Cost Audit › Foreign Companies
Cost Audit for Foreign Companies: Same Rules, Cross-Border Complexity
If your company manufactures or provides services in India and meets the sector and turnover tests, cost audit applies exactly as it would to an Indian company — the difference is in navigating it from outside India.
Overview
Do Foreign Companies Need a Cost Audit in India?
Foreign companies as defined under Section 2(42) of the Companies Act — companies incorporated outside India that have a place of business here, whether directly or through an agent — are covered by the same cost record and cost audit thresholds as Indian companies, provided they manufacture goods or provide services in a Rule 3 sector and cross the applicable turnover thresholds.
Who Needs This
Which Foreign Entities Should Check
Foreign companies with Indian operations
Manufacturing subsidiaries in India
Joint ventures with foreign parents
Liaison and branch offices in regulated sectors
Cross-Border Specifics
What's Different for Foreign Companies
Same Thresholds, Same Rules
Turnover and sector tests apply identically to foreign and Indian companies
English-Language Filing
CRA-3 and CRA-4 are prepared and filed in English regardless of the parent company's home jurisdiction
Structure matters
Whether a foreign entity is registered as a "foreign company" under Sections 379–393, or operates through an Indian subsidiary incorporated locally, changes how compliance is structured — we assess this as the first step.
Why It Matters
Why Foreign Companies Rely on Local Specialists
Avoid cross-border compliance gaps
Local sector and turnover rules aren't always obvious to an overseas finance team.
English-language reporting
All communication and filings are handled in English, start to finish.
Time zone-friendly coordination
We work around your headquarters' hours for approvals and sign-offs.
Structure-aware advice
Applicability is assessed correctly for your specific entity structure in India.
MCA relationship handled locally
Filings, queries and correspondence with the MCA are managed on the ground.
Cost benchmarking against local peers
Foreign manufacturers get cost visibility relative to Indian sector norms.
How It Works
How We Support Foreign Companies
A process built for coordinating across time zones and entity structures.
Start My Foreign Entity ReviewEntity structure review
We confirm whether you operate as a registered foreign company, subsidiary, or joint venture.
Sector & turnover assessment
Your India operations are tested against Rule 3 and Rule 4.
Local auditor appointment
A cost auditor is appointed and CRA-2 filed on your behalf.
Audit execution & reporting
The cost audit and CRA-3 report are prepared in English, ready for HQ review.
CRA-4 filing
The report is filed with the MCA in XBRL format within the statutory window.
Before You Start
Documents We Typically Need
India entity financial statements
Registration/incorporation documents
Corporate structure chart
Parent company details
Sector Coverage
Industries We Serve
Why SSCOIndia
Why Foreign Companies Choose SSCOIndia
ICMAI Cost Accountants
Written compliance position
Fast, no-obligation review
PAN India, foreign entities too
Questions
Frequently Asked Questions
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