Form FC-4 – Annual Return for Foreign Companies in India: A Comprehensive Guide
- 13/03/2025
- Posted by: admin
- Categories: Company Law, Non Residents
Introduction
Foreign companies operating in India are subject to various compliance requirements under the Companies Act, 2013. One such essential compliance is filing Form FC-4 – Annual Return for Foreign Companies. This form ensures that foreign entities maintain transparency and adhere to regulatory guidelines set by the Ministry of Corporate Affairs (MCA).
In this blog, we will explore the purpose, eligibility, filing procedure, due date, penalties, and key considerations for Form FC-4.
What is Form FC-4?
Form FC-4 is an Annual Return that foreign companies operating in India must file with the Registrar of Companies (ROC). This form provides detailed information about the foreign company’s operations, financials, and compliance status in India.
Applicable Law:
☛ Governed under Section 384(2) of the Companies Act, 2013
☛ Read with Rule 7 of the Companies (Registration of Foreign Companies) Rules, 2014
Who Needs to File Form FC-4?
Any foreign company that has established a place of business in India must file Form FC-4 annually. The definition of a foreign company under the Companies Act, 2013 includes:
☛ Companies incorporated outside India
☛ Companies conducting business in India via branches, agents, or offices
☛ Companies engaged in business through digital means or liaison offices
Purpose of Filing Form FC-4
Filing Form FC-4 serves several key purposes:
☛ Regulatory Compliance: Ensures compliance with the Companies Act, 2013.
☛ Transparency: Provides an overview of the company’s business operations in India.
☛ Government Monitoring: Helps MCA track the presence and activities of foreign companies in India.
☛ Legal Safeguards: Avoids penalties and legal consequences for non-compliance.
Due Date for Filing Form FC-4
Foreign companies must file Form FC-4 within 60 days from the close of the financial year. Since the financial year in India ends on March 31, the due date for filing Form FC-4 is generally May 30 of each year.
Details Required in Form FC-4
While filing Form FC-4, the following details are required:
☛ Company Details: Name, Registration Number (CIN), and country of incorporation.
☛ Principal Place of Business in India: Address and contact information.
☛ Shareholding Structure: Details of shareholders and capital.
☛ Financial Statements: Profit and Loss Statement, Balance Sheet, and other financial details.
☛ Directors and Key Personnel: List of directors and key executives managing Indian operations.
☛ Business Activities: Description of business activities carried out in India.
☛ Other Compliance Details: Information about regulatory approvals and compliance status.
Step-by-Step Guide to Filing Form FC-4
Filing Form FC-4 is a straightforward process if done correctly. Follow these steps:
Step 1: Prepare Necessary Documents
Ensure the following documents are ready:
☛ Audited financial statements (Balance Sheet, P&L Statement)
☛ List of directors and shareholders
☛ Company’s Indian business details
☛ Any regulatory approvals obtained
Step 2: Log in to MCA Portal
☛ Visit the MCA Website
☛ Log in using valid credentials
Step 3: Download and Fill Form FC-4
☛ Navigate to Forms & Downloads section
☛ Select Form FC-4 and download it
☛ Fill in the required details carefully
Step 4: Attach Supporting Documents
Attach scanned copies of necessary documents in PDF format.
Step 5: Verify and Pre-Scrutiny
☛ Use the MCA portal’s pre-scrutiny function to check errors
☛ Ensure all information is accurate
Step 6: Submit and Pay Fees
☛ Submit the form online
☛ Pay the applicable government fees
Step 7: Acknowledgment
After submission, you will receive an SRN (Service Request Number) and an acknowledgment email.
Fees for Filing Form FC-4
The government fees for filing Form FC-4 depend on the company’s share capital:
☛ Up to Rs. 1 lakh: Rs. 200
☛ Rs. 1 lakh – Rs. 5 lakh: Rs. 300
☛ Rs. 5 lakh – Rs. 25 lakh: Rs. 400
☛ Above Rs. 25 lakh: Rs. 600
Penalty for Late Filing of Form FC-4
Failure to file Form FC-4 within the due date attracts penalties:
☛ Foreign Company: Fine up to Rs. 50,000
☛ Continuing Default: Additional fine of Rs. 1,000 per day
It is advisable to file the form on time to avoid penalties and legal complications.
Common Mistakes to Avoid While Filing Form FC-4
☛ Incorrect Financial Data: Ensure accurate reporting of financials.
☛ Missed Deadline: File within 60 days to avoid penalties.
☛ Improper Document Attachments: Ensure required documents are in the correct format.
☛ Incomplete Information: Cross-check all sections before submission.
Conclusion
Filing Form FC-4 is a crucial compliance requirement for foreign companies operating in India. Proper and timely filing ensures smooth business operations and avoids penalties. If you are unsure about the process, it is advisable to seek professional help from our team of Company Secretary (CS) or Chartered Accountant (CA).
For more updates on corporate compliance and filings, stay connected with us!
FAQs on Form FC-4
Q1: Who is required to file Form FC-4? A: Any foreign company having a business presence in India must file Form FC-4 annually.
Q2: What is the due date for filing Form FC-4? A: Form FC-4 must be filed within 60 days from the end of the financial year, i.e., by May 30.
Q3: What are the consequences of late filing? A: Late filing attracts a penalty of Rs. 50,000, plus Rs. 1,000 per day for continued delay.
Q4: Can Form FC-4 be revised after submission? A: No, once submitted, it cannot be revised. Ensure accuracy before filing.
Q5: Where can I download Form FC-4? A: Form FC-4 is available for download on the MCA website (www.mca.gov.in).
By following these guidelines, foreign companies can ensure seamless compliance with MCA regulations in India. If you need assistance with filing Form FC-4, consult an expert today!