FEMA Compliance Services in India

The primary legislative framework is the Foreign Exchange Management Act (FEMA), which controls funds transferred from foreign countries to India and vice versa. The act, which was adopted in 1999, also outlines the FEMA standards that a corporate entity must follow in addition to regulating finances.

This law expanded financial openness, stimulated foreign investment, enhanced global trade efficiency, and balanced trade payments.

Globalization and the quick increase of international investment have increased the need for a FEMA file. To avoid FEMA penalties and keep an eye on sectoral and investment caps are other goals.

Benefits of FEMA

  • Indian citizens residing abroad are not protected by FEMA. The home of an Indian citizen can be found using a certain way.
  • Offices, branches, and agencies can all be included as people when determining where in India a person resides.
  • Gives the federal government the power to regulate three things, as well as the ability to control them. These include currency exchanges, payments to or from India, remittances to or from India, and international security arrangements.
  • It identifies the regions where the Reserve Bank of India (RBI) or the government is required for the purchase or storage of foreign currency.
Here are some examples of online FEMA compliance services:

Advice on ECB Compliance

External commercial borrowings are those commercial loans taken out by companies and government agencies. International companies and institutional investors provide these loans. The rate of interest charged by the ECB is higher than loans obtained in India.

The acquisition of mobile homes

Anyone residing outside of India is eligible to buy property there. The Real Estate Acquisition Act of 1999 (FEMA) enables the purchase of the property. The FEMA and RBI also have regulations governing the purchase of real estate outside of India

Exit strategies used by foreign investors

Foreign investors opt for the exit strategy when the rate of return on their investment is insufficient. Stores need to finish a required minimum lock-in period to employ these options.


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