within 15 days.
Used in: Company Registration Fees in India 2026: Every Government Charge
The audit regulator constituted on 1 Oct 2018 under section 132 of the Companies Act, 2013. It recommends auditing standards and oversees the auditors of the companies listed in rule 3 of the NFRA Rules, 2018, such as listed companies and large unlisted public companies.
Used in: Auditor of an Indian Subsidiary and the Parent's Global Audit Firm
Guidelines issued by the Ministry of Corporate Affairs that set nine principles of responsible business conduct, from ethics and product safety to inclusive growth and consumer engagement. The BRSR format organises its Section C disclosures around these nine principles.
Used in: BRSR Reporting in India and Foreign Owned Subsidiaries (2026)
A National Industrial Classification code is the code from the Ministry of Statistics and Programme Implementation that classifies an economic activity. An enterprise picks the NIC codes for its manufacturing, services or trading activities on the Udyam portal, and lenders and tender portals read them, so they should match its invoices.
The Government of India portal at nsws.gov.in through which investors and businesses apply for central and state approvals. DPIIT startup recognition is applied for on NSWS as the "Registration as a Startup" approval, using the entity's own login, mobile number and email.
Used in: DPIIT Recognition for a Foreign Owned Startup in India (2026)
The test under rule 53 of the SEZ Rules, 2006 that an SEZ unit's foreign exchange inflow from exports exceeds its outflow on imports, domestic inputs and amortised capital goods. It is computed cumulatively over five years from commencement of production and reported in the Annual Performance Report.
Used in: SEZ in India 2026: Setting Up an SEZ Unit as a Foreign Company
In rule 89(4) of the CGST Rules, 2017, the input tax credit availed on inputs and input services during the period of the refund claim. Credit on capital goods is outside it, so it is not refunded under the formula.
Used in: GST Refund for Exporters of Services Under LUT with RFD-01 (2026)
Paid up share capital plus reserves created out of profits, securities premium and the profit and loss balance, less accumulated losses, deferred expenditure and miscellaneous expenditure not written off, as per the audited balance sheet. It excludes revaluation, depreciation write back and amalgamation reserves.
Used in: Ind AS Applicability for a Foreign Owned Private Company in 2026
The international system of 45 classes of goods (1 to 34) and services (35 to 45) that the Trade Marks Registry follows under section 7 of the Trade Marks Act, 1999. Protection is granted per class, so a business selling a product and a related service usually files in at least two classes.
Used in: Top Trademark Registration Services in India (2026)
A nominee director is a director appointed to represent a parent or investor, often a local professional who also meets the resident director rule. Indian law creates no class of director with reduced duties. The duties in section 166 of the Companies Act, 2013 apply in full, and a private agreement with the parent cannot remove them.
Used in: Company Registration in India from Uzbekistan: Process, Cost and Timeline (2026); Resident Director in India and the Section 149(3) 182 Day Rule (2026)
A nominee shareholder holds shares in an Indian company on behalf of a foreign parent, so that a private company meets the two member minimum in section 3 of the Companies Act, 2013. The nominee files Form MGT-4, the parent files MGT-5, and the company reports the beneficial interest to the Registrar in Form MGT-6 under section 89.
Used in: Company Registration in India from Belgium: Process, Cost and Timeline (2026); Company Registration in India from Italy: Process, Cost and Timeline (2026); Company Registration in India from South Africa: Process, Cost and Timeline (2026); Company Registration in India from Uruguay: Process, Cost and Timeline (2026); How to Register a Company in India from Germany: Cost & Timeline (2026) and 2 more
An individual resident outside India who is a citizen of India, as defined in rule 2(aj) of the Foreign Exchange Management (Non Debt Instruments) Rules, 2019. NRIs and OCIs share the same investment routes, including Schedule IV, which only they and entities they own and control can use. NRIs remain Indian citizens.
Used in: OCI Investment in India and OCI Directors in Indian Companies (2026)
Section 2(77) of the CGST Act, 2017 defines a non resident taxable person as someone who occasionally makes taxable supplies in India without a fixed place of business or residence here. Section 24 requires registration whatever the turnover, and the registration is valid for 90 days unless extended.
Under section 2(16) of the IGST Act, any unregistered person in India who receives OIDAR services. The term includes a person registered only to deduct tax at source under section 51 of the CGST Act, such as many government offices.
Used in: OIDAR Services GST in India for Foreign SaaS Companies (2026)
Certification by a notary public of a signature, copy or document, usually the first step before an apostille or consular legalisation for private papers such as board resolutions. Under the Companies (Incorporation) Rules, 2014, a foreign subscriber's signature and identity proof are notarised abroad; for a subscriber in a Commonwealth country, notarisation alone is enough.
Used in: Apostille or Notarisation for Company Registration in India; Choosing an India Registration Service for Foreign Founders; Company Registration in India for British Citizens; Company Registration in India from Bangladesh: Process, Cost and Timeline (2026); Company Registration in India from Botswana: Process, Cost and Timeline (2026) and 25 more
The replacement of one party to a contract with another, with the consent of everyone involved. When a branch moves its business to a subsidiary, each customer, vendor and lease contract is novated or signed afresh with the subsidiary.
Used in: Converting a Branch or Liaison Office into an Indian Subsidiary
A separate login on the income tax portal for a non resident that holds no PAN and is not required to have one. Such filers use it to submit Form 41 under rule 75(1) of the Income Tax Rules, 2026 and verify it by one time passwords sent to the registered email and mobile, instead of EVC or a DSC.
Used in: Form 10F and Tax Residency Certificate in India for Non Residents (2026)
A Non Resident (External) rupee account that NRIs and persons of Indian origin, including OCI cardholders, may hold under RBI's Master Direction on Deposits and Accounts. Balances are freely repatriable, and the account can fund investments under Schedules I, III and IV of the NDI Rules.
Used in: OCI Investment in India and OCI Directors in Indian Companies (2026)
O
The Russian limited liability company under Federal Law No. 14-FZ, one of two common Russian parent entities, the other being the joint stock company (AO) under Federal Law No. 208-FZ. The Indian filing needs the parent's registration evidence, governing documents, investment approval and signatory authority, certified and translated as the bank and filing professional require.
Any office in a company that carries remuneration, salary, fees, commission, perquisites or rent free accommodation, as described in Explanation (a) to section 188 of the Companies Act, 2013. Appointing a related party to one needs members' approval where monthly pay exceeds INR 2,50,000.
Used in: Related Party Transactions Under Section 188 for an Indian Subsidiary
The class of officers that section 2(60) of the Companies Act, 2013 makes liable for a company's default. It covers whole time directors, key managerial personnel, directors the board specifies (all directors if there is no key managerial personnel and none is specified), and any director who knew of the contravention through board proceedings without objecting, or consented to it.
Used in: INC-20A Commencement of Business for a Foreign Subsidiary in 2026; Resident Director in India and the Section 149(3) 182 Day Rule (2026); Significant Beneficial Owner Case on LinkedIn India and Group CEOs
An identity and address document a bank may accept for KYC under the PML Rules, such as a passport or driving licence. For a foreign national whose OVD has no address, RBI's KYC Directions let the bank accept a foreign government document or a letter from the foreign mission in India.
Used in: Bank Account for a Foreign Subsidiary in India, KYC and Timeline 2026
A private company with a single member, defined in section 2(62) of the Companies Act, 2013. Under the Companies (Incorporation) Rules, 2014, only a natural person who is an Indian citizen, resident in India or not, can form one, so a foreign national or a foreign company cannot use this structure.
A multi year CSR project with a timeline of up to three years, not counting the financial year in which it starts, under rule 2(1)(i) of the Companies (CSR Policy) Rules, 2014. A one year project that the board extends with reasonable justification also qualifies.
Used in: CSR Applicability for Foreign Owned Companies in India (2026)
Section 2(17) of the IGST Act, 2017 defines OIDAR services as services delivered over the internet or an electronic network whose supply is essentially automated, involves minimal human intervention and is impossible without information technology. Examples are cloud storage, online software and streaming.
Used in: Equalisation Levy in India, Its Abolition and What Now Applies; GST Registration for Foreign Companies in India; OIDAR Services GST in India for Foreign SaaS Companies (2026)
The full value in money, excluding GST, that an unrelated buyer would pay for the same supply at the same time, where price is the only consideration. The Explanation after rule 35 of the CGST Rules defines it for the valuation rules.
Used in: GST on Related Party Transactions and Cross Charges in India (2026)
A term that lets a foreign investor exit through a put or call option. Paragraph 4.8 of the RBI Master Direction on Foreign Investment allows it in an equity instrument after a minimum lock in of one year, with no assured exit price and subject to the pricing guidelines.
Used in: CCD vs CCPS for Foreign Investors under the FDI Rules in India (2026)
A put or call option attached to shares held by a non resident. Rule 9(5) of the NDI Rules allows the exit only after a lock in of at least one year, without any assured return, at a price that meets the pricing guidelines.
Used in: Joint Venture Company in India with a Foreign Partner (2026)
A phrase in the fourth proviso to section 188(1) of the Companies Act, 2013 that the Act does not define. In practice it means a transaction that falls within the company's objects and actual business, recurs on normal terms, and fits the company's usual volumes.
Used in: Related Party Transactions Under Section 188 for an Indian Subsidiary
The Paris based body of member countries whose membership triggers the MFN clauses in India's treaties with the Netherlands, France and Switzerland. After the Nestle ruling, the relevant test is membership on the date the third country signed its treaty with India.
Used in: MFN Clause in India's DTAAs After the Nestle Ruling, Our View (2026)
The registration that section 3 of the Occupational Safety, Health and Working Conditions Code, 2020 requires once an establishment employs ten or more workers. The employer applies electronically within 60 days of the Code applying to it.
Used in: Shops and Establishment and Professional Tax for New Companies
The record an AD bank creates in IDPMS for each outward payment against an import, including advances. The bank closes the ORM when it matches it with a bill of entry or service invoice, or when it closes the entry on a permitted reason such as repatriation.
Used in: Advance Remittance for Import Under FEMA, Limits and IDPMS (2026)
A derivative contract, such as a forex forward, currency swap or interest rate swap, that two parties agree directly instead of on an exchange. RBI has required non individual participants in OTC rupee interest rate, foreign currency and credit derivatives to hold an LEI since its 1 Jun 2017 circular.
Used in: LEI Registration in India for Cross Border Payments and Loans (2026)
A foreign citizen of Indian origin, or the spouse of an Indian citizen, who holds an OCI card under section 7A of the Citizenship Act, 1955, giving a lifelong, multiple entry, multi purpose visa. An OCI founder needs no business visa. Tax residence still follows the day count in section 6 of the Income Tax Act, 2025.
Used in: Business Visa India 2026 for Foreign Founders and Board Directors; Employment Visa India 2026 for Foreign Employees and Directors; OCI Investment in India and OCI Directors in Indian Companies (2026)
Investment by a person resident in India in the unlisted equity capital of a foreign entity, in 10 percent or more of a listed foreign entity's paid up equity, or in a smaller listed stake that comes with control. The Foreign Exchange Management (Overseas Investment) Rules, 2022 define it, and an investment that counts as ODI stays ODI.
Used in: Annual Performance Report (APR) for Overseas Investment in 2026; ODI Rules 2022 for Indian Companies Investing Abroad in 2026; Reverse Flip to India for US and Singapore Holding Companies (2026); Singapore to India Company Registration: Parent Company Guide
Investment by a person resident in India in foreign securities that is not ODI, such as a listed stake below 10 percent without control. Schedule II to the Overseas Investment Rules, 2022 caps an Indian entity's OPI at 50 percent of its net worth, and an unlisted Indian entity may make OPI only in limited cases.
Used in: ODI Rules 2022 for Indian Companies Investing Abroad in 2026
Work beyond the daily or weekly hours that the appropriate government prescribes under section 27 of the OSH Code, 2020. It needs the worker's consent and earns twice the rate of wages, computed daily or weekly, whichever is more favourable to the worker.
Used in: Working Hours Under the Labour Code with Overtime and Leave in 2026
P
Under section 2(64) of the Companies Act, 2013, the amount credited as paid up on shares issued, equal to the amount received as paid up. It excludes other amounts received on those shares, such as securities premium.
