Overview
An export-oriented company in India must ensure that export proceeds are realised within the prescribed period (generally 9 months from the date of shipment) and reported through the AD Bank. Where proceeds are not realised — due to buyer default or market conditions — an application to write off the receivable must be supported by board resolutions and adequate documentation. A company that sets up a representative office overseas must comply with FEMA's ODI framework. FDI received from overseas buyers or strategic partners must be reported via FC-GPR. Each of these FEMA obligations sits alongside the standard Companies Act compliance calendar.
Key Compliance Obligations
Export Proceeds Realisation
Export proceeds must be realised and repatriated to India within 9 months (15 months for status holder exporters) from the date of shipment. Where realisation is delayed or the debt becomes irrecoverable, write-off permissions or compounding with the RBI may be required, supported by board resolutions and CA certificate.
ODI — Overseas Office / Investment
Setting up a representative office, liaison office, or branch overseas requires RBI/FEMA compliance under the Overseas Direct Investment framework — ODI-1 filing through the AD Bank. Annual Performance Reports for overseas investments must be filed by 31 December each year.
FC-GPR for Foreign Equity
Export companies attracting foreign equity — from overseas buyers, strategic investors, or funds — must file FC-GPR within 30 days of allotment. FLA return must be filed annually by 15 July.
Board Resolutions for Trade Finance
Letters of credit, bank guarantees, export credit facilities, and packing credit limits require board resolutions authorising the company to avail these facilities. The resolution must specify the facility type, bank, and limit. Charge registration follows if security is provided.
Annual MCA Compliance
MGT-7, AOC-4, board meetings, and director KYC. Export companies with overseas branches or offices may have additional statutory disclosures in the Board's Report regarding overseas activities and foreign currency earnings.
Common Compliance Failures
These are the gaps we most frequently encounter when onboarding export & international trade clients — situations that require remediation before the company can present a clean compliance record to investors, lenders, or acquirers.
- Export proceeds not realised within 9 months — FEMA violation, compounding required
- Write-off of irrecoverable export receivables without RBI permission — FEMA violation
- ODI annual performance report not filed — RBI notice and penalty
- Overseas representative office setup without RBI approval — unauthorised ODI
- FC-GPR for foreign strategic investor not filed on time — FEMA compounding
Key Risk
Unrealised export proceeds beyond 9 months constitute a FEMA violation. Write-off without RBI permission — where the company simply books a bad debt without formal FEMA write-off approval — exposes the company to a penalty of up to 3× the amount involved.
How We Help
We provide end-to-end governance and compliance support for export & international trade companies — from maintaining the annual compliance calendar to managing FEMA filings, structuring equity events, and preparing for investor due diligence. Every engagement is handled by a qualified governance and advisory professional with direct client access.