Cross-border transactions, fully compliant
FEMA Compliance & Advisory
Every cross-border investment, remittance, or borrowing touching India is governed by the Foreign Exchange Management Act. Our FEMA practice handles the complete spectrum — FDI reporting on the RBI FIRMS portal, overseas investment filings, ECB compliance, annual FLA returns, and compounding of past contraventions — so your global transactions stay fully compliant with RBI regulations.
What We Cover
- FDI reporting — FC-GPR, FC-TRS on FIRMS portal
- Annual FLA return filing
- Overseas Direct Investment (ODI) filings
- External Commercial Borrowing (ECB) compliance
- Compounding of FEMA contraventions
- NRI property and remittance advisory
- Liberalised Remittance Scheme (LRS) guidance
- FEMA due diligence for transactions
Our FEMA Advisory Services Include
FDI Reporting & Compliance
Reporting of inward remittances and share allotments via FC-GPR within 30 days, FC-TRS for transfer of shares between residents and non-residents, and adherence to sectoral caps and pricing guidelines.
Platform Expertise: RBI FIRMS Portal | AD Bank Coordination
Annual FLA Return
Filing of the annual Foreign Liabilities and Assets return by 15 July for all companies with FDI or overseas investment — mandatory even where no fresh investment was received during the year.
Overseas Direct Investment (ODI)
Form FC filings for equity investment abroad, Annual Performance Report (APR) by 31 December, and disinvestment reporting under the Overseas Investment Rules, 2022.
External Commercial Borrowings
ECB structuring within all-in-cost ceilings and minimum average maturity norms, Loan Registration Number (LRN) application, and monthly ECB-2 returns.
Compounding of Contraventions
Quantification of FEMA contraventions (delayed FC-GPR, FLA non-filing, LO/BO non-compliance), preparation of compounding applications, and representation before the RBI.
NRI & Individual FEMA Advisory
Advisory on NRI acquisition and sale of immovable property, repatriation of funds up to USD 1 million per year from NRO accounts, and Liberalised Remittance Scheme limits for resident individuals.
Key Service Features
FDI Reporting
FC-GPR filing within 30 days of allotment, FC-TRS for share transfers, and downstream investment reporting on the RBI FIRMS portal.
ODI Compliance
Form FC filings, Annual Performance Reports, and compliance under the Overseas Investment Rules, 2022 for Indian companies investing abroad.
ECB Advisory
ECB structuring within RBI norms, Form ECB filing, and monthly ECB-2 return compliance.
Compounding Support
Preparation and representation of compounding applications before the RBI for past FEMA contraventions.
Who We Serve
Our Clients
- Indian companies that have received FDI
- Foreign companies with Indian subsidiaries
- Indian companies investing overseas (ODI)
- Startups with foreign investors or SAFE notes
- NRIs buying or selling property in India
- Companies with ECB or foreign currency loans
- Businesses facing FEMA notices or contraventions
Frequently Asked Questions
What is FEMA and which transactions does it cover?
The Foreign Exchange Management Act, 1999 regulates all foreign exchange transactions in India — foreign direct investment, overseas investment by Indians, external commercial borrowings, import-export payments, NRI bank accounts, property transactions, and outward remittances. Any transaction between a resident and a non-resident, or involving foreign currency, falls within the scope of FEMA and the regulations issued by the RBI.
What is FC-GPR and when must it be filed?
Form FC-GPR reports the allotment of shares to a foreign investor and must be filed on the RBI FIRMS portal within 30 days of allotment. Before filing, the inward remittance must have been reported and shares must be issued within 60 days of receiving funds at a price not below the fair value certified by a Chartered Accountant or merchant banker. Delayed filing attracts late submission fees or compounding.
What is the FLA return and is it mandatory for my company?
The Foreign Liabilities and Assets return is an annual return filed with the RBI by 15 July each year. It is mandatory for every Indian company that has received FDI or made overseas investment in any year — including past years — even if there was no fresh transaction in the current year. Non-filing is a FEMA contravention liable to penalty and compounding.
What happens if my company missed a FEMA filing deadline?
Delayed reporting can be regularised either by paying the Late Submission Fee (LSF) where eligible, or through compounding — a formal application to the RBI admitting the contravention and paying the compounding amount. Compounding is faster and cheaper than adjudication and closes the matter conclusively. We quantify the exposure, prepare the application, and represent you before the RBI.
What are the FEMA rules for an NRI selling property in India?
An NRI can sell residential or commercial property to a resident, NRI, or OCI without RBI permission. Sale proceeds must be credited to an NRO account, and repatriation is permitted up to USD 1 million per financial year after payment of applicable capital gains tax, supported by Form 15CA/15CB. Repatriation of sale proceeds of agricultural land is generally not permitted.
What is the Liberalised Remittance Scheme (LRS) limit?
Under LRS, resident individuals can remit up to USD 250,000 per financial year for permitted purposes — overseas education, travel, medical treatment, gifts, and investment in foreign shares and property. Remittances above Rs.10 lakh under LRS attract Tax Collected at Source (TCS) at rates depending on the purpose. We advise on structuring remittances and claiming TCS credit in your tax return.
What approvals are needed for ODI — Indian investment abroad?
Under the Overseas Investment Rules, 2022, Indian entities can invest abroad under the automatic route up to 400% of net worth, subject to filing Form FC through the AD bank before remittance. An Annual Performance Report must be filed each year for every foreign entity, and disinvestments must be reported within specified timelines. Investments in financial services or from entities under investigation may require prior approval.
Is FDI allowed in my business sector and at what percentage?
Most sectors permit 100% FDI under the automatic route — including manufacturing, software, e-commerce marketplaces, and wholesale trading. Some sectors are capped or need government approval — defence, insurance, multi-brand retail, and print media among them. Investments from countries sharing a land border with India require prior government approval regardless of sector. We confirm the entry route and conditions before funds flow.