Used in: How Much Authorised Capital a Foreign Subsidiary Needs: Our View; XBRL Filing in India and Which Companies Must File AOC-4 XBRL (2026)
For the POEM test in CBDT Circular No. 6 of 2017, passive income is income from transactions where both purchase and sale are with associated enterprises, plus royalty, dividend, capital gains, interest and rental income. Interest is not passive for a bank or public financial institution. Passive income above 50 percent of total income fails the active business test.
Used in: Place of Effective Management (POEM) in India for Foreign Companies
The accounting charge that arises when a change in law or plan terms raises the value of benefits already earned. Under AS 15 or Ind AS 19, a subsidiary may book it when gratuity moves to the new Code wage base.
Used in: Gratuity Rules 2026 for Fixed Term Employees and the One Year Rule
The step that turns an international application under the Patent Cooperation Treaty into an Indian application, under section 7(1A) of the Patents Act, 1970 and rule 20 of the Patents Rules, 2003. It is filed on Form 1 within 31 months of the priority date.
Used in: Patent Filing in India for Foreign Companies, PCT and Form 27
PAN is the ten character alphanumeric tax identity that the Income Tax Department issues to each taxpayer, including companies and foreign individuals with Indian income. A new Indian company receives its PAN through SPICe+ along with its certificate of incorporation. Banks, GST registration and every income tax filing need it.
Used in: Company Registration in India from Mexico; Form 49AA in 2026 and PAN for Foreign Companies (Now Form 96)
A permanent establishment is a fixed place of business, a long running project or a dependent agent through which a foreign company carries on business in India, as defined in Article 5 of each Indian tax treaty. India taxes the business profits attributable to a PE through a return, at 35 percent plus surcharge and cess for a foreign company.
Used in: Branch Office in India 2026 with RBI Rules, Tax Rate and Project Office; Business Visa India 2026 for Foreign Founders and Board Directors; Corporate Tax Rate in India for Foreign Companies: 35%+; Cross-Border Tax Advisory in India: PE Risk, Withholding, Fees (2026); Employer of Record vs Subsidiary in India for Foreign Companies (2026) and 24 more
A benefit an employer gives beyond cash pay, taxed as salary. Under section 17(1)(d) of the Income Tax Act, 2025, shares or options that the employer allots directly or indirectly are a perquisite, valued at fair market value on allotment less any price the employee paid.
Used in: RSU vs ESOP Tax in India 2026 for Employees of a Foreign Parent
The clause of the Income Tax Act, 2025 that taxes as salary the value of specified securities or sweat equity shares an employer allots free or at a concessional rate. Section 17(4)(h) values it at fair market value less the amount the employee paid, using the method in rule 15 of the Income Tax Rules, 2026.
Used in: Sweat Equity Shares in India for Private and Foreign Owned Companies
An individual who, or either of whose parents or any of whose grandparents, was born in undivided India, under section 2(78) of the Income Tax Act, 2025. Such a person visiting India gets the relaxed residence tests in section 6(4) and 6(5).
Used in: OCI Investment in India and OCI Directors in Indian Companies (2026)
Section 2(v) of the Foreign Exchange Management Act, 1999 defines a person resident in India. It includes any company or body corporate registered or incorporated in India, whoever owns it, and an office, branch or agency in India owned or controlled by a person resident outside India. A foreign owned Indian subsidiary is therefore resident for FEMA purposes.
Used in: EEFC Account for Foreign Owned Companies and Exporters in India (2026); OCI Investment in India and OCI Directors in Indian Companies (2026)
Section 2(w) of the Foreign Exchange Management Act, 1999 defines a person resident outside India as anyone who is not a person resident in India under section 2(v). A foreign company or foreign individual buying shares in an Indian company falls in this class, so the Non Debt Instruments Rules, 2019 and FEMA reporting apply.
Used in: Budget 2026 Changes for Foreign Owned Companies and Non Residents; Company Registration in India from Paraguay: Process, Cost and Timeline (2026); India Company Setup for Mexico Based Founders; US LLC to Indian Subsidiary: Structure and Registration
Any unauthorised processing, or accidental disclosure, acquisition, sharing, use, alteration, destruction or loss of access to personal data that compromises its confidentiality, integrity or availability, under section 2(u) of the Digital Personal Data Protection Act, 2023.
Used in: DPDP Rules 2025 Compliance Timeline for Foreign Companies in India
A licence from PESO, which sits under the Department for Promotion of Industry and Internal Trade, for storing and handling flammables, compressed gases and explosives precursors under the Explosives Act, 1884, the Petroleum Act, 1934 and related rules. A chemical plant that holds such substances needs one.
Used in: Chemical Company Registration in India for Foreign Investors (2026)
Physical verification is a visit by the Registrar to check that a company's registered office exists and can receive communications. Section 12(9) and rule 25B allow it, and a failed check can lead to strike off.
Used in: Registered Office Address Proof for a New Company in India
Applying a registered design, or a fraudulent or obvious imitation of it, to an article for sale without the proprietor's consent, or importing or selling such articles, under section 22 of the Designs Act, 2000. The owner can recover damages or a fixed sum per contravention.
Used in: Copyright Registration in India and Designs for Foreign Companies
POEM is the place where key management and commercial decisions necessary for a company's business as a whole are, in substance, made. Section 6(10) of the Income Tax Act, 2025 treats a foreign company as resident in India for a tax year if its POEM is in India that year. CBDT Circular No. 6 of 2017 sets the tests.
Used in: India US DTAA for Companies in 2026 with Rates, FIS, LOB and PE; Place of Effective Management (POEM) in India for Foreign Companies
The place of supply decides whether a supply is taxed in India. Sections 10 to 13 of the IGST Act, 2017 set it, and section 13 covers services where the supplier or the recipient is outside India. A service supplied from India to a recipient abroad is an export only if its place of supply is outside India.
The common name for the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (Act 14 of 2013), in force from 9 Dec 2013. It requires employers to prevent sexual harassment of women at work and to run a committee that inquires into complaints.
Used in: POSH Compliance Checklist for Foreign Owned Companies in India
The Reserve Bank of India's online portal for regulatory applications and references. Under A.P. (DIR Series) Circular No. 02 of 1 Apr 2026, FEMA references to the RBI's seven Regional Offices go through it, and an applicant files a compounding application there.
Used in: FEMA Compounding Application: Resolving Contraventions (2026)
A preferential allotment is an issue of shares to chosen persons rather than to all existing members, under section 62(1)(c) of the Companies Act, 2013. It needs a special resolution and a registered valuer's report. For an unlisted company it must also follow section 42, so the PAS-3 is due within 15 days.
Used in: PAS-3 Return of Allotment for Shares Issued to Foreign Investors; Private Placement of Shares to Foreign Investors under Section 42
The DPIIT press note of 15 Mar 2026 that rewrote paragraph 3.1.1 of the FDI Policy. It ties the beneficial owner test to the Prevention of Money Laundering Rules, keeps small non controlling land border stakes on the automatic route and adds a duty to report those stakes.
Used in: Press Note 3 Rules for FDI from Land Border Countries (2026)
A policy notification of the Department for Promotion of Industry and Internal Trade that requires government approval for foreign investment where the investor, or its beneficial owner, is an entity of or a citizen of a country sharing a land border with India. Press Note 2 (2026 Series) relaxes it for non controlling ownership of up to 10 percent.
Used in: Company Registration in India for Foreign Founders; Company Registration in India from Bangladesh: Process, Cost and Timeline (2026); Company Registration in India from China: Process, Cost and Timeline (2026); Company Registration in India from Hong Kong: Process, Cost and Timeline (2026); Company Registration in India from Nepal (2026) and 8 more
The regime in section 61 of the Income Tax Act, 2025 that deems a fixed share of gross receipts as profit for certain non resident businesses, such as shipping, aircraft, oil services and electronics manufacturing services. It replaces old sections 44B to 44BBD.
Used in: Budget 2026 Changes for Foreign Owned Companies and Non Residents
The financial year in which income was earned, under section 3 of the Income Tax Act, 1961. It still applies to income earned up to 31 Mar 2026. The Income Tax Act, 2025 replaces it with the tax year.
Used in: Tax Year Under the Income Tax Act, 2025 and the End of Assessment Year
Rule 21 of the Foreign Exchange Management (Non Debt Instruments) Rules, 2019 sets the price floor and ceiling for unlisted shares. A resident selling to a non resident must receive at least fair value. A non resident selling to a resident may receive at most fair value, certified by a Chartered Accountant, SEBI registered merchant banker or practising cost accountant.
Used in: Angel Tax Abolished in India and What Foreign Investors Still Face; Best FEMA Consultants in India (2026): How Foreign Founders Should Choose; Buyback of Shares by an Indian Subsidiary from a Foreign Parent (2026); CCD vs CCPS for Foreign Investors under the FDI Rules in India (2026); Company Registration in India from Austria: Process, Cost and Timeline (2026) and 14 more
The principal place of business is the main address a GST applicant declares in its registration. The GST portal asks for ownership, rent or consent documents for it, and it need not be the registered office.
Used in: Registered Office Address Proof for a New Company in India
The PPT is the anti abuse rule that the OECD Multilateral Instrument adds to covered Indian tax treaties. It denies a treaty benefit where obtaining it was one of the principal purposes of an arrangement, unless granting it matches the object and purpose of the treaty. CBDT Circular No. 01/2025 of 21 Jan 2025 guides officers on applying it.
Used in: Company Registration in India from Cyprus: Process, Cost and Timeline (2026); Company Registration in India from Luxembourg: Process, Cost and Timeline (2026); Corporate Tax Rate in India for Foreign Companies: 35%+; Form 10F and Tax Residency Certificate in India for Non Residents (2026); GAAR in India for Foreign Companies and Holding Structures (2026) and 12 more
Priority sector lending is the RBI requirement that banks direct a set share of their credit to named sectors, which include micro, small and medium enterprises. It is one of the main benefits of MSME status, alongside collateral free credit under credit guarantee schemes.
Used in: Udyam Registration for Foreign-Owned Companies in India (2026 Guide)
Section 2(68) of the Companies Act, 2013 defines a private company as one whose articles restrict share transfers, cap members at 200 and bar public offers of its securities. Section 3(1)(b) requires at least two members and section 149(1)(a) at least two directors, so a foreign parent usually uses a nominee for the second share.
Used in: Company Registration in India from Bahrain: Process, Cost and Timeline (2026); Company Registration in India from Belgium: Process, Cost and Timeline (2026); Company Registration in India from Indonesia: Process, Cost and Timeline (2026); Company Registration in India from Uzbekistan: Process, Cost and Timeline (2026)
A company under the Companies Act, 2013 that restricts the transfer of its shares and needs at least two members and two directors, one of whom meets the 182 day residence test in section 149(3). It can be wholly foreign owned where the sector and FDI entry route allow, and it is incorporated through SPICe+.
Used in: Company Registration in India from Argentina: Process, Cost and Timeline (2026); Company Registration in India from Maldives: Process, Cost and Timeline (2026)
A private placement is an offer of securities to identified persons, not the public, under section 42 of the Companies Act, 2013 and rule 14 of the Companies (Prospectus and Allotment of Securities) Rules, 2014. It needs a special resolution, a PAS-4 offer letter, at most 200 persons a year and a separate bank account.
Used in: PAS-3 Return of Allotment for Shares Issued to Foreign Investors; Private Placement of Shares to Foreign Investors under Section 42
The origin test set for a particular tariff heading or subheading in a trade agreement, such as a change in tariff heading, a cap on non originating materials or a specific process. In India the PSRs sit in an annexure to each FTA origin rules notification.
Used in: Rules of Origin in India 2026: CAROTAR 2020 Guide for FTA Importers
A central government scheme that pays an eligible company registered in India a percentage of its incremental sales of goods manufactured in India over a base year. Each sector has its own guidelines, outlay, thresholds and tenure, run by the ministry concerned and monitored by an Empowered Group of Secretaries.
Used in: PLI Scheme 2026: Manufacturing Incentives in India for Foreign Firms
A state tax on professions, trades, callings and employments, allowed by Article 276 of the Constitution and capped at INR 2,500 per person per year. Employers deduct it from salaries and pay it to the state under the state's own Act, such as Karnataka's 1976 Act.
