FEMA compliance is triggered not by routine business operations but by specific cross-border events — a foreign investor subscribing to shares, an Indian company acquiring a foreign subsidiary, a loan from an overseas group company, or a payment for services from an international client. Each event creates a filing obligation with the Reserve Bank of India, typically within a short prescribed window.
We provide advisory and compliance management across the full spectrum of FEMA obligations — ensuring that every cross-border transaction is reported correctly, on time, and with the supporting documentation that the RBI requires.
FEMA Compliance Obligations We Handle
FC-GPR — Inbound FDI
Filed on the FIRMS portal within 30 days of share allotment to a foreign investor. Requires KYC of the foreign investor, share valuation certificate from a CA or SEBI-registered merchant banker, and board resolution. Applies under both Automatic and Government Routes.
FC-TRS — Share Transfers
Filed within 60 days of secondary transfer of shares between a resident and a non-resident. Covers both acquisition and divestment, including partial sales and secondary transactions in fundraising rounds.
FLA Return — Annual FDI Position
Annual return filed with RBI by 15 July each year reporting all outstanding foreign liabilities and assets as of 31 March. Applies to all companies that have received FDI at any point in their history.
ODI Filings — Outbound Investment
Indian companies investing in or lending to a foreign subsidiary or JV require ODI-1 form filing with RBI through an Authorised Dealer bank. Annual APR (Annual Performance Report) required for existing ODI positions.
ECB — External Commercial Borrowings
Cross-border loans from a foreign parent, group company, or recognised lender require LRN (Loan Registration Number) from RBI before drawdown, followed by monthly ECB-2 reporting.
Compounding Applications
Where FEMA contraventions have occurred — late FC-GPR, unreported transfers, undisclosed FDI — we prepare and file compounding applications with RBI's CEFA, managing the process through to the compounding order.
Sector Cap & Route Advisory
Not all sectors are open to FDI under the Automatic Route. We advise on the applicable FDI Policy, sector caps, and whether Government Route approval is required before a foreign investor subscribes.
The Penalty Exposure
Under Section 13 of FEMA, 1999, a contravention — including a late filing — makes the person liable to a penalty up to three times the sum involved in the contravention, or ₹2 lakh where the sum is not quantifiable, plus a continuing penalty of ₹5,000 per day for ongoing contravention.
FEMA contraventions are treated as civil wrongs, not criminal offences — but the quantum of penalties, and the requirement to obtain compounding orders before the RBI clears the transaction, means that even a technical late filing can become a material issue during a subsequent fundraise or acquisition.
Our Approach
Transaction Assessment
Before any cross-border transaction is executed, we assess its FEMA implications — applicable route, required approvals, pricing guidelines, and reporting window.
Filing and Documentation
FC-GPR, FC-TRS, and other RBI submissions are prepared with complete supporting documentation — KYC, valuation certificates, and board resolutions — and filed within the prescribed timeline.
Annual FLA Return
The FLA return is prepared from the company's books as part of our annual compliance calendar, filed with RBI by 15 July without requiring the company to navigate the FIRMS portal.
Compounding Assistance
Where past contraventions need to be regularised, we prepare the compounding application, calculate the applicable fee, and manage correspondence with RBI's CEFA through to the compounding order.
What You Get
- All FEMA filings submitted within prescribed windows — no contraventions
- Cross-border transactions assessed for compliance before execution
- FLA return filed annually by 15 July without exception
- Historical contraventions regularised through RBI compounding where applicable
- Clean FEMA compliance record for due diligence in fundraising or M&A