Companies that receive foreign investment, or that are involved in cross-border share transfers or overseas investments, are required to comply with the Foreign Exchange Management Act (FEMA) and file reports with the Reserve Bank of India (RBI) within prescribed timelines. These requirements apply alongside — and independently of — the company’s obligations under the Companies Act.
FEMA filings are time-sensitive. The timeline for filing begins from the date of receipt of funds or the date of transfer, and delays attract compounding penalties from the RBI.
We assist companies in meeting their FEMA and RBI compliance obligations in relation to foreign investment and cross-border transactions.
This service is relevant for: Companies that have received or are in the process of receiving foreign investment, companies with NRI or foreign shareholders, companies involved in cross-border share transfers, and businesses making overseas investments.
Scope of Services
FC-GPR Filing (Foreign Currency — Gross Provisional Return) When an Indian company receives foreign investment and allots shares to a foreign investor, it is required to file Form FC-GPR with the RBI through the FIRMS portal within 30 days of allotment. We handle the preparation and filing of FC-GPR, including the required valuation certificate and KYC documentation.
FC-TRS Filing (Foreign Currency — Transfer of Shares) When shares of an Indian company are transferred between a resident and a non-resident — such as a secondary sale by an Indian promoter to a foreign investor, or vice versa — Form FC-TRS is required. We assist with this filing and ensure compliance with the applicable pricing guidelines under FEMA.
Overseas Direct Investment (ODI) Compliance Indian companies making investments in foreign entities — whether by way of equity, loans, or guarantees — are required to comply with the ODI framework under FEMA. We advise on the requirements and assist with the applicable filings.
Downstream Investment Reporting Companies that have received foreign investment and are in turn investing in other Indian companies are required to comply with the downstream investment provisions under FEMA. We advise on the applicable rules and assist with the required reporting.
FEMA Advisory Before entering into a cross-border transaction, it is important to understand the regulatory route (automatic route or government approval route), applicable sectoral caps, pricing requirements, and filing obligations. We provide advisory on these aspects so that the transaction is structured in compliance with FEMA from the outset.
Why Timely Filing Matters
FEMA filings have strict timelines — the 30-day period for FC-GPR, for example, begins from the date of share allotment, not from the date of receipt of funds. Delays attract Late Submission Fees (LSF) and, in some cases, compounding proceedings with the RBI. Unresolved FEMA violations also appear during due diligence, which can affect future fundraising and corporate transactions.
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We are happy to discuss your FEMA compliance requirements. Get in touch with us →