Used in: Best City in India for a Tech Company in 2026: Four Hubs Compared; Shops and Establishment and Professional Tax for New Companies
The agency a ministry appoints to receive PLI applications and claims, check eligibility and recommend disbursement. The applicant files quarterly, half yearly or annual claims with the PMA, which verifies sales, investment and documents before the ministry releases the incentive.
Used in: PLI Scheme 2026: Manufacturing Incentives in India for Foreign Firms
A place of business that a foreign company sets up to execute a project awarded by an Indian company. Regulation 4(f) of FEMA 22(R)/2016-RB gives general permission when inward remittance, an international agency, a clearance or an Indian term loan funds the project, so no AD bank approval letter is needed.
Used in: Branch Office in India 2026 with RBI Rules, Tax Rate and Project Office
For an unlisted company, section 69(3) of the Income Tax Act, 2025 treats as a promoter anyone who is a promoter under section 2(69) of the Companies Act, 2013 or holds, directly or indirectly, more than 10 percent of the shares. Promoters pay additional tax on buyback gains.
Used in: Buyback of Shares by an Indian Subsidiary from a Foreign Parent (2026)
A person named as promoter in a prospectus or the annual return, a person with control over the company's affairs, or a person on whose advice the board usually acts, under section 2(69) of the Companies Act, 2013. A controlling foreign parent is usually a promoter.
Used in: Schedule III Companies Act Format and Key Disclosures in 2026
The document an Indian importer produces to claim a preferential FTA duty rate. Section 28DA of the Customs Act, 1962 defines it as a certificate or declaration issued in accordance with a trade agreement. It may come from an authority in the exporting country or from an eligible exporter, as each agreement allows.
Used in: Rules of Origin in India 2026: CAROTAR 2020 Guide for FTA Importers
A filing basis under rule 25 of the Trade Marks Rules, 2017 for a mark not yet used in India. If the applicant instead claims use before the filing date, it must file an affidavit of use with supporting documents.
Used in: Trademark Registration for a Foreign Company in India (2026)
The Botswana private company form whose name ends in (Pty) Ltd. It can act as the parent investor in an Indian subsidiary. The Indian filing then needs its registration evidence, governing documents, investment approval and signatory authority, certified and translated as the bank and filing professional require.
Used in: Company Registration in India from Botswana: Process, Cost and Timeline (2026)
A document signed with or after a tax treaty that adds to or amends its terms. In India a protocol changes the tax payable only once the Central Government notifies it, which the Supreme Court confirmed in AO v Nestle SA in 2023.
Used in: MFN Clause in India's DTAAs After the Nestle Ruling, Our View (2026)
The monthly wage limit up to which PF contributions are mandatory under the Code on Social Security, 2020. It rose from INR 15,000 to INR 25,000 a month on 17 Sep 2026 by S.O. 5109(E). Most establishments contribute 12 percent of wages from each side.
Used in: New Labour Code 2026 and What Foreign Owned Companies Must Change
A notice the Indian Trade Marks Registry sends to WIPO when it objects to an international registration designating India, or when someone opposes it. Under section 36E of the Trade Marks Act, 1999, India must send it within 18 months.
Used in: Trademark Registration for a Foreign Company in India (2026)
The two Maharashtra professional tax certificates. PTRC is the employer's registration certificate for tax deducted from salaries, and PTEC is the enrolment certificate for a person's own tax, such as a company's ₹2,500 a year.
Used in: Shops and Establishment and Professional Tax for New Companies
A supplier that pays a third party on the recipient's behalf under a written agreement and recovers the exact amount. Rule 33 of the CGST Rules excludes such recoveries from the supplier's taxable value when all its conditions are met.
Used in: GST on Related Party Transactions and Cross Charges in India (2026)
Q
A UAE free zone company that meets the conditions of Federal Decree Law No. 47 of 2022 and pays 0 percent UAE corporate tax on qualifying income and 9 percent on other taxable income. For Indian payments it shapes UAE planning, while Indian tax at source still follows the treaty.
Used in: India UAE DTAA for Companies in 2026 with Rates, Residency and PPT; Management Fees from an Indian Subsidiary to a UAE Parent in 2026
The minimum number of directors or members who must be present for a meeting to act. Under section 174 of the Companies Act, 2013 a board quorum is one third of the total strength or two directors, whichever is higher, with video attendance counted.
Used in: Board Meeting Rules Under the Companies Act for Non Resident Directors
R
The rates of tax at source that the annual Finance Act sets for each kind of payment to a non resident, plus surcharge and cess. A lower treaty rate replaces them where section 159 of the Income Tax Act, 2025 applies.
Used in: Form 27Q and Form 144 for TDS on Payments to Non Residents (2026)
A purpose code is the Reserve Bank of India code attached to a cross border payment to show its nature, such as export of services, FDI or a loan. The receiving AD bank uses it to classify an inward remittance, so the code decides whether money can go into an EEFC account or is treated as investment.
Used in: EEFC Account for Foreign Owned Companies and Exporters in India (2026); Form 145 and 146 (Old 15CA and 15CB) for Foreign Remittances 2026; Purpose Code P0802 and RBI Purpose Codes for Foreign Remittances 2026
The time within which export proceeds must reach India. From 1 Oct 2026, regulation 5(1)(a) of FEMA 23(R)/2026-RB gives nine months from shipment for goods and from the invoice date for services, and twelve months where the export is invoiced or settled in rupees. The AD bank may extend it.
Used in: EDF Form Guide: Export Declaration Form in India; SOFTEX Form Discontinued from 1 October 2026
The country specific ad valorem duty the US imposed under Executive Order 14257 of 2 Apr 2025, using the International Emergency Economic Powers Act. It applied on top of normal US duty. The US Supreme Court held on 20 Feb 2026 that IEEPA does not authorise such tariffs.
Used in: India US Trade Deal 2026: Tariffs and What It Means for US Groups
A design application in India that claims the filing date of an earlier application in the United Kingdom or a convention country, under section 44 of the Designs Act, 2000 and rule 15 of the Designs Rules, 2001. It must be filed within six months of the first application.
Used in: Copyright Registration in India and Designs for Foreign Companies
The procedure in RBI A.P. (DIR Series) Circular No. 19 of 11 Nov 2024 for an FPI that crosses 10 percent to treat its whole holding as FDI within five trading days of settlement. It needs prior approvals and the investee company's concurrence, is barred in sectors prohibited for FDI and cannot be reversed.
Used in: FDI vs FPI in India, the 10 Percent Line and Reclassification in 2026
The power of the Central Government under section 16 of the Companies Act, 2013 to direct a company to change a name that is identical to, or too nearly resembles, an existing company's name or a registered trademark. The company must comply within three months by ordinary resolution.
Used in: Change Company Name in India with RUN, MGT-14 and INC-24 (2026)
An officer of the Ministry of Corporate Affairs who exercises delegated powers of the Central Government over a region of States. Under the Companies Act, 2013 the Regional Director confirms shifts of registered office between ROCs and approves shifts between States.
Used in: Change of Registered Office in India Within or Across States (2026)
The share of a product's value that comes from the partner countries, used as an origin test in many of India's FTAs. Some agreements express the same test as a cap on the value of non originating materials instead.
Used in: Rules of Origin in India 2026: CAROTAR 2020 Guide for FTA Importers
The register every company keeps at its registered office under section 85 of the Companies Act, 2013 and rule 10 of the charges rules. It records every charge and its modification and satisfaction, is preserved permanently, and is open to members and creditors without fee.
Used in: CHG-1 Form for Registering a Charge on Loans to an Indian Company
Section 12 of the Companies Act, 2013 requires every Indian company to have a registered office in India, within 30 days of incorporation and at all times after, that can receive notices. Proof is a recent utility bill plus the owner's no objection letter or a rent agreement. A later change goes to the Registrar in Form INC-22.
Used in: Change of Registered Office in India Within or Across States (2026); Company Registration in India from Chile (2026); Company Registration in India from Finland: Process, Cost and Timeline (2026); Company Registration in India from Mexico; Company Registration in India from Turkey: Process, Cost and Timeline (2026) and 2 more
The registered office NOC is the owner's or authorised occupant's written authorisation for the company to use premises as its registered office. Rule 25(2)(c) requires it with proof of ownership or occupancy.
Used in: Registered Office Address Proof for a New Company in India
A licensee recorded on the Register under sections 48 and 49 of the Trade Marks Act, 1999. The proprietor and licensee apply jointly on Form TM-U within six months of the written licence agreement, under rule 86 of the Trade Marks Rules, 2017.
Used in: Trademark Registration for a Foreign Company in India (2026)
A registered valuer is a person registered under section 247 of the Companies Act, 2013 and the Companies (Registered Valuers and Valuation) Rules, 2017. Rule 13 of the Companies (Share Capital and Debentures) Rules, 2014 needs a registered valuer's report for a preferential allotment, and rule 12(7) of the PAS Rules attaches it to Form PAS-3.
Used in: Angel Tax Abolished in India and What Foreign Investors Still Face; FEMA Pricing Guidelines for Share Issue and Transfer in 2026; PAS-3 Return of Allotment for Shares Issued to Foreign Investors; Sweat Equity Shares in India for Private and Foreign Owned Companies
The Ministry of Corporate Affairs officer for a state or union territory with whom companies register and file annual returns under the Companies Act, 2013. The RoC keeps the public record of directors, charges and filings, and can remove a company's name under section 248 on specified grounds, such as no business for two financial years.
Used in: Choosing an India Registration Service for Foreign Founders; Top CA Firms for Foreign Subsidiaries in India (2026): 5 Types & Fees Compared; UK Ltd vs India Private Limited Structure (2026)
An officer the Central Government authorises under section 2(r) of the Immigration and Foreigners Act, 2025 to act for an area it specifies. FRROs and district Foreigners Registration Officers hold the role. Section 6 of the Act requires foreigners to register with the Registration Officer concerned.
Used in: FRRO Registration 2026 for Foreign Employees, Steps and Deadlines
A person or entity listed in section 2(76) of the Companies Act, 2013 and rule 3 of the Companies (Specification of Definitions Details) Rules, 2014. It covers directors, key managerial personnel, their relatives, firms and companies they are interested in, group companies, and the holding company's directors and KMP.
Used in: Related Party Transactions Under Section 188 for an Indian Subsidiary
Under the Explanation to section 15 of the CGST Act, persons are related if, for example, one controls the other, both are controlled by a third person, or one person holds 25 percent or more of the voting shares of both.
Used in: Reverse Charge on Import of Services from a Foreign Parent (2026)
The date from which the two year limit for a GST refund runs, set by Explanation 2 to section 54 of the CGST Act, 2017. For an export of services it is the date of receipt of payment, or the invoice date where payment came in advance.
Used in: GST Refund for Exporters of Services Under LUT with RFD-01 (2026)
A shareholder's transfer of its rights entitlement to another person, allowed by section 62(1)(a)(ii) of the Companies Act, 2013 unless the articles bar it. When a resident renounces to a non resident parent, rule 7A of the Non Debt Instruments Rules, 2019 applies the fair value floor to those shares.
Used in: Rights Issue by an Indian Subsidiary to Its Foreign Parent in 2026
A person who answers for the Indian tax of a non resident. Section 303 of the Income Tax Act, 2025 lets a non resident be represented. For a PAN application, a representative assessee or authorised representative can file Form 96 and must give an Indian address, except for foreign portfolio investors.
Used in: Form 49AA in 2026 and PAN for Foreign Companies (Now Form 96)
The MCA web service an existing Indian company uses to reserve a new name before changing it, under rule 9 of the Companies (Incorporation) Rules, 2014. The Central Registration Centre approves or rejects it, and an approved name stays reserved for 60 days under section 4(5) of the Companies Act, 2013.
Used in: Change Company Name in India with RUN, MGT-14 and INC-24 (2026)
RUN is the MCA web service for reserving a name. Rule 9 of the Companies (Incorporation) Rules, 2014 uses it for a change of name of an existing company, and a name reserved that way is held for 60 days.
