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FEMA Advisory & Compliance
Stay compliant with India’s regulatory framework.
Analyzing transactions about Foreign Exchange Law in India, i.e, Export, Import, Foreign Direct Investment, Overseas Direct Investment, External Commercial Borrowings, Import of Goods / Services, Export of Goods / Services, Liberalised Remittance Scheme. Including Identifying Contraventions / non-compliances under FEMA
FEMA Compliance – An Overview
The Foreign Exchange Management Act (FEMA), enacted in 1999, regulates the flow of funds between India and foreign countries to ensure orderly and transparent cross-border financial transactions. FEMA not only governs the movement of foreign exchange but also sets forth clear compliance requirements that businesses engaged in international trade and investment must follow.
FEMA compliance plays a crucial role in facilitating smoother cross-border trade, encouraging foreign investment, and maintaining a stable balance of payments. As globalization accelerates and international trade expands, adherence to FEMA filing obligations has become increasingly critical. Compliance ensures businesses operate within prescribed sectoral and investment limits, avoid costly penalties, and maintain good standing with regulatory authorities.
For companies involved in import-export activities, foreign direct investment (FDI), or overseas business expansion, staying aligned with FEMA regulations is a key component of effective risk management and operational efficiency. Ensuring timely and accurate FEMA filings provides greater transparency, safeguards financial interests, and fosters confidence among partners and stakeholders.
If navigating the complexities of FEMA compliance seems challenging, Sriya Enterprise offers expert advisory services designed to simplify regulatory adherence. Our experienced consultants guide businesses through regulatory frameworks, documentation, and filing processes to ensure full compliance—and peace of mind.
Why Do You Need Compliance Under FEMA?
Compliance with FEMA (Foreign Exchange Management Act) is essential for any business engaged in external trade and international financial transactions involving India. As a key component of India’s foreign exchange regulatory framework, FEMA is enforced by the Reserve Bank of India to promote a liberalized and transparent economic environment.
Adhering to FEMA compliance requirements helps streamline cross-border trade and payments, ensuring that all foreign exchange dealings align with legal standards. This not only facilitates smooth and efficient international transactions but also fosters transparency and accountability in financial operations.
Moreover, maintaining compliance with FEMA protects your business from potential legal penalties and regulatory risks that can arise from non-compliance. It also plays a vital role in enhancing your company’s reputation on the global stage by showcasing your commitment to upholding regulatory norms and ethical business practices.
In today’s interconnected marketplace, FEMA compliance contributes significantly to strong corporate governance and builds trust with international partners, investors, and stakeholders, positioning your business for sustainable growth in global trade and investment.
Compounding Under FEMA
We offer expert representation before the Reserve Bank of India (RBI) for the compounding of FEMA contraventions. Representation before the Reserve Bank of India (RBI) for compounding of contraventions under FEMA
Regulatory Filings & Compliance
Facilitate accurate filing and documentation of the Foreign Currency-Gross Provisional Return (FCGPR) to report foreign investment inflows in compliance with RBI timelines and formats.
Manage Foreign Currency-Transfer of Shares (FCTRS) compliance including precise documentation and regulatory filings for transfer of shares between residents and non-residents.
End-to-end advisory on structuring overseas direct investments, including transaction approvals, documentation, and maintaining compliance with FEMA guidelines for outbound investments.
Assist in obtaining Unique Identification Numbers (UIN) required for overseas investments made by Indian companies and Limited Liability Partnerships (LLPs) to meet RBI regulatory mandates.
Streamline the process for resident individuals to acquire UINs necessary for compliant overseas investments, ensuring adherence to FEMA provisions and RBI regulations.
Facilitate timely and accurate filing of Foreign Liabilities and Assets returns as mandated by RBI, helping organizations track and report foreign investments and liabilities under FEMA regulations.
Support filings related to the disinvestment or divestment of overseas investments with the RBI, ensuring accurate reporting and compliance with repatriation and regulatory requirements.
Comprehensive support for Employee Stock Ownership Plan (ESOP) reporting requirements with RBI, covering issuance, transfer, and regulatory filings related to ESOPs involving non-resident employees.
Assist companies in obtaining Loan Registration Numbers (LRN) for External Commercial Borrowings (ECB), alongside preparation and submission of all required documentation and compliance reports to RBI.
Our comprehensive FEMA advisory includes end-to-end support for all regulatory filings and reporting obligations mandated by the Reserve Bank of India (RBI). This ensures your transactions stay compliant with evolving laws, minimizing risks of penalties and delays.
Efficient reporting for downstream investments under RBI’s Foreign Investment Facilitation Portal (FIFP), ensuring transparency and compliance with limits set on foreign investments.
Transaction Structuring & Advisory
Optimize your cross-border deals with expert FEMA-compliant structuring for imports, exports, investments, and remittances. Professional advisory minimizes risks, ensures RBI approvals, and maximizes efficiency in complex international transactions
Streamline imports, exports, royalties, and remittances under FEMA guidelines to avoid delays and penalties.
Structure trade transactions with correct, adherence to RBI norms for exports and imports, Incoterms, HSN codes, and documentation for seamless customs and bank processing.
Plan permissible current account transactions via Liberalized Remittance Scheme (LRS), ensuring compliance with RBI limits up to $250,000 annually for eligible purposes.
Address documentation, reporting, and end-use restrictions to prevent scrutiny on capital account flows.
FDI/ODI and ECB Structuring
Secure approvals and structure Foreign Direct Investment (FDI), Overseas Direct Investment (ODI), and External Commercial Borrowings (ECB) for compliant global expansion.
Guide equity investments, share swaps, and asset acquisitions with RBI/FIFP approvals, adhering to sectoral caps and valuation norms.
Facilitate overseas investments by companies, LLPs, or individuals, including UIN acquisition and disinvestment filings.
Obtain Loan Registration Numbers (LRN), manage end-use restrictions, and handle reporting to align with FEMA borrowing guidelines.
