Foreign Exchange Management Act & Compliances
Shared business with foreign nationals, results in overseas transactions. For receiving or remitting funds from & to abroad, entities in India are abided to follow guidelines and compliances provided by RBI and FEMA authorities. Entities with no prior knowledge of FEMA are required to appoint legal professionals for FEMA obligations.
At CS-India, we as a team of trusted FEMA Consultants in Haryana and Delhi take care of your investment compliances and keep you away from hassles of all corporate compliances.
Foreign Exchange Management Act (FEMA)
Foreign Exchange and Management Act (FEMA) is legislation on foreign remittances. Corporate entities in India requiring foreign direct investments (FDIs) or making payments abroad are controlled and regulated under this act. The Act provides for compliances to be followed by Indian entities while investing aboard or receiving investment in the home country.
The provisions of FEMA apply to all companies receiving FDI in India, making an investment in joint ventures or subsidiaries abroad, exporting and importing, transferring immovable property to any person residing outside, commercial borrowing and lending with external entities, etc. FEMA requires Indian entities to adhere to stipulated guidelines of RBI and Government for FEMA and file all necessary returns to avoid consequences and penalties
At CS-India, we as leading FEMA Consultants in Haryana and Delhi occupy all areas of corporate compliances and reporting to be made to FEMA / RBI authorities.
FEMA Transactions
FEMA put all forex transactions of business entities in India in two separate heads:
1) Capital Account Transaction
2) Current Account Transaction
Capital Account Transactions records transactions where assets or liabilities of a foreign national alter in India or where asset or liability of an Indian entity alters outside. For instance, the investment made in a Company in the USA by an LLP formed in India. For Capital transactions, entities have to go through the approval route of FDI taking approval of Reserve Bank of India / Foreign Investment Promotion Board (FIPB) / Ministry of Finance.
Current Account Transactions record transactions related to payments made in course of business, payments for interest on loans, incomes from investments abroad, etc which require the approval of government and RBI.
CS-India homes a team of FEMA Consultants in Haryana and Delhi, experienced in all FEMA regulations and compliances. We serve for the entire gamut of FEMA Compliances all over India.
FEMA Compliances
Putting foreign investment in a business or for keeping up with other transactions under FEMA, a corporate entity has to manage compliance filling and keep up with the time-line of FEMA Compliances.
FEMA facilitates trade and promotion of foreign exchange transactions in the country within a complied framework. The act provides for compliance of the following returns from foreign investors and FDI recipients:
- FLA (Foreign Liabilities and Asset) Return: FLA return is to be filed by all companies in India, receiving FDI or making outward direct investment (ODI). The FLA return is filed by 15th July of the succeeding year for remittances or FDIs received or ODIs made in the previous year.
- Annual Performance Report (APR): For outward direct investment abroad, Indian resident companies, also have to file an Annual Performance Report (APR) in Form ODI Part II through the authorized dealer banks before 31st December.
- External Commercial Borrowings: Companies and entities entailing ECB transactions, have to report all ECB transactions on a monthly basis to RBI using Form ECB 2
- Advance Reporting Form: For the issue of shares or securities to foreign nationals for FDI receipts, companies have to report details of the category and value of securities issued to RBI through Advance Reporting Form (ARF) within 30 days of issue of securities.
- Single Master Form: Simplifying submission of multiple returns under FEMA, RBI issued guidelines for filling Single Master Form with all FEMA returns – Form FC GPR, FC – TRS, LLP-I, LLP-II, ESOP, DI, InVi, DRR.
- Form FC-GPR: A return form to be filed by all companies for reporting share allotments to foreign nationals to RBI within 30 days of allotment.
- Form FC-TRS: A return form to be submitted to RBI for transfer of shares allotted under the FDI scheme.
- Form ODI: Form submitted to RBI for disclosure of shares/securities allotted by foreign entities against the investment made abroad
Holding a vast base of clients, CS-India with its team of FEMA Consultants in Haryana assists in the completion of all FEMA Compliances:
- Filling FLA (Foreign Liability and Asset) Return
- Preparation of Annual Performance Reports
- Disclosure marking for External Commercial Borrowings
- Compliance with Master guidelines of RBI.
- Returns / Report filling with RBI/FEMA/FDI Authorities
- Assistance in New Branch office / Liasoning office / Joint Venture opening in India and abroad.
- Advisory on FEMA/RBI matters.
- Legal Opinion
- Compliance filling with FIPB
- Compliance of Trade Credit / Transfer / Conversion of Shares.
- Corporate Structure Designing
- Planning Financial Structure and much more
We believe in making the most desired use of our expertise to provide practical exposure with satisfaction to our clients.
Why percept CS-India for FEMA Consultants in Haryana and Delhi?
With CS-India, entities can better comply with FEMA, putting our dedicated FEMA Consultants to work.
We have completed several assignments of FEMA with our associated clients and occupied the required expertise to facilitate our business doors to our upcoming clients.
Providing cutting edge solutions, we are also approached for:
- Company Incorporation and legal advisory
- FEMA/RBI/FDI Compliances
- Startup Structure and Finance
- Corporate Taxation and Compliances
- Intellectual Rights
- Compliance over employment laws.
- Research and legal opinion.
Put up your queries on FEMA to our business expert at absolutely zero cost.
Email us at info@cs-india.com
Also Read: Foreign Direct Investment (FDI) & Compliances