What are the Foreign Exchange Management Act (FEMA) services in India
In India, Foreign Exchange Management Act (FEMA), 1999 regulates transactions relating to foreign exchange and cross-border transactions between residents and non-residents.
FEMA envisages that the Reserve Bank of India (RBI) has a controlling role in the management of India’s foreign exchange reserves, external trade and its related payments and policies.
FEMA applies to all parts of India as well as all branches, offices and other entities established or set up outside India which are owned or controlled by a person resident in India.
Further, it also regulates branches, offices and other entities established or set up in India which are controlled by persons resident outside India.
What are InCorp’s FEMA services in India?
InCorp’s team of corporate service experts, with sound knowledge of Indian regulatory environment including that of FEMA, can assist an Indian company as well as a foreign company with the following services in India:
- Set-up a Branch, Representative and Project Office
- Foreign Direct Investment
- Overseas Direct Investments (ODI) by an Indian Company
- Raising of External Commercial Borrowings (ECB) by an Indian Company
- Annual return on Foreign Liabilities and Assets (FLA Return filing in India)
- Liberalized Remittance Scheme (LRS) for Non Resident Indians (NRIs)
- Inward remittances to India under FEMA
- Cross border mergers
- Acquisition and transfer of immovable properties
- Export and import of goods and services
- Compounding of offence under FEMA
Consulting InCorp Group on FEMA Advisory in India
Driven by the main objective of facilitating external trade and payments in India, the FEMA act ensures the proper development in its foreign exchange market. With numerous enforcements, penalties and appeals to navigate, InCorp Group’s team of professionals are well experienced in advising you accordingly. For more information on the FEMA act in India or to engage our services, please get in touch with our team today!
FAQs
What is the purpose of FEMA regulations in India?
- With a rise in inbound and outbound flow of funds, the level of check on compliances in context of foreign exchange have increased. A need may arise for entities to keep a regular eye on foreign exchange transactions and ensure its timely compliances to circumvent penalties.
- LO is in the nature of a representative office set up primarily to explore and understand the business and investment climate in India. It generally acts as a communication channel between the parent company overseas and its present or prospective customers in India.
- Body Corporates incorporated outside India are allowed to set up BO engaged in the same activity as that of the foreign parent.
- PO means a place of business in India to represent the interests of the foreign company executing a project in India.
Yes. In order to set up the above entities in India, prior permission from RBI is required.
It ensures-
- Inbound investment in India or an outbound investment from India is FEMA compliant.
- Timely reporting to the regulators wherever required.