Used in: Company Name Approval in India and Common Rejection Reasons
Decisions that the articles of a company reserve for the prior approval of a named shareholder or its nominee directors, such as budgets, borrowings and share issues. Indian law enforces them against the company when they are written into the articles under section 5 of the Companies Act, 2013.
Used in: Memorandum of Association and Articles for a Foreign Owned Subsidiary
An individual who is resident in India for a tax year but meets one of the tests in section 6(13) of the Income Tax Act, 2025, such as non residence in nine of the ten preceding tax years. India taxes such a person mainly on Indian income and income received in India.
Used in: Employment Visa India 2026 for Foreign Employees and Directors; Tax Residency India 2026 for Foreign Employees and the 182 Day Rule
Section 149(3) of the Companies Act, 2013 requires every company to have at least one director who stayed in India for 182 days or more in the financial year. A new company applies the test proportionately in its first financial year. Nationality does not matter. The role carries full statutory duties even when a parent abroad owns the company.
Used in: Branch Office vs Subsidiary in India for a UAE Company (2026); Company Registration in India for British Citizens; Company Registration in India for Foreign Founders; Company Registration in India for US Citizens (2026); Company Registration in India from Armenia: Process, Cost and Timeline (2026) and 94 more
An individual who is a person resident in India under FEMA and a citizen of India. RBI's Master Direction on Foreign Investment uses the term to decide whether an Indian company is owned and controlled by Indians, which decides whether its downstream investment counts as indirect foreign investment.
Used in: Downstream Investment Rules for FOCCs and Form DI in 2026 (FEMA)
Under section 6(2) of the Income Tax Act, 2025 (old section 6(1)), an individual is resident for a tax year after 182 days in India, or 60 days plus 365 days in the four preceding tax years. A not ordinarily resident individual is taxed on foreign income only if it comes from a business controlled in India.
Used in: Business Visa India 2026 for Foreign Founders and Board Directors; How to Avoid Permanent Establishment Risk in India
Restoration is an NCLT order that puts a struck off company's name back on the register under section 252 of the Companies Act, 2013. An aggrieved person may appeal within three years of the dissolution order. The company, a member, a creditor or a workman may apply within 20 years of the Gazette notice.
Used in: Winding Up of Company in India 2026 by Strike Off or Liquidation
The Indian or foreign company that takes over the assets and liabilities of the merging companies in a cross border merger. The FEMA Cross Border Merger Regulations, 2018 place the post merger duties, such as selling non permitted overseas assets within two years, on this company.
Used in: Cross Border Merger in India Under Rule 25A and FEMA (2026)
Termination of a worker's service by the employer for any reason, other than as disciplinary punishment, under section 2(zh) of the Industrial Relations Code, 2020. Voluntary retirement, superannuation, contract expiry or a contract stipulation, end of a fixed term and continued ill health are excluded.
Used in: Termination of Employee in India and Retrenchment Rules in 2026
The payment section 70(b) of the Industrial Relations Code, 2020 requires before retrenching a worker with one year of continuous service. It equals 15 days' average pay for each completed year of continuous service, or any part above six months.
Used in: Termination of Employee in India and Retrenchment Rules in 2026
Under the reverse charge mechanism the recipient, not the supplier, pays GST on notified supplies. Section 5(3) of the IGST Act, 2017 makes the Indian recipient pay GST on imported services, such as management or software fees paid to a foreign parent. The recipient can usually claim the tax as input credit.
Used in: 57th GST Council Meeting Recommendations Explained (8 October 2026); Reverse Charge on Import of Services from a Foreign Parent (2026); Top GST Registration and Filing Services in India for Foreign Owned Businesses (2026)
Where a GST registered Indian business buys OIDAR services from abroad, the Indian buyer pays IGST under section 5(3) of the IGST Act and claims it as input tax credit, and the foreign supplier charges no Indian GST.
Used in: OIDAR Services GST in India for Foreign SaaS Companies (2026)
The move of a startup's holding company from a foreign country back to India, so that the Indian company becomes the top company owned directly by the founders and investors. In India it is usually done by an inbound merger under section 234 of the Companies Act, 2013, or by a share swap under FEMA.
Used in: Reverse Flip to India for US and Singapore Holding Companies (2026)
An offer of new shares to existing equity shareholders in proportion to their paid up capital, made under section 62(1)(a) of the Companies Act, 2013. Each shareholder may accept, decline or renounce its entitlement. The board approves the issue and sends a letter of offer stating the shares offered, the price and the time limit.
Used in: Rights Issue by an Indian Subsidiary to Its Foreign Parent in 2026
The yearly returns every company files with the Registrar of Companies under the Companies Act, 2013. Financial statements go in Form AOC-4 within 30 days of the annual general meeting (section 137). The annual return goes in Form MGT-7 within 60 days of it (section 92), or Form MGT-7A for small companies and OPCs.
Used in: Top Virtual CFO Firms in India for Startups and Foreign Subsidiaries (2026)
A notice from the Registrar of Companies asking a company and its officers why a penalty should not be imposed for a stated default. Under the 2024 amendment rules, the notice, reply, hearing and payment run on the MCA V3 portal.
Used in: What ROC Penalty Orders Teach Foreign Owned Companies
A series of transactions through which funds are transferred among the parties to an arrangement, such as money leaving India and coming back as share capital or a loan. Section 180 of the Income Tax Act, 2025 deems it to lack commercial substance, without regard to tracing, timing or mode of transfer.
Used in: GAAR in India for Foreign Companies and Holding Structures (2026)
Rule 19(3) of the Foreign Exchange Management (Overseas Investment) Rules, 2022 bars a person resident in India from making a financial commitment in a foreign entity that invests into India if the result is a structure with more than two layers of subsidiaries. It matters where Indian resident founders own a foreign parent that sets up an Indian subsidiary.
Used in: ODI Rules 2022 for Indian Companies Investing Abroad in 2026; Singapore to India Company Registration: Parent Company Guide
The statement in a company's audit report, required by rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 under section 143(3)(j) of the Companies Act, 2013, on whether the accounting software had an audit trail that ran all year, was not tampered with and was preserved.
Used in: Audit Trail under the Companies Act and the Edit Log Rule in 2026
The four items a non resident without PAN gives the Indian payer under rule 217 of the Income Tax Rules, 2026 to avoid the higher no PAN withholding rate: name and contact details, overseas address, a TRC where available, and the home country TIN. The relief covers interest, royalty, fees for technical services, dividends and capital asset transfers.
Used in: Form 10F and Tax Residency Certificate in India for Non Residents (2026)
The rule in the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 that allows mergers between Indian and foreign companies. It needs prior RBI approval and compliance with sections 230 to 232, and since 17 Sep 2024 allows a fast track for a foreign parent and its wholly owned Indian subsidiary.
Used in: Cross Border Merger in India Under Rule 25A and FEMA (2026)
Conditions that decide whether goods qualify for the reduced duty under a trade agreement, usually by where they were made or how much local value was added. In India, customs verifies origin claims under the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020, known as CAROTAR.
Used in: India EU FTA 2026: Status, Tariffs and What Changes for EU Companies; UK India Free Trade Agreement in Force: Business Impact (2026)
S
A price or margin that the income tax department accepts without a comparability study, under section 167 of the Income Tax Act, 2025 and rules 88 to 91 of the Income Tax Rules, 2026. The taxpayer must opt in, and only listed transactions within the stated thresholds qualify.
Used in: Arm's Length Price Methods in India: 6 Methods Explained for Founders; Budget 2026 Changes for Foreign Owned Companies and Non Residents; Data Centre India Tax Holiday 2026: Incentives, Rules and Approvals; Employer of Record vs Subsidiary in India for Foreign Companies (2026); Financial Reporting for Foreign Subsidiaries in India (2026) and 3 more
Under Explanation I to rule 6 of the Companies (Audit and Auditors) Rules, 2014, firms operating under the same brand name, trade name or common control. After mandatory rotation, an incoming auditor from the same network as the outgoing auditor is not eligible.
Used in: Auditor of an Indian Subsidiary and the Parent's Global Audit Firm
The part of an Indian income tax return where a resident individual reports foreign assets, such as overseas shares and broker accounts, held at any time in the calendar year. A foreign asset left out can attract a penalty under section 43 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
Used in: ITR-6 for Foreign Owned Companies in 2026, Due Dates and Schedules; RSU vs ESOP Tax in India 2026 for Employees of a Foreign Parent
Schedules of the CBDT notified income tax return forms, including ITR-6 for companies. Schedule FSI reports foreign source income by country and head, and Schedule TR reports the relief claimed for foreign tax. Their figures must match the Form 67 or Form 44 on record, country by country.
Used in: Form 67 and Foreign Tax Credit in India for Companies (2026)
An activity listed in Schedule I to the CGST Act that is a supply even without consideration, such as supplies between related or distinct persons in the course of business and imports of services from a related person.
Used in: GST on Related Party Transactions and Cross Charges in India (2026)
The schedule that sets the form of the balance sheet, statement of profit and loss and notes for Indian companies, under section 129(1) of the Companies Act, 2013. Division I applies to companies on Indian AS, Division II to Ind AS companies and Division III to Ind AS NBFCs.
Used in: Schedule III Companies Act Format and Key Disclosures in 2026
ITR-6 schedule in which an unlisted company that is not a DPIIT recognised start up lists each shareholder at year end with residential status, PAN, allotment date, shares held and amount received. It also lists share application money and shareholders who exited during the year.
Used in: ITR-6 for Foreign Owned Companies in 2026, Due Dates and Schedules
The list of activities a company may include in its CSR Policy under section 135 of the Companies Act, 2013. It covers areas such as hunger and health, education, gender equality, environment, heritage, veterans, sports, government relief funds, research, rural development, slums and disaster management.
Used in: CSR Applicability for Foreign Owned Companies in India (2026)
Indirect greenhouse gas emissions in a company's value chain, such as purchased goods, transport and use of sold products, outside its own operations and purchased energy. BRSR asks for them as a leadership indicator under Principle 6, while Scope 1 and Scope 2 are essential indicators.
Used in: BRSR Reporting in India and Foreign Owned Subsidiaries (2026)
An arrangement in which an employer places its employee with another company, usually a group company, for a fixed period. The employee works under the host's direction but often keeps employment, pay or benefits with the home employer. Indian tax and GST treatment turns on who the real employer is.
Used in: Secondment of Employees to India with PE, GST and TDS Rules (2026)
The standard on meetings of the board of directors issued by the Institute of Company Secretaries of India and approved by the Central Government. Section 118(10) of the Companies Act, 2013 requires every company to observe it.
Used in: Board Meeting Rules Under the Companies Act for Non Resident Directors
The standard on general meetings issued by the Institute of Company Secretaries of India and approved by the Central Government. Section 118(10) of the Companies Act, 2013 makes it binding on companies for notices, quorum, voting and minutes of members' meetings.
Used in: Board Meeting Rules Under the Companies Act for Non Resident Directors
The concessional 15 percent tax regime in the Income Tax Act, 1961 for new domestic manufacturing companies. It was open only to companies set up after 1 Oct 2019 that began manufacturing by 31 Mar 2024. New entrants now choose between the 22 percent option (old section 115BAA, now section 200 of the Income Tax Act, 2025) and normal rates.
Used in: Manufacturing Company Registration in India for Foreign Parents (2026)
The Australian provision, inserted by Act No. 60 of 2022, that stops the India Australia DTAA from subjecting to Australian tax payments for Article 12(3)(g) services that are not royalties under Australian law. It applies to income years starting on or after 29 Dec 2022.
Used in: India Australia DTAA for Companies with Rates, 2022 Change and ECTA
A temporary import duty of up to 15 percent for up to 150 days under section 122 of the US Trade Act of 1974, used for balance of payments problems. Congress must act to extend it. The US applied 10 percent from 24 Feb to 24 Jul 2026.
Used in: India US Trade Deal 2026: Tariffs and What It Means for US Groups
The services a company's statutory auditor may not provide under section 144 of the Companies Act, 2013, directly or indirectly, to the company, its holding company or its subsidiary. They include bookkeeping, internal audit, financial system design, actuarial, investment advisory, investment banking, outsourced financial and management services.
