India–EFTA Trade and Economic Partnership Agreement (TEPA) (Effective 1st October 2025): A Game-changer for Indian Businesses
The global trade landscape is shifting, and India has just opened a new gateway to Europe. On 1st October 2025, the India–EFTA Trade and Economic Partnership Agreement (TEPA) comes into effect, marking India’s first trade pact with a European bloc. The European Free Trade Association (EFTA) includes Switzerland, Norway, Iceland, and Liechtenstein nations known for strong economies, advanced technologies, and high purchasing power. This TEPA promises reduced tariffs, investment inflows, and expanded market opportunities for Indian businesses. At Comply Globally, we specialize in Compliance and EXIM Advisory, ensuring businesses can fully leverage such international agreements. Benefits for Indian Exporters Import Advantages for Indian Investment Commitments from EFTA Challenges for Businesses How Comply Globally an Initiative of Connect Ventures Inc. Helps Businesses Navigate the TEPA At Comply Globally, we provide end-to-end support for businesses aiming to leverage this trade agreement: Conclusion The India–EFTA Trade and Economic Partnership Agreement (TEPA) is a gateway for Indian businesses into Europe. With lower tariffs, increased investments, and new opportunities in services and goods, this pact is set to reshape India’s global trade presence. At Comply Globally. – Your Globalization Partner, we help companies stay compliance-ready and globally competitive. Reach out to us today to unlock the full benefits of this landmark agreement. Suggested SEO Keywords:
Understanding Audits for APR Filing: A Practical Guide for Indian Overseas Investors
If you’ve made overseas investments as an Indian entity whether it’s a wholly-owned subsidiary in Singapore, a joint venture in the UAE, or a holding company in the United States you’re likely aware of a regulatory obligation known as the Annual Performance Report (APR). Filed under the Foreign Exchange Management Act (FEMA), this report plays a crucial role in the RBI’s monitoring of outbound investments. However, what’s often misunderstood or underestimated is the audit component of this report. And more importantly, the consequences of getting it wrong or worse, ignoring it altogether. Let’s demystify what the APR is, why the audit requirement matters, and how Indian investors can navigate it confidently, without last-minute stress APR in Simple Terms: What’s It All About? Think of the APR as a yearly financial health certificate of your foreign investment. It needs to be submitted to your Authorized Dealer (AD) Bank, essentially your RBIlicensed bank that manages forex compliance by December 31st of each year. It captures a snapshot of your overseas entity’s performance: assets, liabilities, profits, losses, and any changes in shareholding or repatriation of funds to India. But here’s what many entrepreneurs and CFOs overlook: an APR is not just a formfilling exercise. It’s a regulatory audit trail. And the RBI doesn’t take non-compliance lightly. Why Does the Audit Matters More Than You Think? \ Here’s where the confusion usually begins. As per revised FEMA guidelines, if you have “control” over the foreign entity, that is, if you own the majority shares or have the power to appoint directors you’re expected to submit an audited financial statement of that overseas entity along with your APR. This isn’t just red tape. An audit is a formal, professional confirmation that the numbers you’re reporting are legitimate, verified, and free from material errors. It adds a layer of accountability not just to your APR, but also to your cross-border credibility. Even if your host country doesn’t mandate an audit, the RBI expects Indian stakeholders to follow a higher standard if control is held. That means arranging a third-party audit in that foreign jurisdiction or alternatively, having a chartered accountant in India certify those foreign financials, in certain qualifying scenarios. And here’s the tricky part: this has to be sorted before December 31st. Waiting until Q4 will almost certainly lead to frantic coordination across time zones, late-night document chasing, and potential compliance lapses. RBI’s Intent Behind the Audit Requirement The Reserve Bank of India’s intent is not to burden businesses with paperwork. Rather, it’s to create a reliable mechanism to monitor India’s outward foreign investments. In a world where global compliance risks can lead to blacklisting or fund loss, the APR provides RBI and other regulatory bodies with data points that enable proactive intervention, if needed. Having audited or certified financials gives regulators confidence that outbound flows are being used for genuine business activity and not for tax evasion, money laundering, or other high-risk exposures. Procrastination Comes at a Cost Many companies miss their APR deadline simply because the foreign audit was not initiated in time. In some cases, they assume they’re exempt only to learn late in the process that they actually qualify under the “control” definition. Non-filing or incorrect filing can result in compounding penalties under FEMA, delayed future investments, and loss of reputation with the AD Bank or RBI. Worse, it can attract scrutiny that impacts unrelated business transactions. Let Boutique Compliance Experts Do the Heavy Lifting The Good News? You don’t have to navigate this alone. Boutique compliance firms like Connect Ventures specialize in precisely this type of cross-border complexity. Whether your company is registered in the U.S., Canada, Singapore, the UK, or Dubai, we can help arrange foreign audits, validate financials, and file your APR correctly well ahead of the deadline. Unlike large audit firms that treat this as a minor filing task, we understand the strategic importance of accurate reporting. Our team is well-versed in host-country compliance, and we work with RBI-compliant Indian professionals to close the loop at home. It’s not just paperwork; it’s strategic governance Don’t Wait Until December! If you’ve invested overseas or plan to do so, treat the APR as a year-long responsibility, not a year-end obligation. Start by gathering your financials, identifying audit obligations based on your shareholding/control, and engaging a professional to guide you through the nuances. The earlier you begin, the smoother the process. And with the right partner by your side, compliance becomes a value-driver not a pain point. Need Help With APR Filing or Foreign Entity Audits? Connect Ventures can help you prepare and file APRs, arrange foreign audits, and manage FEMA compliance no matter where your business is incorporated globally. Talk to our cross-border experts today. ✍️ Author: Dr. Anil Gupta, Chairman, Connect Ventures Group of Companies
Why Your Foreign Subsidiary’s Audit Matters for RBI Compliance: A Guidefor Indian Businesses.
