The service-specific risk to address first
Unplanned inward remittances or unsupported valuation records can complicate subsequent reporting.
An overseas software company opening in Mumbai should map customer contracts, funding and transfer-pricing needs together.
Mistake 1: assuming the same rule applies to everyone
An Indian subsidiary setup begins with sectoral investment eligibility, not just incorporation forms.
Entity type, business activities, transaction facts and the relevant period can change the answer. Before using a checklist or a headline rule, ask which facts make it applicable to you. Verify current official requirements rather than copying an old article.
Mistake 2: sending records that do not reconcile
Prepare parent-company records, authorised resolutions, overseas signatory evidence and Indian-office proof.
Flag mismatches and missing items before the adviser starts. Never overwrite an original record simply to make totals match. Preserve an explanation of corrections so the final position can be traced back to its evidence.
Mistake 3: confusing one task with full compliance
Separate incorporation from FEMA reporting, transfer pricing, tax advice and ongoing statutory compliance.
An incorporation, registration, return or report is a particular deliverable. Other permissions, recurring obligations and implementation work may remain. Ask for a written list of what the engagement does not cover.
What to do if work is already wrong
Preserve the original submission or report and ask for an assessment of the available correction route. Do not submit a duplicate application or ignore a communication without checking the consequences. Identify the issue, relevant period and supporting evidence.
Who coordinates the bank, investment reporting and the parent-company documentation?
Keep ownership records, banking evidence and a schedule of applicable cross-border reporting.
How to use this resource