Used in: Auditor of an Indian Subsidiary and the Parent's Global Audit Firm
The deduction under section 147 of the Income Tax Act, 2025 of 100 percent of eligible income of an Offshore Banking Unit or an IFSC unit. It replaced section 80LA of the Income Tax Act, 1961. The claim needs an accountant's report in Form 35 (old Form 10CCF).
Used in: GIFT City IFSC for Foreign Companies in 2026: Who Sets Up and Why
The notification by which the Central Government gives effect to a tax treaty or protocol under section 159(1) of the Income Tax Act, 2025, which replaced section 90(1) of the 1961 Act. Without it, a treaty term creates no enforceable right in India.
Used in: MFN Clause in India's DTAAs After the Nestle Ruling, Our View (2026)
The amount a registered person pays when it sells capital goods on which it took input tax credit. It is the higher of the credit taken, reduced by five percentage points a quarter under rule 40(2), and the tax on the transaction value.
Used in: Converting a Branch or Liaison Office into an Indian Subsidiary
A US duty imposed under section 232 of the Trade Expansion Act of 1962 on imports that threaten US national security, such as steel, aluminium, copper, vehicles and patented pharmaceuticals. These duties survived the IEEPA ruling and do not stack with the Section 122 surcharge.
Used in: India US Trade Deal 2026: Tariffs and What It Means for US Groups
The section, inserted by the Finance Act, 2020, that sets the procedure for claiming a preferential duty rate under a trade agreement. It puts the burden of reasonable care on the importer and lets customs verify origin, suspend the preference and deny it.
Used in: Rules of Origin in India 2026: CAROTAR 2020 Guide for FTA Importers
A US duty that the US Trade Representative imposes under section 301 of the Trade Act of 1974 after finding a foreign country's practice unreasonable or discriminatory. From 24 Jul 2026 it applies at 10 percent to most Indian goods.
Used in: India US Trade Deal 2026: Tariffs and What It Means for US Groups
Clause (g) of section 37(2) of the Income Tax Act, 2025, effective from 1 Apr 2026. It allows a deduction for an amount owed to a micro or small enterprise beyond the section 15 MSMED Act time limit only in the tax year it is actually paid. The return due date relief in section 37(3) does not apply to it.
Used in: MSME Form 1 Due Date 2026 and the 45 Day Payment Rule for Companies
A provision of the Income Tax Act, 1961, applying from assessment year 2024-25, that allowed a deduction for sums owed to micro and small enterprises beyond the section 15 MSMED Act time limit only in the year of actual payment. Section 37(2)(g) of the Income Tax Act, 2025 replaced it from 1 Apr 2026.
Used in: MSME Form 1 Due Date 2026 and the 45 Day Payment Rule for Companies
Section 446B of the Companies Act, 2013 halves penalties for one person companies, small companies, start up companies and producer companies. The cap is ₹2,00,000 for the company and ₹1,00,000 for an officer.
Used in: What ROC Penalty Orders Teach Foreign Owned Companies
A rule in the Companies Act 2006 that exempts a UK subsidiary from audit when its UK parent guarantees its liabilities under section 479C. It applies only to UK companies, so a UK group's Indian subsidiary still needs an audit under Indian law.
Used in: Statutory Audit of a UK Subsidiary in India for the UK Parent (2026)
The provision of the Income Tax Act, 2025 that repeals the 1961 Act but keeps it alive for tax years beginning before 1 Apr 2026. Returns, assessments, appeals, penalties and recovery for those years continue under the old law.
Used in: Tax Year Under the Income Tax Act, 2025 and the End of Assessment Year
A clause in a loan or debenture agreement that lets the lender convert the debt into shares. Section 62(3) of the Companies Act, 2013 exempts such a conversion from the rights and preferential issue rules if a special resolution approved the terms before the loan was raised.
Used in: Conversion of Loan into Equity in an Indian Subsidiary (2026)
The maximum share of an Indian company's equity that persons resident outside India may hold in a given sector, set by the Consolidated FDI Policy and the Foreign Exchange Management (Non Debt Instruments) Rules, 2019. A cap can combine with a route split, for example private sector banking at 74 percent, automatic only up to 49 percent.
The tax invoice a registered recipient issues to itself for a supply received from an unregistered supplier on which it pays tax under reverse charge, required by section 31(3)(f) of the CGST Act and due within 30 days under rule 47A.
Used in: Reverse Charge on Import of Services from a Foreign Parent (2026)
A seller's promise to repay part of the price if warranties prove untrue. Rule 9(6)(iii) of the Foreign Exchange Management (Non Debt Instruments) Rules, 2019 allows a seller in a resident to non resident transfer to indemnify up to 25 percent of the total price for up to 18 months after the buyer pays in full.
Used in: Deferred Consideration under FEMA in FDI Share Transfers (2026)
An independent assurance report on the controls of a service provider, such as a cloud ERP vendor or a group shared service centre. Indian auditors use it under Standard on Auditing 402 to rely on controls they cannot test directly, including audit trail settings.
Used in: Audit Trail under the Companies Act and the Edit Log Rule in 2026
A treaty rule that treats services furnished in a country through employees or other personnel as a PE once they pass a day count. Under Article 5(3)(a) of the India Australia DTAA the threshold is more than 183 days in any 12 month period.
Used in: How to Avoid Permanent Establishment Risk in India; India Australia DTAA for Companies with Rates, 2022 Change and ECTA; Secondment of Employees to India with PE, GST and TDS Rules (2026)
An adjustment in which an Indian exporter settles what an overseas buyer owes it against what it owes the same party or its group companies for imports. Regulation 7 of the 2026 Export and Import Regulations lets the AD bank allow it within the realisation period or any extension.
Used in: Export Realisation Period Under FEMA for Goods and Services (2026); Set Off Export Receivables Against Import Payables Under FEMA (2026)
A state incentive that refunds to an eligible manufacturer all or part of the State GST it paid in cash on sales, for a fixed number of years and within caps linked to its eligible investment. It is a subsidy under state policy, not a GST refund under the CGST Act, 2017.
Used in: PLI Scheme 2026: Manufacturing Incentives in India for Foreign Firms
Share application money is money received for shares before they are allotted. Under rule 2(1)(c)(vii) of the Companies (Acceptance of Deposits) Rules, 2014 it is not a deposit if the company allots within 60 days of receipt, or refunds within the next 15 days, and uses it only for allotment.
Used in: DPT-3 Return of Deposits 2026 for Foreign Owned Companies in India
An exchange in which an Indian company issues its shares to a non resident against shares of a foreign company. Schedule I to the FEMA Non Debt Instruments Rules, 2019 allows it, and rule 21 requires a SEBI registered merchant banker, or an investment banker outside India registered with the host regulator, to value the swap.
Used in: FEMA Pricing Guidelines for Share Issue and Transfer in 2026; Reverse Flip to India for US and Singapore Holding Companies (2026)
Work a parent does in its own capacity as an owner, such as group board meetings, investor relations or consolidating group accounts. An independent company would not pay for it. Rule 86(k) of the Income Tax Rules, 2026 keeps it out of low value adding services, and rule 89 requires its cost to leave the pool for the safe harbour.
Used in: Management Fees Transfer Pricing and What Indian Courts Accept
The Sexual Harassment electronic Box, an online portal of the Ministry of Women and Child Development at shebox.wcd.gov.in, launched in its current form on 29 Aug 2024. It routes complaints to the right committee and holds details of Internal and Local Committees uploaded by workplaces and districts.
Used in: POSH Compliance Checklist for Foreign Owned Companies in India
A state law that regulates shops and commercial establishments, including offices, through registration or intimation, hours, holidays, leave and conditions of work. Each state has its own Act, and these continue alongside the Occupational Safety, Health and Working Conditions Code, 2020.
Used in: Best City in India for a Tech Company in 2026: Four Hubs Compared; Shops and Establishment and Professional Tax for New Companies; Working Hours Under the Labour Code with Overtime and Leave in 2026
The exemption in Schedule IV, serial 3 to the Income Tax Act, 2025 for salary of a non citizen employee of a foreign enterprise with no business in India, where the stay in India does not exceed 90 days in the tax year. It replaced section 10(6)(vi) of the 1961 Act.
Used in: Tax Residency India 2026 for Foreign Employees and the 182 Day Rule
Under section 2(101) of the Income Tax Act, 2025, a capital asset held for not more than 24 months before transfer. Listed securities, UTI units, equity oriented fund units and zero coupon bonds use 12 months. Unlisted shares use the 24 month test, so they become long term after 24 months.
Used in: Tax on Sale of Unlisted Shares by Non Residents in India (2026)
An SIA (sabiedrība ar ierobežotu atbildību) is a Latvian limited liability company formed under the Latvian Commercial Law. When an SIA subscribes for shares in an Indian company, it is a person resident outside India under FEMA, so the Non Debt Instruments Rules, 2019 apply and the Indian company reports the issue in Form FC-GPR.
Used in: Company Registration in India from Latvia: Process, Cost and Timeline (2026)
Under the Explanation to section 455 of the Companies Act, 2013, any transaction other than fees paid to the Registrar, payments to meet legal requirements, allotment of shares to meet the Act's requirements, and payments for keeping the office and records.
Used in: Dormant Company Audit in India for Foreign Owned Subsidiaries (2026)
An individual who, directly or through layers of entities, holds at least 10 percent of an Indian company's shares, voting rights or distributable dividend, or exercises significant influence or control. Section 90 of the Companies Act, 2013 and the Companies (Significant Beneficial Owners) Rules, 2018 require the SBO to declare in Form BEN-1 and the company to file Form BEN-2.
Used in: BEN-2 and Significant Beneficial Owners with a Foreign Parent (2026); Company Registration in India for Foreign Founders; Company Registration in India from Argentina: Process, Cost and Timeline (2026); Company Registration in India from Armenia: Process, Cost and Timeline (2026); Company Registration in India from Botswana: Process, Cost and Timeline (2026) and 28 more
A Data Fiduciary or class the Central Government notifies under section 10 of the Digital Personal Data Protection Act, 2023, based on data volume, sensitivity and risk. It must appoint a Data Protection Officer based in India, an independent data auditor, and run yearly impact assessments and audits.
Used in: Data Centre India Tax Holiday 2026: Incentives, Rules and Approvals; DPDP Rules 2025 Compliance Timeline for Foreign Companies in India
A business connection under section 9(9)(d) of the Income Tax Act, 2025. It exists when payments from India to a non resident exceed INR 2 crore in a tax year, or the non resident systematically and continuously solicits business from, or interacts with, 3 lakh users in India (rule 13 of the Income Tax Rules, 2026).
Used in: Equalisation Levy in India, Its Abolition and What Now Applies; Significant Economic Presence and Business Connection in India 2026
Significant influence, under the Companies (Significant Beneficial Owners) Rules, 2018, is the power to take part, directly or indirectly, in the financial and operating policy decisions of the Indian reporting company without having control or joint control. A veto over the annual budget, or board rights held through a parent, can make an individual an SBO on this test.
Used in: BEN-2 and Significant Beneficial Owners with a Foreign Parent (2026); Significant Beneficial Owner Case on LinkedIn India and Group CEOs
The registration route in section 14(2) of the IGST Act for overseas OIDAR suppliers. It needs no Indian place of business and gives one registration for the whole country, with tax paid as IGST.
Used in: OIDAR Services GST in India for Foreign SaaS Companies (2026)
The Singapore Academy of Law is the competent authority that issues apostilles on Singapore documents under the Hague Apostille Convention, which Singapore joined in 2021. Eligible public documents go to SAL directly, while private documents such as board resolutions are first certified by a Singapore notary public. India accepts the apostille without Indian consular attestation.
Used in: Singapore to India Company Registration: Parent Company Guide
The integrated reporting form on RBI's FIRMS portal through which an Indian company reports foreign investment transactions, including the issue of shares under Form FC-GPR. The company files it, the AD bank reviews it, and its status shows as pending, acknowledged or rejected.
