FEMA

The Foreign Exchange Management Act (FEMA) is an Indian law that regulates foreign exchange transactions, currency dealings, and related activities. Under FEMA, we provide several services and functions to govern and manage foreign exchange in India.

  • Timely RBI compliance
  • RBI liasion
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Foreign Direct Investments

Our expert services guide businesses on Foreign Direct Investment (FDI) regulations under FEMA, assisting in compliance and optimizing FDI strategies for growth and expansion in India. Also, issues relating to the transfer or issue of capital instruments in India under the automatic route as well as the approval route need to be addressed.

Current Account Transactions

FEMA governs current account transactions, which cover regular business activities such as trade in goods and services. These transactions are generally liberalized, and individuals and businesses can engage in them with ease.

Capital Account Transactions

FEMA regulates capital account transactions, including the acquisition and transfer of capital assets such as shares, property, and investments. Specific rules and limits apply to these transactions.

External Commercial Borrowings (ECB)

FEMA regulates the borrowing of funds from foreign sources by Indian entities. It sets guidelines for eligible borrowers, permissible end-uses, and reporting requirements. We provide assistance for drafting loan agreement, obtaining Loan Registration Number (LRN) and complying with monthly ECB reporting.

Penalty and Compounding of offences

Contraventions/non-compliances under FEMA can invite penalties. These contraventions/non-compliances can be made good by applying for compounding of offense with the concerned regional office of RBI and payment of compounding fees on case to case basis.

Overseas Direct Investment (ODI)

ODI refers to the investment made by Indian entities in foreign businesses and assets like Incorporation of a Wholly Owned Subsidiary (WOS) or setting up a Joint Venture (JV) outside India, subject to regulatory compliance and reporting under FEMA guidelines.

Liberalized Remittance Scheme

Under FEMA, Resident Individuals are allowed to make remittances outside India for certain permissible capital account transactions in aggregate up to USD 2,50,000/- per year, subject to fulfillment of few basic conditions. The benefit of LRS is only available to Resident Individuals and not to Non-Resident Individuals.

NRO and NRE Accounts

NRO accounts are used for managing income earned in India and are subject to FEMA regulations. NRE accounts are used to hold and manage foreign income that has been remitted from abroad into India, and they are freely repatriable, meaning both the principal and interest can be transferred abroad without restrictions.
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Process of FEMA Advisory at Accorp Partners

Initial Advisory

We begin to understand your specific business needs and objectives related to foreign exchange transactions and FEMA compliance

Compliance Assessment

Our experts conduct a comprehensive assessment of your current FEMA compliance status and identify areas that require attention.

Strategy Development

Based on our assessment, we develop a tailored strategy that aligns with your business goals while ensuring adherence to FEMA regulations.

Implementation

We assist you in implementing the recommended strategies, including obtaining approvals, structuring transactions, and preparing documentation.

Ongoing Monitoring

Our team continuously monitors your FEMA-related transactions and regulatory changes to ensure ongoing compliance.

Reporting and Documentation

We help you prepare accurate reports and maintain proper documentation to meet FEMA reporting requirements.

Advisory and Support

Throughout the process, we provide proactive advisory and support to address any issues or changes in FEMA regulations that may affect your business.

Our Clients

OUR TESTIMONIALS

Accorp Partners has been instrumental in navigating the complexities of FEMA compliance for our company. Their expert guidance, attention to detail, and commitment to staying updated with regulatory changes have made our foreign exchange transactions seamless and hassle-free. We highly recommend their services."

- Jennifer Lee, CFO, Export Company

Accorp Partners' FEMA advisory services have been invaluable to our business. They not only helped us obtain necessary approvals but also optimized our foreign investments, ensuring compliance every step of the way. Their expertise is unmatched.

- Emily Davis, Finance Director, Venture Capitalist Company.

Our Team

Tripti Goel

CA, B Com (Hons),
M Com

Vikas Bansal

CA,B.com

FREQUENTLY ASKED QUESTIONS

What is the objective of FEMA?
The primary objective of FEMA is to facilitate external trade and payments and promote orderly development and maintenance of foreign exchange market in India.
What are the key regulations under FEMA?
FEMA includes regulations related to foreign exchange transactions, current and capital account transactions, foreign investments, external commercial borrowings (ECB), and more. It also covers rules for residents and non-residents regarding their financial activities.
Who is responsible for implementing FEMA in India?
The Reserve Bank of India (RBI) is the main regulatory authority responsible for implementing FEMA in India. It issues guidelines, approvals, and regulates foreign exchange transactions.
What is the difference between the current account and capital account under FEMA?
The current account deals with regular business transactions such as trade in goods and services. The capital account deals with capital transactions like investments, loans, and transfers of assets.
Can Indian residents hold foreign currency accounts under FEMA?
- Yes, Indian residents can hold foreign currency accounts under FEMA, subject to certain conditions and restrictions.
Are there any restrictions on foreign investments in India under FEMA?
FEMA outlines the rules and limits for foreign direct investment (FDI) and foreign portfolio investment (FPI) in India, including sector-specific guidelines.
What is the penalty for non-compliance with FEMA regulations?
Non-compliance with FEMA regulations can result in penalties, fines, and even confiscation of assets. The severity of penalties may vary depending on the nature and extent of the violation.
How often are FEMA regulations updated?
FEMA regulations are periodically updated to reflect changes in economic conditions and government policies. It's important for individuals and businesses to stay updated on the latest regulations.
Can individuals and businesses appeal decisions made under FEMA?
Yes, FEMA provides mechanisms for individuals and businesses to appeal decisions made by authorities under the Act.
What are the FEMA compliance reporting requirements for businesses?
Businesses engaged in foreign exchange transactions are required to submit various reports and declarations to RBI or authorized banks, as specified under FEMA
Does FEMA apply to non-resident Indians (NRIs)?
Yes, FEMA applies to NRIs and regulates their foreign exchange transactions and investments in India.

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