RBI FEMA Compliance

RBI FEMA Compliance

Any business dealing with foreign investments, cross-border payments, loans, or shares automatically enters FEMA territory. RBI expects timely, accurate reporting — and ignoring it can invite penalties, bank scrutiny, or delays in future transactions. Good compliance keeps your business investment-ready and audit-proof.

What FEMA compliance covers

• Foreign direct investment (FDI) reporting

• ODI/foreign subsidiary reporting

• External Commercial Borrowings (ECB)

• Downstream investment compliance

• Transfer of shares between residents and non-residents

• Pricing, valuation, and sectoral cap checks

• Annual return on foreign liabilities and assets (FLA)

• Compounding of FEMA violations

• Capital account transaction approvals

• Non-resident share allotment, buyback, rights and bonus issues

Why it matters

• Mandatory under RBI regulations

• Helps avoid compounding penalties

• Required for funding rounds, due diligence, banking, and audits

• Ensures foreign investment remains legally valid

• Builds credibility with investors and lenders

How we assist

• Review transactions for FEMA eligibility

• Prepare documents, certificates, and valuations

• File EMF, SMF, FC-GPR, FC-TRS, FLA, ODI, ECB and other forms

• Coordinate with banks and Authorised Dealer branches

• Track deadlines and regulatory updates

• Handle clarifications, resubmissions, and rectifications

• End-to-end advisory on structuring foreign investments

Documents usually required

• Incorporation documents and shareholding records

• Investor KYC and constitutional documents

• FIRC, bank advice, KYC, SWIFT copies

• Board resolutions and agreements

• CA/merchant banker valuation reports

• Previous FEMA filings and acknowledgments

Our workflow

1. Understand the transaction or investment flow

2. Check FEMA rules, pricing, and documentation

3. Prepare filings and supporting reports

4. Submit forms and liaise with bank/RBI

5. Share acknowledgment and compliance tracker