Used in: FC-GPR Compounding with RBI: 2026 FEMA Guide; FC-GPR Filing 2026: 30 Day Deadline, FIRMS Steps
IFSCA's online portal for entities setting up in an IFSC, also written SWITS. A Common Application Form covers IFSCA licences and registrations. Separate modules handle the SEZ Letter of Approval, GST registration and no objection certificates from RBI, SEBI and IRDAI. Use is mandatory for most activities since 1 Oct 2024.
Used in: GIFT City IFSC for Foreign Companies in 2026: Who Sets Up and Why
A company defined in section 2(85) of the Companies Act, 2013 with paid up capital up to INR 10 crore and turnover up to INR 100 crore, under G.S.R. 880(E) of 1 Dec 2025. A holding company or subsidiary can never be one. It files Form MGT-7A and needs no cash flow statement.
Used in: MGT-7 and AOC-4 Annual Filing for Foreign Owned Companies in 2026; Statutory Audit of a Foreign Owned Indian Subsidiary in 2026
An enterprise whose investment in plant and machinery or equipment does not exceed the limit for a medium enterprise under section 7 of the MSMED Act, 2006, as defined in rule 2(fa) of the Patents Rules, 2003. It pays the lower fee column and claims status on Form 28.
Used in: Patent Filing in India for Foreign Companies, PCT and Form 27
A bilateral agreement that lets an employee posted between India and another country stay in the home social security scheme for a fixed period. The India France agreement allows up to 60 months, and the India UK Double Contributions Convention applies from 15 Jul 2026 and covers contributions only.
Used in: PF and ESI for Foreign Owned Companies and Expat Staff in 2026; Social Security Agreement India 2026 and the Certificate of Coverage
A surcharge on imported goods levied under section 110 of the Finance Act, 2018 at 10 percent of the aggregate customs duties charged under section 12 of the Customs Act, 1962. For most goods that means 10 percent of basic customs duty. Notification 11/2018-Customs exempts or lowers it on some lines.
Used in: Customs Duty in India 2026: BCD, SWS, IGST and Valuation Explained
The two common Argentine company forms under Argentina's General Companies Law (Law 19,550) that can act as the parent investor in an Indian subsidiary. The Indian filing needs the parent's incorporation evidence, governing documents, investment approval and signatory authority, apostilled, translated where needed and consistent with the Indian subscription documents.
Used in: Company Registration in India from Argentina: Process, Cost and Timeline (2026)
The Costa Rican private limited liability company, which with the corporation (Sociedad Anónima, SA) is a common Costa Rican parent entity. Both are governed by Costa Rica's Commercial Code. The Indian filing needs the parent's registration evidence, governing documents, investment approval and signatory authority, certified and translated as the bank and filing professional require.
Used in: Company Registration in India from Costa Rica: Process, Cost and Timeline (2026)
The common Dominican company forms under Law 479-08 that can act as the parent investor in an Indian subsidiary. The Indian filing needs the parent's incorporation evidence, governing documents, investment approval and signatory authority, apostilled through MIREX after any notarial preparation and translated where needed.
Used in: Company Registration in India from the Dominican Republic: Process, Cost and Timeline (2026)
Romania's limited liability company under Companies Law No. 31/1990, registered with the National Trade Registry Office. An SRL can be the parent investor in an Indian subsidiary. The Indian filing needs its registration evidence, governing documents, investment approval and signatory authority, apostilled by the competent Romanian authority and translated.
Used in: Company Registration in India from Romania: Process, Cost and Timeline (2026)
A French simplified joint stock company and a common form for a French parent. For Indian incorporation, its approval of the investment is usually a president's decision or a board resolution, depending on its statutes. That document must be apostilled and translated consistently with the other SPICe+ filing documents.
Used in: Company Registration in India from France: Process, Cost and Timeline (2026)
A declaration for each software export invoice, filed with STPI or the SEZ authority within 30 days of the invoice date under the earlier export regime. It is discontinued for invoices from 1 Oct 2026, when the monthly EDF replaced it. Invoices dated up to 30 Sep 2026 still need SOFTEX.
Used in: EDF Form Guide: Export Declaration Form in India; SOFTEX Form Discontinued from 1 October 2026; Software Company Registration in India for Foreign Founders (2026)
An autonomous society under the Ministry of Electronics and Information Technology that promotes software exports. Under the 2015 export regulations its designated officials valued and certified SOFTEX forms. Under the 2026 Regulations, STPI or the AD bank is the specified authority for software exports in the domestic tariff area.
Used in: SOFTEX Form Discontinued from 1 October 2026; Software Company Registration in India for Foreign Founders (2026)
A notified area treated under section 53 of the Special Economic Zones Act, 2005 as outside India's customs territory for authorised operations. Units inside import duty free, get zero rated GST supplies and must earn positive net foreign exchange. The Board of Approval and the Development Commissioner run the scheme.
Used in: Global Capability Centre India 2026 Guide to Structure, Tax and Compliance; SEZ in India 2026: Setting Up an SEZ Unit as a Foreign Company
A notice that members holding at least 1 percent of the voting power, or shares with at least INR 5,00,000 paid up, give to a company of their intention to move a resolution. Section 115 of the Companies Act, 2013 and rule 23 of the Management and Administration Rules govern it.
Used in: First Auditor Appointment and Form ADT-1 for Foreign Owned Companies; Removal of Director in India, Resignation and Replacement Rules 2026
A customs unit that examines whether a relationship between an Indian importer and its overseas supplier has influenced the declared price. CBIC Circular 5/2016-Customs sets the procedure, including the Annexure A and B questionnaires and an investigation report that is not an appealable order.
Used in: Customs Duty in India 2026: BCD, SWS, IGST and Valuation Explained
The authority with which an exporter files the EDF under the 2026 export regulations: Customs for goods, the AD bank for services other than software, the AD bank or STPI for software, and the Development Commissioner for a unit in a Special Economic Zone.
Used in: EDF Form Guide: Export Declaration Form in India; SOFTEX Form Discontinued from 1 October 2026
A data centre operated by an Indian company, whether owned or leased, that meets conditions prescribed under the Income Tax Act, 2025. Note 3(c) to Schedule IV defines it for serial 13C. The earlier MeitY notification and ownership tests were removed by Act No. 21 of 2026.
Used in: Data Centre India Tax Holiday 2026: Incentives, Rules and Approvals
The date by which the tax audit report must be furnished: one month before the return due date, as defined in section 63(5)(a) of the Income Tax Act, 2025. The statutory audit must be complete before it. A company with a transfer pricing report has a later return date and so a later specified date.
Used in: Tax Audit Limit 2026 and Form 26 under Section 63 for Companies
A specified domestic transaction is a transaction between related Indian parties that transfer pricing rules cover because the taxpayer claims a profit linked deduction or the concessional rate for new manufacturing companies. The rules, carried from old section 92BA into the Income Tax Act, 2025, apply only where such transactions exceed INR 20 crore in the year.
Used in: Arm's Length Price Methods in India: 6 Methods Explained for Founders; Form 3CEB: Applicability, Due Date, Penalties (AY 2026-27)
A currency in which an IFSC unit may transact. Section 20 of the IFSCA Act, 2019 requires IFSC financial services to be conducted in the foreign currency specified by regulations, made in consultation with the Central Government. The First Schedule to the IFSCA (Banking) Regulations, 2020 lists the currencies for banking units.
Used in: GIFT City IFSC for Foreign Companies in 2026: Who Sets Up and Why
Under section 164(i) of the Finance Act, 2016, online advertisement, any provision for digital advertising space or any other facility or service for online advertising, and any other service the Central Government notifies. The 6 percent equalisation levy applied to these services.
Used in: Equalisation Levy in India, Its Abolition and What Now Applies
The current income on which a person computes advance tax, as estimated by the person under section 406 or fixed by an Assessing Officer's order under section 407 of the Income Tax Act, 2025. Section 405 then applies the rates in force and deducts TDS and TCS.
Used in: Advance Tax Due Dates for Companies in India Under the 2025 Act
The integrated web form on the MCA portal used to incorporate a company in India. It combines name reservation, incorporation, DIN allotment for up to three proposed directors without one, and applications for PAN and TAN, with optional registrations such as GST, EPFO and ESIC. A professional certifies it and the directors sign with a DSC.
Used in: Branch Office vs Subsidiary in India for a UAE Company (2026); Choosing an India Registration Service for Foreign Founders; Company Registration in India for British Citizens; Company Registration in India for Foreign Founders; Company Registration in India for US Citizens (2026) and 42 more
SPICe+ Part A is the name reservation part of form INC-32 for a new company. Filed on its own it takes two proposed names, the fee is ₹1,000, and an approved name is held for 20 days.
Used in: Company Name Approval in India and Common Rejection Reasons
The period from the start to the end of a worker's working day, including rest intervals. Section 25(1)(b) of the OSH Code, 2020 requires the daily period to be fixed with intervals and spread overs that the appropriate government notifies.
Used in: Working Hours Under the Labour Code with Overtime and Leave in 2026
A state levy on the Memorandum and Articles of Association filed to incorporate a company, at rates that the state of the registered office sets. It is a government charge passed through at cost, so it differs between Indian states and can change a quote.
An undertaking by the overseas supplier's bank to repay the Indian importer if the supplier fails to perform. Under regulation 12(2) of the 2026 Export and Import Regulations, it must be unconditional and irrevocable, from an international bank of repute, when an importer has defaulted on an earlier advance.
Used in: Advance Remittance for Import Under FEMA, Limits and IDPMS (2026)
Written conditions of employment covering classification, hours, leave, termination notice, misconduct and discipline. Chapter IV of the Industrial Relations Code, 2020 requires them for an industrial establishment with 300 or more workers, using the government's model standing orders as the base.
Used in: Termination of Employee in India and Retrenchment Rules in 2026
The exporter's or producer's own declaration, in a set template, that a product meets the rules of origin of the India EU FTA. It travels with the invoice, is valid for 12 months from completion and is the main proof an Indian importer relies on to claim the preferential duty.
Used in: India EU FTA 2026: Status, Tariffs and What Changes for EU Companies
The annual audit of an Indian company's financial statements by a chartered accountant under sections 139 and 143 of the Companies Act, 2013, with no turnover threshold. The board appoints the first auditor within 30 days of incorporation, and the members then appoint an auditor for a five year term at the first annual general meeting.
Used in: Audit Trail under the Companies Act and the Edit Log Rule in 2026; Company Registration in India from Armenia: Process, Cost and Timeline (2026); Company Registration in India from Austria: Process, Cost and Timeline (2026); Company Registration in India from Lithuania: Process, Cost and Timeline (2026); Company Registration in India from Mauritius: Process, Cost and Timeline (2026) and 14 more
Bonus payable under Chapter VI (sections 26 to 41) of the Code on Wages, 2019 to employees with wages up to INR 21,000 a month who worked 30 days in the year. It is 8.33 to 20 percent of wages, computed on wages capped at INR 7,000 a month or the Central Government's minimum wage, if higher.
Used in: New Labour Code Salary Structure and the 50 Percent Wage Rule in 2026
The removal of a company's name from the register by the Registrar of Companies under section 248 of the Companies Act, 2013, after a Form STK-1 notice allowing 30 days for representations. Grounds include not starting business within a year of incorporation and, under section 248(1)(d), unpaid subscriptions with no INC-20A filed within 180 days.
Used in: INC-20A Commencement of Business for a Foreign Subsidiary in 2026
Subscribed capital is the part of a company's capital that its members have for the time being agreed to take up, under section 2(86) of the Companies Act, 2013. For a new subsidiary it is usually the shares the parent and its nominee take in the MoA.
Used in: How Much Authorised Capital a Foreign Subsidiary Needs: Our View
A person who signs the memorandum of association at incorporation and agrees to take shares, becoming a member on registration under the Companies Act, 2013. A private company needs at least two, so a foreign parent often subscribes with a nominee. A foreign subscriber's signature and identity proof are notarised abroad.
Used in: Company Registration in India from New Zealand: Process, Cost and Timeline (2026); Company Registration in India from Uganda: Process, Cost and Timeline (2026); INC-20A Commencement of Business for a Foreign Subsidiary in 2026; India Company Setup for Mexico Based Founders
A company in which another company, its holding company, controls the board composition or more than one half of the total voting power. Section 2(87) of the Companies Act, 2013 sets the test, and control held through another subsidiary counts.
