Dhruv Dua & Co. advises on the Foreign Exchange Management Act, 1999 for money and investments crossing India's border in either direction. The work covers structuring the transaction, pricing, filings with the Reserve Bank of India through the authorised dealer bank, and regularising past delays.
What does FEMA and RBI advisory cover?
- Foreign direct investment. Entry route, sectoral conditions, pricing and the reporting of share issues and transfers in Form FC-GPR and Form FC-TRS.
- Overseas direct investment. Investments by Indian companies and individuals abroad under the Foreign Exchange Management (Overseas Investment) Rules, 2022, Form FC and the Annual Performance Report.
- External commercial borrowings. Eligibility, end use, loan registration and monthly ECB-2 returns.
- Liaison, branch and project offices. Applications in Form FNC, Annual Activity Certificates and closure.
- Annual returns. The Foreign Liabilities and Assets (FLA) return.
- Regularisation. Late submission fee filings and compounding applications for past contraventions.
- Non-resident individuals. Repatriation, property transactions and remittances by non-resident Indians.
How does the work run?
- Map the transaction to the rule that governs it.
- Check pricing and sectoral conditions before money moves.
- Prepare the filing and supporting certificates.
- Coordinate with the authorised dealer bank until the form is approved.
- Record the filing in a tracker with the next due date.
Who is this for?
- Indian companies receiving foreign investment
- Indian groups investing or acquiring abroad
- Foreign companies with offices or projects in India
- Banks and law firms needing a FEMA view on a client matter
Frequently asked questions
When must Form FC-GPR be filed?
Form FC-GPR must be filed within 30 days from the date of allotment of shares to a non-resident investor. It is filed on the RBI's FIRMS portal through the company's authorised dealer bank.
When is the FLA return due?
The Foreign Liabilities and Assets return is due by 15 July every year, for the position as on 31 March. It applies to Indian entities that have received foreign direct investment or made overseas investment.
What happens if a FEMA filing is late?
Most reporting delays can be regularised by paying a late submission fee. Other contraventions are regularised through compounding under s.15 of the Foreign Exchange Management Act, 1999.