Why Your Foreign Subsidiary’s Audit Matters for RBI Compliance If you’re an Indian company with a presence abroad through a joint venture or subsidiary you’ve probably heard about the Annual Performance Report (APR) you need to file with the Reserve Bank of India. On paper, it seems like just another yearly report. But it’s not something to take lightly, especially if you want to stay on the right side of the RBI and FEMA regulations. The APR essentially tells Indian regulators how your overseas investment is performing. That includes financial health, ownership patterns, retained earnings, and whether the foreign entity is operating as declared. It’s mandatory each year, and poor documentation or missed filings can result in penalties or trigger deeper scrutiny. One crucial requirement is that this report be based on audited financials unless your investment is non-controlling and below 10% equity. And those audits aren’t just a rubber stamp. They require expertise. It’s Not Just About Format It’s About Interpretation Different countries follow different accounting standards. The way deferred tax, revenue recognition, or asset valuation is handled in one country may not align with Indian practices. And when the APR is filed, the RBI expects clarity. This is where a Certified Public Accountant (CPA) or host-country compliance expert comes in. They understand local financial reporting whether it’s US GAAP, IFRS, or something more regional and can ensure that your reports are translated accurately into terms the RBI will accept. It’s not enough to “just get it done.” The nuances matter, and getting them wrong can delay approvals or raise red flags. Audits Build a Trail That the RBI Can Trust The RBI isn’t only interested in profit/loss numbers it wants assurance that the data submitted is reliable and independently verified. A local audit offers that assurance. Even if your foreign jurisdiction doesn’t mandate an audit, having one done (or at least having the financials reviewed) by a qualified host-country professional strengthens your compliance posture. It shows that you take reporting seriously and are prepared for any questions down the line whether from regulators, banks, or potential investors. Are You Exempt? Not Always That Simple There are exemptions. If your investment abroad is passive defined typically as less than 10% equity and no control you may be allowed to file the APR with unaudited financials. But there’s a catch: these unaudited numbers must still be certified by your Indian statutory auditor or a Chartered Accountant. In reality, these exceptions aren’t loopholes, they’re narrow allowances. If the RBI later finds inconsistencies, the absence of an independent review could work against you. In most cases, it’s simply safer and cleaner to rely on professional validation. The Takeaway The Annual Performance Report isn’t a routine checkbox, it’s a critical part of maintaining compliant, transparent international operations. Partnering with a CPA or a qualified professional in the foreign jurisdiction ensures the financials you’re submitting are accurate, interpreted correctly, and meet the RBI’s standards. Whether you’re scaling abroad or maintaining an existing setup, this is not an area where shortcuts pay off. A thoughtful investment in the right audit partner today can prevent delays, penalties, or lost opportunities in the future. 👤 Author: Dr. Anil Gupta, Chairman Connect Ventures Group of Companies Specializing in cross-border structuring and RBI/FEMA regulations. Connect Ventures Inc is a US headquartered Global Compliance company for Cross Border Businesses helping businesses to register companies in 40+ Countries (including USA, UK, UAE, Singapore, Canada, etc), Taxation of Various Countries and secretarial compliance for host jurisdiction.
Decoding the “Big Beautiful Bill”: A Boon for Indian-Owned Businesses in the USA?