Used in: Holding and Subsidiary Company in India Under Section 2(87)
Pay due to a worker suspended pending a disciplinary inquiry, under section 38 of the Industrial Relations Code, 2020. It is 50 percent of wages for the first 90 days and 75 percent after that, unless the delay is due to the worker.
Used in: Termination of Employee in India and Retrenchment Rules in 2026
A service in which one person provides staff to work under another's direction. In Northern Operating Systems (19 May 2022) the Supreme Court treated a foreign group company's secondment of staff to its Indian affiliate as such a service, taxable on the Indian recipient under reverse charge.
Used in: Secondment of Employees to India with PE, GST and TDS Rules (2026)
Surcharge is an extra percentage on income tax that rises with income, and cess is 4 percent on tax plus surcharge. For a foreign company the surcharge is 2 percent above INR 1 crore and 5 percent above INR 10 crore, which gives an effective rate of 36.4 to 38.22 percent.
Used in: Corporate Tax Rate in India for Foreign Companies: 35%+
Equity shares a company issues to its directors or employees at a discount or for consideration other than cash, for know how, intellectual property rights or value additions. Section 2(88) of the Companies Act, 2013 defines them, and section 54 with rule 8 of the Share Capital and Debentures Rules governs their issue.
Used in: Sweat Equity Shares in India for Private and Foreign Owned Companies
T
The model articles of association for a company limited by shares in Schedule I to the Companies Act, 2013. Its regulations cover share capital, lien, calls, transfers, general meetings, the board and dividends, and they apply by default under section 5(8).
Used in: Memorandum of Association and Articles for a Foreign Owned Subsidiary
The Table of Fees is the annexure to the Companies (Registration Offices and Fees) Rules, 2014 that sets MCA fees by authorised capital. It has one scale for One Person Companies and small companies and a higher scale for all other companies, including subsidiaries.
Used in: Company Registration Fees in India 2026: Every Government Charge
A product category in the customs tariff, identified by its HS code, to which a duty rate applies. India sets duty rates under the Customs Tariff Act, 1975. CETA commits reductions line by line on a phased schedule, so a business checks the schedule for its own tariff line.
Used in: UK India Free Trade Agreement in Force: Business Impact (2026)
A fixed quantity of a product that may enter at a lower duty each year, with imports above the quota paying the normal rate. The India EU FTA uses quotas for cars and for steel, so the lower rate on those products is capped by volume.
Used in: India EU FTA 2026: Status, Tariffs and What Changes for EU Companies
An audit of business accounts by an accountant to report items that change taxable income. Section 63 of the Income Tax Act, 2025 requires it, replacing section 44AB of the 1961 Act from 1 Apr 2026. It applies above INR 1 crore of turnover, or INR 10 crore where cash receipts and payments are each 5 percent or less.
Used in: Tax Audit Limit 2026 and Form 26 under Section 63 for Companies
Tax a payer deducts from a specified payment before paying it, under section 393 of the Income Tax Act, 2025, which replaced section 195 and the other TDS sections of the 1961 Act. Payments to non residents fall under section 393(2), serial 17. The tax is deposited by the 7th of the next month and reported quarterly.
Used in: Company Registration in India from Brunei: Process, Cost and Timeline (2026); Company Registration in India from Turkey: Process, Cost and Timeline (2026); Top Virtual CFO Firms in India for Startups and Foreign Subsidiaries (2026); Virtual CFO for a Foreign Subsidiary in India (2026 Guide)
TAN is the ten character number the Income Tax Department allots to a person who must deduct or collect tax at source. It must be quoted on every TDS challan, quarterly statement and certificate, such as Forms 140, 144 and 131 under the Income Tax Rules, 2026. A new Indian company gets its TAN through SPICe+ at incorporation.
Used in: Company Registration in India from Mexico; Form 27Q and Form 144 for TDS on Payments to Non Residents (2026); TAN Registration for Foreign Owned Companies in India (2026)
The tax on the total income declared in the return, less TDS, TCS, reliefs under sections 157, 159 and 160 and specified tax credits under section 206, as defined in section 425(5) of the Income Tax Act, 2025. Interest for deferment of advance tax is measured against it.
Used in: Advance Tax Due Dates for Companies in India Under the 2025 Act
The taxpayer number issued by the tax authority of the country where a foreign applicant is resident. Forms 95 and 96 make it mandatory. Rule 217 of the Income Tax Rules, 2026 also asks a non resident without a PAN to give it to the payer, or a unique government number if no TIN exists.
Used in: Form 49AA in 2026 and PAN for Foreign Companies (Now Form 96)
A TRC is the certificate a payee's home tax authority issues to confirm its tax residence there for a period. Section 159(8)(a) of the Income Tax Act, 2025 makes it a condition for treaty relief in India, alongside Form 41. An Indian resident applies for one in Form 42 and receives it in Form 43.
Used in: Company Registration in India for US Citizens (2026); Company Registration in India from Iceland: Process, Cost and Timeline (2026); Company Registration in India from Jordan: Process, Cost and Timeline (2026); Company Registration in India from Kuwait: Process, Cost and Timeline (2026); Company Registration in India from Luxembourg: Process, Cost and Timeline (2026) and 33 more
The twelve months of the financial year starting on 1 April, defined in section 3 of the Income Tax Act, 2025. It replaced the "previous year" of the 1961 Act from 1 April 2026. A new business starts its first tax year on the date it is set up.
Used in: Compliance Calendar 2026-27 for Foreign Owned Companies in India; Financial Year in India for a Foreign Subsidiary of a December Parent; Income Tax Act 2025 Changes for Foreign Owned Companies in India; Tax Audit Limit 2026 and Form 26 under Section 63 for Companies; Tax Residency India 2026 for Foreign Employees and the 182 Day Rule and 1 more
The TDS Reconciliation Analysis and Correction Enabling System (www.tdscpc.gov.in), the Income Tax Department portal run by the Centralised Processing Cell for TDS. Payees use it to file Form 128 and download lower deduction certificates. Payers use it to download those certificates, check TDS defaults and generate Form 131 TDS certificates for their deductees.
Used in: Lower Deduction Certificate for Non Residents in 2026 (Form 128); TAN Registration for Foreign Owned Companies in India (2026)
The rate at which the State Bank of India buys a foreign currency by telegraphic transfer, as defined in rule 207 of the Income Tax Rules, 2026. Indian tax rules use it to convert foreign currency figures into rupees, such as group revenue for the master file and CbCR thresholds, and foreign tax for a foreign tax credit.
Used in: Form 67 and Foreign Tax Credit in India for Companies (2026); Master File and CbCR Requirements in India (2026), Forms 56 to 60
Telangana's single window industrial approval system with self certification. Invest Telangana says approvals are deemed granted if no decision issues within 15 days for mega projects or 30 days for other projects.
Used in: Best City in India for a Tech Company in 2026: Four Hubs Compared
Funding a company with far more debt than equity, often from its own group, so that interest deductions reduce taxable profit. India counters it with section 177 of the Income Tax Act, 2025 (old section 94B), which caps related party interest by reference to EBITDA.
Used in: Thin Capitalisation in India and the 30 Percent EBITDA Interest Cap
A tie breaker rule is the clause in Article 4 of a tax treaty that settles residence when a company is resident in both countries. India's treaties with Singapore and the UAE pick the country of POEM. Others leave it to mutual agreement, and the India US treaty has no tie breaker for companies.
Used in: Place of Effective Management (POEM) in India for Foreign Companies
TM may be used for a mark that is claimed, including while an application is pending. The ® symbol signals registration under the Trade Marks Act, 1999, and section 107 punishes falsely representing a mark as registered with imprisonment up to three years, a fine, or both.
The figure that decides the rounding units in Schedule III financial statements since 1 Apr 2021. In practice it is revenue from operations plus other income in the statement of profit and loss, with INR 100 crore as the dividing line.
Used in: Schedule III Companies Act Format and Key Disclosures in 2026
The rule in a social security agreement that adds insurance periods completed in both countries to decide whether a person qualifies for a pension. Each country then pays a pension only for its own periods, on a pro rata basis. In India it applies to the Employees' Pension Scheme.
Used in: Social Security Agreement India 2026 and the Certificate of Coverage
The free trade agreement between India and the four EFTA states, in force since 1 Oct 2025. It covers goods, rules of origin, services, investment promotion, intellectual property and sustainable development. Indian customs applies it through tariff notifications and Notification 59/2025-Customs (N.T.).
Used in: India EFTA TEPA 2026: What Swiss and Norwegian Investors Should Know
The IP India office that examines and registers trade marks under the Trade Marks Act, 1999 and the Trade Marks Rules, 2017, under the Controller General of Patents, Designs and Trade Marks. Applicants file online, and the Registrar decides objections, advertisement and registration.
An electronic platform, authorised by the RBI under the Payment and Settlement Systems Act, 2007, on which MSME suppliers upload invoices for banks and financiers to finance. Larger buyers are onboarded on it, and the MSMED (Amendment) Act, 2026 requires central public sector enterprises to settle MSME invoices through it once notified.
Used in: MSME Form 1 Due Date 2026 and the 45 Day Payment Rule for Companies
A check of existing trade marks in the relevant class, before filing, for identical, phonetically similar and visually similar marks. No law requires it, but it lowers the risk of an objection under section 11 or an opposition under section 21 of the Trade Marks Act, 1999.
Goods and services are grouped into 45 classes under the Nice Classification, which the Trade Marks Rules, 2017 follow. An application names the class or classes it covers, and the government filing fee is charged for each class and each mark.
A third party challenge to a mark after it is advertised in the Trade Marks Journal, filed in Form TM-O under section 21 of the Trade Marks Act, 1999 within four months of advertisement. The applicant must file a counter statement in reply, or the application is treated as abandoned.
Used in: Top Trademark Registration Services in India (2026); Trademark Registration for a Foreign Company in India (2026)
A transfer pricing method that compares the net profit margin earned on a related party transaction, measured on a base such as costs or sales, with the margins of comparable independent companies. It is a prescribed method under rule 10B of the Income Tax Rules, 1962, carried into the 2026 Rules, and the usual test for captive service centres.
Used in: Arm's Length Price Methods in India: 6 Methods Explained for Founders; Transfer Pricing Between US Parent and Indian Subsidiary
Transfer pricing rules in sections 161 to 173 of the Income Tax Act, 2025 require international transactions between associated enterprises, such as service fees, royalties and interest between an Indian company and its foreign parent, to be priced at arm's length. The Indian company keeps documentation and files an accountant's report in Form 48, formerly Form 3CEB.
Used in: Company Registration in India from Chile (2026); Company Registration in India from Denmark 2026; Company Registration in India from Indonesia: Process, Cost and Timeline (2026); Company Registration in India from Israel: Process, Cost and Timeline (2026); Company Registration in India from Portugal: Process, Cost and Timeline (2026) and 12 more
The records an assessee keeps to show that international transactions are at arm's length: the parties, transactions, functions, method and comparables. Section 171 of the Income Tax Act, 2025 and rule 84 of the Income Tax Rules, 2026 require a local file above a limit of INR 1 crore. Safe harbour does not remove the duty.
Used in: Form 3CEB: Applicability, Due Date, Penalties (AY 2026-27); Safe Harbour Rules for Transfer Pricing in India (2026)
The income tax officer to whom the Assessing Officer refers international transactions for computing the arm's length price. Under the Income Tax Act, 1961 the TPO's order binds the Assessing Officer on price, while questions of business purpose stay with the Assessing Officer.
Used in: Management Fees Transfer Pricing and What Indian Courts Accept
An invoice or credit note at the year end that moves an Indian company's margin on transactions with its foreign parent to the arm's length level under sections 161 to 173 of the Income Tax Act, 2025. It must fall within the tax year it corrects.
Used in: Year End Closing Checklist for an Indian Subsidiary at 31 March
The rule in Article 4 of a DTAA that decides residence for treaty purposes when an individual is resident in both countries under their domestic laws. It tests permanent home, centre of vital interests, habitual abode and nationality in turn, then mutual agreement.
