FEMA and RBI Compliances :-

Due to globalisation, the importance of FEMA/RBI compliance has increased manifold. It includes Chartered Accountant’s certification for transactions prescribed in the FEMA/RBI regulations, making prescribed application to RBI for various FEMA and RBI regulated transactions, and advisory services related to FEMA/RBI matters.

One can set up a company and operate out of India and in India but, performing cross border transactions can be a hassling task as it requires compliance with various Laws and legislatures. Two of the most important compliances are compliance with Reserve Bank of India (RBI) and compliance with Foreign Exchange Management Act (FEMA). Non compliances of any of the provisions of these acts may cause serious consequences for the entity. This is where our RBI & FEMA compliance services come to your assistance.

The hands-on experience of Sheladiya & Jyani with strategy formation and foreign compliances services, can structure your business in the most ideal way. With our compliance and advisory expertise, we have been successfully structuring the businesses of our clientele.

We provide the following services in this area:-

• Compliance with FDI regulations and getting regulatory approvals.
• Filing of form ODI duly supported by documents like the certified copy of the board resolution, statutory auditors’ certificate and valuation report, etc.
• Setting up Joint Venture (JV)/ Partnership by NRI or persons of Indian origin.
• Issue of Statutory Certificates under FEMA & RBI regulation.
• Advice regarding Double Taxation and withholding Tax.
• early submission of APR (Annual Performance Report).
• Yearly submission of FLA (Foreign Assets and Liabilities) return.
• Compliance of the procedure including chartered accountant’s certification for repatriation of income/assets from India.
• Transfer of shares from Indian resident to non-resident. etc.
• External Commercial Borrowings(ECB) loan requests and its procedure.
• FCRA Filings.
• IEC applications.
• Filing of application for repatriation of Funds with respective authorities/AD.
• Advisory Services on FEMA / RBI.
• Various other Compliances under FEMA/RBI.

Frequently Asked Question Based On FEMA

What is foreign exchange management act?

The Foreign Exchange Management Act,1999 commonly known as FEMA is an act regulated by the Indian government to amend & govern the laws related with the foreign exchange matters to facilitate the external payments & trades for the development of the business structure in the international market.

Why is FEMA required in India?

• Foreign security purposes,
• Any individual residing in India or outside the country (NRI)
• Security that is regulated in public debt 1994
• Any financial, banking and insurance services
• Purchase & sale of any immovable property
• Export and import of any goods and services from a foreign country
• Any overseas transactions by a company with 60% ownership by an NRI

What is FEMA consultancy?

To operate a business in foreign country or to carry out any transaction in foreign currency, an individual needs to maintain the record of every cross-border transaction.  Thus, we offer a strong foreign exchange management act consultancy services to the clients to set up the establishments in India by companies outside India under the regulations of RBI & FEMA compliances for outbound and inbound transactions and investments.  We have a team of experienced professionals who provide effectual solutions concerning the industry legal norms and regulation for avoiding any risks related to the foreign exchange affairs. 

How does RBI manage and control foreign exchange?

Exchange control in India came into existence in the year of 1939 imposed on both the payment & receipts of foreign transactions. The RBI plays an important role in foreign exchange affairs as RBI issues the Indian currency and our monetary policies. 

As RBI provides every information about the Indian currency in order to put up the value of other foreign currency or dollars corresponding to the Indian rupee. Any recipient associated with foreign exchange based on account of investment earnings, capital receipt and export earnings subject to a private account or any government body, RBI has the direct controls over it under exchange laws. 

RBI governs all external payments and trade related to foreign exchange. Here, RBI acts as a guardian in regulating the foreign exchange values and placing the limits to maintain the flow of the entire demand of international transactions and foreign exchanges.

What are the functions of RBI under FEMA?

FEMA – The Foreign Exchange Management Act 1999 was issued by the government by replacing the previous Foreign Exchange Regulation Act. RBI has the full authority over capital account transactions. The key functions of RBI in some instances of current account transaction under the FEMA laws:

• Facilities to lending & borrowing in foreign exchange
• Import and Export facilities of currency notes
• Immovable property acquisition & transfer outside India
• External Commercial borrowings
• RBI approves only the matters related to FEMA
• Foreign Direct Investments
• Under the regulations of FEMA compounding of offence
• Branch, Liaison, and Project offices establishment of foreign organisations in India

Owing to vast experience of our team, we have been offering end-to-end FEMA Consultancy services that are sure to exceed the expectations of the clients