Foreign Subsidiary refers to a business that is located in a country other than the parent company. A subsidiary company is controlled by its parent or holding company. The parent company may be the majority shareholder of the subsidiary company or it has a greater representation on its board of directors. The foreign subsidiary organizations are obligatorily required to keep up consistency according to the Income Tax Act, Companies Act, exchange evaluating rules and FEMA rules. Thus, keeping up consistency for an outside auxiliary organization would incorporate documenting of wage expense form with the Income Tax Department, yearly come back with the Ministry of Corporate Affairs and different filings with specialists like Reserve Bank of India or Securities and Exchange Board of India (SEBI). At long last, similar to all organizations, outside auxiliaries would likewise need to follow other Indian duty directions like TDS controls, GST controls, VAT/CST directions, Service Tax controls, ESI directions and others. The consistence prerequisite for an outside backup organization would differ in view of the business, condition of fuse, number of workers and deals turnover.