Used in: Tax Residency India 2026 for Foreign Employees and the 182 Day Rule
U
The online registration of a micro, small or medium enterprise on the Ministry of MSME's Udyam portal, based on investment in plant and machinery and turnover. Its certificate shows the enterprise type and activity, and a buyer uses it to confirm whether a supplier is micro or small under the MSMED Act, 2006.
Used in: MSME Form 1 Due Date 2026 and the 45 Day Payment Rule for Companies; Udyam Registration for Foreign-Owned Companies in India (2026 Guide)
The unique number on a Udyam certificate, in the format UDYAM-XX-00-0000000 with a state code, a district code and a seven digit serial. Banks, government buyers and corporate customers use it to confirm MSME status, and anyone can check it on the Udyam portal's verification page.
Used in: Udyam Registration for Foreign-Owned Companies in India (2026 Guide)
The earlier MSME registration system, the Udyog Aadhaar Memorandum, which Udyam registration replaced from 1 Jul 2020. Providers and search results often use MSME registration, Udyog Aadhaar and Udyam interchangeably, but Udyam registration on the official portal is the current process.
Used in: Udyam Registration for Foreign-Owned Companies in India (2026 Guide)
Control over an Indian company "in any manner", the words used in Explanation 2 to rule 6(a) of the NDI Rules. It is read to include veto rights or shareholder agreement terms, even without majority ownership. Where a land border person holds it, beneficial ownership of the investment is treated as vested in a land border country.
Used in: Press Note 3 Rules for FDI from Land Border Countries (2026)
An undesirable name is one the Registrar will not register under section 4(2)(b) of the Companies Act, 2013. Rule 8A lists the grounds, such as descriptive names, registered trade marks in the same class and words for other business forms.
Used in: Company Name Approval in India and Common Rejection Reasons
Section 102 of the Income Tax Act, 2025, which replaced section 68 of the 1961 Act. A sum credited in the books without a satisfactory explanation of its nature and source is taxed as income. For a closely held company, resident shareholders must also explain their share money.
Used in: Angel Tax Abolished in India and What Foreign Investors Still Face
A UDIN is the number a chartered accountant generates on the ICAI UDIN portal for each certificate or report signed, such as Form 48 or Form 146. The Institute of Chartered Accountants of India requires it on attest work, and the income tax portal checks the UDIN quoted in such forms against ICAI records.
Used in: Form 3CEB: Applicability, Due Date, Penalties (AY 2026-27); Tax Audit Limit 2026 and Form 26 under Section 63 for Companies
The number RBI allots, through the designated AD bank, to each foreign entity in which an Indian resident makes overseas direct investment. Regulation 9(2) of the Overseas Investment Regulations, 2022 requires it before the first remittance. The Master Direction on Overseas Investment states that a UIN records the investment and is not an RBI approval.
Used in: Annual Performance Report (APR) for Overseas Investment in 2026; ODI Rules 2022 for Indian Companies Investing Abroad in 2026
The permanent number EPFO allots to each provident fund member, which links every member ID the person holds with different employers. An Indian employee needs an active UAN and member ID to apply for a certificate of coverage on EPFO's International Workers Portal.
Used in: Social Security Agreement India 2026 and the Certificate of Coverage
A special account a company opens in a scheduled bank under section 135(6) of the Companies Act, 2013. It holds CSR money allotted to an ongoing project but not spent by the year end. The company must spend it within three financial years, or move it to a Schedule VII fund.
Used in: CSR Applicability for Foreign Owned Companies in India (2026)
A small hardware device that generates and holds the private signing key of a DSC. For a Class 3 certificate the key is generated on a module validated to FIPS 140-2 level 2, and it cannot be copied off the device.
Used in: DSC for Foreign Directors in India, Documents and Video KYC
V
The automatic end of a directorship on a ground listed in section 167(1) of the Companies Act, 2013, such as disqualification, absence from all board meetings for 12 months, or loss of the group job that led to the appointment. No resolution or resignation is needed.
Used in: Removal of Director in India, Resignation and Replacement Rules 2026
Under clause (ii) of the Explanation to rule 8(1) of the Companies (Share Capital and Debentures) Rules, 2014, the actual or anticipated economic benefits a company gets from an expert or professional who provides know how or intellectual property rights, where the consideration is not part of normal pay. It is one ground for sweat equity.
Used in: Sweat Equity Shares in India for Private and Foreign Owned Companies
The rule added to the CSRD by Directive (EU) 2026/470 (Omnibus I). A value chain company with an average of no more than 1,000 employees may decline to give a CSRD reporter more information than the voluntary standards cover. The Commission adopted those voluntary standards by delegated act on 3 Jul 2026.
Used in: BRSR Reporting in India and Foreign Owned Subsidiaries (2026)
Under SEBI's circular of 28 Mar 2025, an upstream or downstream partner that individually accounts for 2 percent or more of a listed entity's purchases or sales by value. The top 250 listed entities may disclose BRSR Core data for these partners on a voluntary basis from FY 2025-26.
Used in: BRSR Reporting in India and Foreign Owned Subsidiaries (2026)
A rule of origin test that caps the value of non originating inputs as a percentage of the ex works price or FOB value of the product. Under TEPA the cap varies by product, for example 60 or 65 percent of the ex works price, and the cap on an FOB basis is 5 percentage points lower.
Used in: India EFTA TEPA 2026: What Swiss and Norwegian Investors Should Know
The authority in the exporting country that issued the proof of origin or checks it, and that answers Indian customs' verification requests under CAROTAR rule 6. On the Indian side, CBIC Circular 38/2020-Customs makes the Director of the International Customs Division the nodal point for these requests.
Used in: Rules of Origin in India 2026: CAROTAR 2020 Guide for FTA Importers
A live, consent based video interaction in which a bank official identifies a customer and records the session. RBI's KYC Directions allow it for authorised signatories and beneficial owners of companies, but the system must block connections from IP addresses outside India.
Used in: Bank Account for a Foreign Subsidiary in India, KYC and Timeline 2026
An audio visual electronic facility that lets everyone in a meeting communicate at the same time, without an intermediary, and take part effectively. Section 173(2) of the Companies Act, 2013 and Rule 3 of the Companies (Meetings of Board and its Powers) Rules, 2014 let directors attend board meetings this way.
Used in: Board Meeting Rules Under the Companies Act for Non Resident Directors
An outsourced, part time finance lead who runs bookkeeping review, management reporting, cash flow and compliance for a company without a full time chief financial officer. Indian law does not require a private company to appoint a CFO; section 203 of the Companies Act, 2013 requires one only in listed and certain larger public companies.
Used in: Top Virtual CFO Firms in India for Startups and Foreign Subsidiaries (2026); Virtual CFO for a Foreign Subsidiary in India (2026 Guide); Virtual CFO Services Cost in India (2026)
A company's choice under rule 4(1)(i) of the Companies (Indian Accounting Standards) Rules, 2015 to apply Ind AS before any threshold requires it. Under rules 4(8) and 4(9), the choice is irrevocable and the company stays on Ind AS for all later financial statements.
Used in: Ind AS Applicability for a Foreign Owned Private Company in 2026
Voluntary liquidation is the process under section 59 of the Insolvency and Bankruptcy Code, 2016 by which a solvent company that has not defaulted closes itself. Members pass a special resolution, an insolvency professional acts as liquidator and distributes the assets, and the NCLT orders dissolution under section 59(8).
Used in: Winding Up of Company in India 2026 by Strike Off or Liquidation
W
Under section 2(y) of the Code on Wages, 2019, wages means all remuneration minus listed exclusions such as house rent allowance, conveyance and overtime. If those exclusions exceed 50 percent of total remuneration, the excess is added back to wages. Section 2(88) of the Code on Social Security, 2020 uses the same definition.
Used in: Employer of Record vs Subsidiary in India for Foreign Companies (2026); New Labour Code 2026 and What Foreign Owned Companies Must Change; New Labour Code Salary Structure and the 50 Percent Wage Rule in 2026; PF and ESI for Foreign Owned Companies and Expat Staff in 2026
The World Customs Organization's standards for securing and facilitating global trade. They set the security criteria for AEO programmes and the basis for mutual recognition. India's AEO programme, run by CBIC's Directorate of International Customs, follows this framework, as paragraph 1.22 of the Foreign Trade Policy 2023 states.
Used in: Authorised Economic Operator in India 2026: AEO Tiers and Benefits
An Indian company whose entire share capital is held by a foreign parent, directly or through a nominee. Section 2(87) of the Companies Act, 2013 defines a subsidiary by control of the board or of more than half the voting power. A Private Limited company still needs two members, so one share sits with a nominee.
Used in: Branch Office vs Subsidiary in India for a UAE Company (2026); Company Registration in India from Belgium: Process, Cost and Timeline (2026); Company Registration in India from Namibia: Process, Cost and Timeline (2026); Foreign Subsidiary Registration Process in India; India Entry Strategy for Foreign Companies (2026) and 3 more
A borrower that a bank, financial institution or other lender has declared a wilful defaulter under the Reserve Bank of India's framework. Schedule III requires a company so declared to disclose the date of declaration and the nature and amount of the defaults.
Used in: Schedule III Companies Act Format and Key Disclosures in 2026
A person employed to do manual, skilled, unskilled, technical, operational, clerical or supervisory work, under section 2(zr) of the Industrial Relations Code, 2020. It excludes people employed mainly in a managerial or administrative capacity and supervisors drawing wages above INR 18,000 a month.
Used in: Termination of Employee in India and Retrenchment Rules in 2026
A person employed for manual, skilled, technical, operational, clerical or supervisory work, under section 2(1)(zzl) of the OSH Code, 2020. It excludes people employed mainly in a managerial or administrative capacity and supervisors earning more than INR 18,000 a month or a notified higher amount.
Used in: Working Hours Under the Labour Code with Overtime and Leave in 2026
A fund the appropriate government sets up under section 83 of the Industrial Relations Code, 2020. The employer pays 15 days' last drawn wages for each retrenched worker, and the fund credits that amount to the worker within 45 days of retrenchment for reskilling.
Used in: Termination of Employee in India and Retrenchment Rules in 2026
X
The dictionary of tags and rules against which an XBRL file is prepared. The XBRL Rules, 2015 prescribe a Commercial and Industrial (C&I) taxonomy for companies on the Accounting Standards of 2006 and an Ind AS taxonomy for companies on Ind AS, as Annexures II and II A.
Used in: XBRL Filing in India and Which Companies Must File AOC-4 XBRL (2026)
Y
An expense a company books at 31 March for goods or services received but not yet invoiced or paid. Section 393(11) of the Income Tax Act, 2025 treats a credit to a provision or suspense account as a credit to the payee, so TDS applies when the provision is booked.
Used in: Year End Closing Checklist for an Indian Subsidiary at 31 March
Z
A zero rated supply is an export, or a supply to a Special Economic Zone unit or developer for authorised operations, under section 16 of the IGST Act, 2017. The supplier keeps its credit and either supplies under bond or letter of undertaking with a refund of unused credit, or, where permitted, pays IGST and claims it back.
Used in: GST Input Tax Credit Rules Explained (2026); GST on Export of Services from India: Zero-Rated Rules & LUT; GST Refund for Exporters of Services Under LUT with RFD-01 (2026); LUT Filing for Exporters Under GST: Guide (2026); Top GST Registration and Filing Services in India for Foreign Owned Businesses (2026)
The part of Maharashtra covering the Mumbai and Pune Metropolitan Regions. The IT and ITES Policy 2023 limits it to their municipal corporation areas. Under the GCC Policy 2025, Zone 1 units get lower rent, salary and power subsidies than units elsewhere in the state.
Used in: Best City in India for a Tech Company in 2026: Four Hubs Compared
#
The first proviso to section 2(y) of the Code on Wages, 2019. If payments under clauses (a) to (i), such as bonus, HRA, conveyance, employer PF, overtime and commission, exceed one half of total remuneration, the excess counts as wages for statutory purposes.
Used in: New Labour Code Salary Structure and the 50 Percent Wage Rule in 2026
Under FEMA 395/2019-RB, an Indian company must issue shares to a foreign investor within 60 days of receiving the money. If it does not, it must refund the money within the next 15 days.
Used in: How Much Authorised Capital a Foreign Subsidiary Needs: Our View
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