The dust has barely settled on Capitol Hill following the Senate’s narrow passage of President Trump’s “One Big Beautiful Bill,” yet its ripples are already being felt across the American economic landscape. While much of the initial public discourse revolved around its sweeping changes to healthcare and immigration, a closer look reveals a silver lining for Indian-owned businesses operating in the U.S. Far from being just another legislative behemoth, this bill offers some tangible advantages that, if navigated wisely, could unlock significant growth and financial stability. Let’s peel back the layers and discover how shrewd Indian entrepreneurs in the U.S. can leverage these new provisions. The Foundation of Stability: Permanent Tax Cuts Perhaps the most significant gift bestowed by the “Big Beautiful Bill” upon the business community is the permanent extension of many of the 2017 tax cuts, including the reduced corporate tax rate. For years, businesses have operated with a degree of uncertainty, knowing that these beneficial rates had an expiration date looming. Now, that cloud has lifted. Why this matters to you: Imagine building a house on shifting sands versus solid ground. Permanent tax cuts provide that solid ground. For Indian-owned businesses, whether established giants or nimble startups, this translates into long-term predictability in financial planning. You can now forecast your tax liabilities with far greater accuracy, freeing up capital that might otherwise have been held back for future tax increases. The Insightful Tip: Don’t just celebrate this permanence; actively integrate it into your long-term strategic planning. Consider reinvesting these sustained savings into talent acquisition, research and development, or expanding your market reach. This isn’t just a temporary reprieve; it’s a foundational shift. Unlocking Growth: New Deductions and Write-Offs Beyond the headline-grabbing corporate rate, the bill introduces a suite of new temporary tax breaks and enhanced deductions that are particularly potent for growing businesses. For instance, the introduction of no taxes on tips or overtime pay might seem like a small detail, but its impact can be surprisingly broad. While primarily aimed at stimulating consumer spending, businesses in service industries (think restaurants, hospitality, or even some retail) that rely on tipped or overtime labor could see a subtle shift in their operational costs. A happier, potentially more productive workforce, alongside minor cost reductions, can add up. The Direct Play: However, the real power lies in the expanded business tax deductions. The bill allows businesses to immediately write off 100% of equipment and research costs, and significantly increases the Section 179 deduction cap. This is a game-changer for businesses looking to innovate and expand. Investing in the Future: Want to upgrade your manufacturing facility with cutting-edge machinery? Looking to invest heavily in a new R&D project to stay ahead of the curve? This provision allows you to deduct the full cost of these investments in the year they are made, dramatically reducing your taxable income in the short term. This isn’t just about saving money; it’s about accelerating your technological adoption and competitive edge. Boost for Startups and Scale-ups: For newer Indian-owned businesses, this immediate write-off can be particularly impactful, as it allows them to quickly offset the significant upfront costs associated with getting off the ground or scaling operations. The Indirect Benefit (and a tip): Think beyond just tangible equipment. Investing in cybersecurity infrastructure, advanced software, or even ergonomic office equipment could fall under these beneficial deductions. Tip: Review your capital expenditure plans for the next year. Can you accelerate any planned investments to take full advantage of these immediate write-offs? Consult with your financial advisor to strategize. The Pass-Through Powerhouse: QBI Deduction Amplified Finally, a provision that will resonate deeply with many small and medium-sized Indian-owned businesses in the U.S. is the increase in the Section 199A Qualified Business Income (QBI) deduction to 23% and its newfound permanence. Understanding the ‘Why’: A vast number of small and medium-sized businesses, including many Indian-owned ventures, operate as “pass-through entities” – think sole proprietorships, partnerships, S corporations, and LLCs. This means the business income “passes through” directly to the owners’ personal tax returns, where it’s taxed at individual income tax rates. The QBI deduction allows these owners to deduct a percentage of their qualified business income, effectively lowering their personal tax burden on that income. The Golden Opportunity: By increasing this deduction to 23% and making it permanent, the bill provides a substantial and lasting tax break for these entrepreneurs. It acknowledges the vital role these businesses play in the economy and offers a direct incentive for their growth and profitability. The Actionable Advice: If your business is structured as a pass-through entity, now is the time to thoroughly understand how this enhanced QBI deduction applies to your specific situation. Work with your tax professional to ensure you are maximizing this benefit. It could mean significantly more after-tax income for you as a business owner, allowing for personal investment, business expansion, or simply greater financial security. The “One Big Beautiful Bill,” for all its complexities and controversies, offers a clear set of advantages for Indian-owned businesses in the U.S. From foundational tax stability to immediate write-offs and enhanced deductions for pass-through entities, savvy entrepreneurs have new tools at their disposal. The key is not just to be aware of these provisions, but to actively strategize and adapt to them. By doing so, you can transform a legislative act into a catalyst for your business’s continued growth and prosperity in the American market.
