FOREIGN EXCHANGE MANAGEMENT ACT- FEMA
The Firm has Senior Professionals with FEMA experience and provides Advisory services to Individuals and Companies, including Structuring, investment proposals, and services for regulatory compliance.
Services under FEMA
- Inbound and Outbound Investments
Advising on inbound investments in India on repatriable or non-repatriable basis, leading to Investment Entry strategy;
Setting up of entry structure like subsidiary company or a branch or a liaison office or a project/site office;
The Firm advises on External Commercial Borrowing (ECB), Trade Credit, Transfer of shares from residents to non-residents, on transfer of immovable property and regulatory compliance thereon
Advising outbound investments by Indian entrepreneurs for International investments, including entity structure and permissible activities
- Services provided in Regulatory Compliance
Business/Share Valuation Certificate
- FEMA/RBI COMPLIANCES
Advance Reporting Form
The company has to provide details in an “Advance Reporting Form” to the RBI within 30 days of receiving funds from investor(s). Also, the company has to issue shares within 180 days from receiving funds otherwise it would lead to violation of the FEMA regulations.
Filing of FC-GPR
On issue of shares to foreign investors, the company has to report in specified form (FC-GPR) to the RBI, within 30 days from the date of issue of shares along with a Certificate from the Company Secretary and a certificate from a Chartered Accountant.
Compliances for External Commercial Borrowings
While availing ECB’s, it is primary to check whether the Company is eligible to obtain ECB’s as per the RBI guidelines. There are conditions on the amount to be remitted every year, restrictions on the end use of the money, average maturity period, so on and so forth.
Returns for reporting under ECB’s
Under FEMA, Form 83 has to file for obtaining a loan Registration Number and such filings and reporting are to be carried out every month in Form ECB2.