✅ Seamless Foreign Exchange Compliance for Indian Businesses

With increasing globalization, Indian businesses are actively engaging with foreign investors, clients, and subsidiaries. However, any foreign exchange transaction—whether inward or outward—must comply with the provisions of the Foreign Exchange Management Act (FEMA) and the rules framed by the Reserve Bank of India (RBI).

At [Your Company Name], we offer expert FEMA & RBI Compliances services to ensure all your foreign investment, remittance, and cross-border transactions are fully aligned with the latest legal framework. Our services help startups, private limited companies, NBFCs, export/import firms, and foreign companies operating in India stay compliant with the dynamic FEMA & RBI Compliances environment.

 

📌 Scope of Work – FEMA & RBI Compliances

Our FEMA & RBI Compliances services cover a wide range of regulatory requirements, including inbound and outbound investments, reporting, and transaction structuring.

🔹 Foreign Direct Investment (FDI) Compliance

• Assistance with automatic and approval route FDI

• Preparation and filing of FC-GPR on RBI FIRMS Portal

• Share allotment and valuation compliance

• Annual Return on Foreign Liabilities and Assets (FLA Return)

🔹 Foreign Remittance & Repatriation

• Advisory on inward and outward remittances

• RBI approval for repatriation of profits/dividends

• Bank coordination and documentation for foreign payments

🔹 Transfer of Shares to Non-Residents

• Drafting and filing of FC-TRS form

• Pricing compliance and documentation

• Due diligence and share transfer agreements

🔹 External Commercial Borrowings (ECB)

• Structuring and compliance for ECBs

• LRN (Loan Registration Number) application

• Monthly reporting through ECB-2 return

🔹 Overseas Direct Investment (ODI)

• ODI structuring under automatic or approval route

• Filing of ODI Part I, Part II, APR and other forms

• Liaising with AD banks and RBI approvals

🔹 Other FEMA & RBI Compliances

• Liaison office/branch office setup compliance

• Compounding of FEMA contraventions

• End-use certification for funds

• Filing of Form CN for convertible notes

• FEMA compliance audits and health checks

 

🔄 FEMA & RBI Compliances Process

We follow a robust and compliance-driven process to ensure all foreign exchange transactions are handled legally and accurately:

1 Initial Consultation

• Understand the nature of the foreign transaction

• Determine applicable FEMA/RBI regulations and required filings

2 Structuring & Documentation

• Drafting agreements, declarations, CA/CS certificates

• Support in valuation reports (in case of FDI or FC-TRS)

3 Bank Liaising

• Coordinate with the Authorised Dealer (AD) bank

• Prepare KYC and remittance advice documentation

4 Form Preparation & Filing

• Prepare and file relevant forms: FC-GPR, FC-TRS, ODI, ECB, FLA

• Generate acknowledgement from RBI FIRMS portal

5 Post-Filing Support

• Record maintenance, follow-up queries, or clarifications

• Reporting updates and statutory registers

6 Annual Compliance Management

• FLA return, APR for ODI, ECB returns

• FEMA audit and quarterly reviews

 

🏢 Who Needs FEMA & RBI Compliances?

• Indian companies receiving FDI or issuing shares to foreigners

• Startups raising capital through convertible notes or SAFE notes

• Businesses making outbound investments or loans to foreign entities

• Companies availing ECB (External Commercial Borrowings)

• Firms making royalty, dividend, or technical service payments abroad

• Foreign companies setting up operations in India

 

✅ Why Choose Us for FEMA & RBI Compliances?

• ⚖️ Expert knowledge of FEMA, RBI Circulars, and Foreign Exchange Laws

• 📝 Seamless preparation and filing of RBI forms and reports

• 🤝 Liaison with AD Banks and RBI officials

• 📈 Strategic advisory for cross-border structuring

• 📂 100% Confidentiality and Transparent Pricing

• 🔄 Ongoing support for Annual FEMA Compliances

 

❓ Frequently Asked Questions (FAQs) – FEMA & RBI Compliances

1. What is FEMA Compliance in India?

FEMA compliance refers to adhering to the Foreign Exchange Management Act, 1999, which governs all cross-border financial transactions involving foreign currency.

2. What is the role of RBI in FEMA Compliances?

RBI is the primary regulator overseeing FEMA transactions and ensures that companies comply with exchange control regulations.

3. What is FC-GPR and when is it filed?

FC-GPR (Foreign Currency-Gross Provisional Return) must be filed within 30 days of issuing shares to a foreign investor.

4. What is FC-TRS form used for?

FC-TRS is used when existing shares are transferred between a resident and a non-resident, either by sale or gift.

5. What is an FLA Return?

FLA (Foreign Liabilities and Assets) return is an annual return that Indian companies must file if they have received FDI or made ODI.

6. Can any company receive foreign investment under FEMA?

Yes, subject to sectoral caps, pricing guidelines, and adherence to automatic or approval routes as per the FDI Policy.

7. What is ECB in FEMA?

External Commercial Borrowings (ECBs) are commercial loans raised by Indian entities from foreign lenders. FEMA governs their usage, tenure, and compliance.

8. Do startups raising from foreign investors need FEMA compliance?

Yes. Startups must file Form CN for convertible notes and comply with FEMA pricing and KYC norms.

9. What is ODI under FEMA?

Overseas Direct Investment is when an Indian company invests in a joint venture (JV) or wholly owned subsidiary (WOS) abroad, and it requires RBI reporting.

10. What is the penalty for non-compliance with FEMA?

FEMA non-compliance can result in a penalty of up to 3 times the sum involved, and continued default can attract additional legal consequences.

11. Is valuation required under FEMA compliance?

Yes. Issuance or transfer of shares to a non-resident requires valuation by a registered valuer or merchant banker.

12. Who is an Authorized Dealer (AD) Bank?

An AD Bank is an RBI-approved bank authorized to deal in foreign exchange and route remittances and RBI filings.

13. What is the timeline for filing FC-GPR?

FC-GPR must be filed within 30 days of allotment of shares to a non-resident.

14. Can FEMA contraventions be regularized?

Yes, through compounding by RBI under FEMA. We assist in preparing compounding applications and representations.

15. What is Form CN in FEMA?

Form CN is a FEMA form required to be filed by startups issuing Convertible Notes to foreign investors.

16. Is it mandatory to file the FLA return even if there is no change in shareholding?

Yes. If a company has received FDI or made ODI—even with no change—it must file the FLA return annually.