Is a statutory audit mandatory for every India subsidiary, regardless of size?

Unlike some jurisdictions where small or dormant companies can skip an audit, Indian company law requires a statutory audit for every private limited company from its first financial year, even one with zero revenue or a single transaction on its books. The auditor must be appointed within 30 days of incorporation, and the statutory audit report, along with the audited financial statements, is filed with the Registrar of Companies as part of the annual compliance cycle.

Beyond the statutory (company law) audit, an India subsidiary may face additional audit requirements depending on its circumstances: a tax audit under the Income Tax Act if turnover crosses the prescribed threshold, a transfer pricing audit (Form 3CEB certification) if it has international related-party transactions, and a GST audit or reconciliation statement depending on turnover. These are separate exercises from the statutory audit, often performed by the same audit firm but covering different compliance requirements — budgeting for all applicable audits, not just the statutory one, avoids surprises at year-end.