Key takeaways
- Sapin II: evaluate Indian suppliers and intermediaries according to your risk map.
- Duty of vigilance: cover Indian subcontractors and suppliers in the vigilance plan.
- India–France treaty: generally 10% on dividends, interest, royalties; MFN needs notification.
Why companies from here use us
- French industrial, aerospace, energy, luxury and technology groups keep adding Indian suppliers and partners.
- Sapin II and duty-of-vigilance files need documented, verifiable findings on third parties, not just a questionnaire the partner fills in.
- India is 3.5 to 4.5 hours ahead of France, so calls fit comfortably in the French working day.
Your home-country rules — and what they mean for an Indian partner
- Sapin II (law of 9 December 2016): companies with at least 500 employees and turnover above €100 million (including on a group basis) must run an anti-corruption programme. One of its pillars is the evaluation of third parties: customers, first-tier suppliers and intermediaries, according to the risk map. The AFA checks these programmes.
- Duty of vigilance (law of 27 March 2017): companies with at least 5,000 employees in France, or 10,000 worldwide, publish a vigilance plan covering serious risks to human rights, health and safety and the environment in their own operations, subsidiaries, and subcontractors and suppliers they have an established relationship with.
- EU rules coming: the EU due diligence directive (CSDDD) will apply from 2029 after national transposition.
- What that means in India: documented checks on Indian agents, distributors, customs brokers and suppliers: who owns them, government links, how intermediaries are paid, and labour and environmental practices on site. See supplier verification and India’s anti-bribery law.
The India side
- India–France tax treaty: Indian tax on dividends, interest, royalties and fees for technical services is generally limited to 10%. The “most favoured nation” clause does not apply automatically: India’s Supreme Court held in 2023 (Nestlé SA) that it needs a separate notification.
- Setting up in India: the resident director rule · India entry · start with an India Company Check on one company.
- Brands entering India: franchise, licence or own stores. Exporting to the EU: EUDR and CBAM data from Indian suppliers.
- In French: page en français. Planning India? Book a free 15-minute call.
What we check for you in India
- Identity, registrations and filed financial statements of the Indian partner — how it works.
- Financial, tax and FEMA review; related parties; litigation through public records and counsel.
- Promoters, directors, government links and how intermediaries are paid — for your anti-bribery and supply-chain files.
- Premises visits from Ahmedabad, Mumbai, Bengaluru, Rajkot or Dubai, with a written report in English.
- Full scope: partner due diligence · investment due diligence · supplier verification.
We are Chartered Accountants, not lawyers: home-country legal advice on compliance programmes stays with your counsel. Our reports are built to slot into their files.
Sources
- Legifrance: Loi n° 2016-1691 (Sapin II)
- Legifrance: Loi n° 2017-399 (devoir de vigilance)
- Agence française anticorruption (AFA)
Frequently asked questions
Who can do due diligence on an Indian company for a French company?
CA Durgesh Chavda's team checks Indian partners, suppliers and targets for French companies: records, financials, tax, FEMA, ownership, promoters, government links and premises, with a written report in English suited to Sapin II and duty-of-vigilance files.
Does Sapin II require due diligence on Indian suppliers?
For companies in scope (at least 500 employees and over EUR 100 million turnover), Sapin II requires evaluating third parties such as first-tier suppliers and intermediaries according to the risk map. Indian suppliers and agents in higher-risk categories need documented checks.
What is the withholding tax on royalties from India to France?
Under the India–France tax treaty, Indian tax on royalties and fees for technical services is generally 10%, provided the French company gives a tax residency certificate and the required declaration. The treaty's most favoured nation clause needs a separate Indian notification to apply.