The Foreign Exchange Management Act, 1999, governs cross-border capital flows — foreign direct investment into India, overseas direct investment by residents, external commercial borrowings, and current-account transactions. Most sectors fall under the automatic route, while a few require prior government approval, and every transaction carries reporting discipline.
About This Service
We advise on entry structuring, pricing and sectoral caps, and handle the reporting stack — FC-GPR for allotments to non-residents, FC-TRS for transfers, annual FLA returns, and ODI filings — so foreign investment stays regularised from day one.
What We Cover
- FDI entry strategy: automatic vs approval route
- Sectoral caps and pricing guideline advisory
- FC-GPR reporting for foreign allotments
- FC-TRS reporting for share transfers
- Annual FLA returns to RBI
- Overseas Direct Investment (ODI) filings
- External Commercial Borrowings (ECB) reporting
- Compounding support for FEMA contraventions
How foreign investment compliance works
General overview of bringing FDI into an Indian company and keeping it compliant under FEMA, 1999.
- 1
Confirm route and sectoral caps
Check whether the sector and investment level fall under the automatic route or need government approval, and confirm pricing guidelines for the issue or transfer price.
- 2
Receive funds through banking channels
Bring in remittance through authorised dealer banks with FIRC and KYC documentation, and report the inflow to the RBI through the AD bank within the prescribed time.
- 3
Allot shares and file FC-GPR
Allot shares within the permitted period of inflow and file Form FC-GPR with the RBI through the FIRMS portal, with CS/CA certification as required.
- 4
Maintain annual reporting
File the annual FLA return by the due date each year once foreign liabilities or assets exist, and keep FC-TRS filings current for any secondary transfers.
- 5
Regularise past lapses
Where reporting was missed, quantify the contravention and pursue compounding with the RBI rather than leaving the default open.
Information on this page is for general guidance only and does not constitute professional advice. Provisions, forms, fees, and timelines under the Companies Act and allied laws change from time to time — confirm applicability to your facts before acting.
Working with this practice
- Direct engagement with the professional handling your matter
- Proactive tracking of statutory timelines and filings
- Clear, written advice before you commit to a course of action
- Confidential handling of corporate records throughout the engagement
Certain specialised engagements may be undertaken in association with empanelled professionals where the matter requires.