FEMA and RBI Compliance

When a company receives investment from abroad, but along with that opportunity comes huge compliance responsibilities. FEMA, RBI regulations, and the Consolidated FDI Policy govern the Foreign Direct Investment in India, and every stage requires precise timing and documentation. Our team takes the responsibility to complete process simple and predictable for your business.

We coordinate thoroughly with founders, investors, and finance teams to make sure that every investment comes in through the proper channel—automatic or approval—and conforms with sectoral caps and pricing guidelines. Before any money enters the business, we assist you in evaluating the structure, ascertain regulatory risks, and establish the right documentation. We manage all obligations related to RBI-reporting, which includes filing the FC-GPR for share allotments, FC-TRS for transfer of shares between resident and non-resident parties, and annual returns related to foreign inflows, once the funds are received.

Many companies struggle with the practical side of FDI compliance: understanding the difference between convertible instruments and equity, knowing how valuation needs to be supported, or determining whether an investment triggers additional approvals. We simplify all of that with clear, actionable guidance.

Our team never lets any timeline get missed, because most of the FEMA filings are time-sensitive and attract penalties for any sort of delays. Whether you’re a startup raising your first foreign round, a growing company welcoming a strategic investor, or an established business restructuring its shareholding, we provide end-to-end support so that your investment is fully compliant, legally sound, and future-proof.

We make you focus on the deal and we take care of ensuring that the deal stays compliant.

While raising funds from foreign lenders greatly strengthens a company's financial position, the rules governing External Commercial Borrowings are detailed, dynamic, and strictly monitored by the RBI. From choosing the right borrowing route to tracking every compliance milestone after the loan is disbursed, we help companies stay fully aligned with the ECB framework.

Our support starts well in advance of signing the loan agreement. We help explain eligibility criteria, permitted lenders, recognized end-uses, and differences between the automatic and approval routes. Choosing the right category of ECB is extremely important because everything from interest caps to repayment terms is affected by it. Once the structure is finalized, we assist in preparing and reviewing all loan documentation so that it fits within RBI's regulatory requirements.

A large number of businesses find post-borrowing compliance a struggle. Monthly ECB-2 returns, annual reporting, verification of interest payments, and monitoring the end-use of funds will all have to be performed with accuracy. We manage the entire cycle from registration of ECB with the RBI, coordination with Authorised Dealer banks, amendments in loan terms, refinancing, and even pre-mature repayment filings.

If a company needs any modification in the repayment schedules, interest rates, or drawdown timings, then we handle the liaison with the RBI to make the approvals smooth and timely. And in case any delay or non-compliance is observed, then guiding the client through the compounding process to settle the matter efficiently is our responsibility.

ECB is a potent financing tool-but only when used compliantly. We make sure your international borrowing bolsters your growth while keeping every regulatory requirement under control.

Cross-border payments form a regular part of business today, be it the payment for imports, receipt of export proceeds, settlement of service fees, dispatch of dividends, or making overseas investments. But each type of remittance has its own set of compliance requirements, purpose codes, and requirements in terms of documentation and conditions of FEMA. Our job is to ensure these transactions move smoothly, lawfully, and without bank and regulatory delays.

We assist businesses in identifying the correct category of remittance and prepare the necessary declarations, forms, agreements, and supporting documents. Whether outward or inward payments, under LRS or through an authorized dealer bank, we ensure everything is aligned with FEMA guidelines. Incorrect coding and incomplete paperwork often lead to banks putting transactions on hold-something we help completely avoid.

For import and export transactions, we guide companies on invoice documentation, timelines for realisation and settlement, and ensuring adherence to RBI circulars. Where services are involved, for example, software, consultancy, marketing, or technical support, we help classify the transaction correctly and maintain FEMA-compliant records for audits or queries.

We also assist in royalty payments, franchise fees, and inter-company cross-border arrangements that attract tighter scrutiny. For Indian entities making investments abroad or receiving returns from foreign subsidiaries, we help navigate ODI compliance and reporting obligations.

Our focus is simple: make international payments seamless, risk-free, and compliant from start to finish. With us managing the regulatory side, your team can focus on running the business-not paperwork, delays, or FEMA worries.

Interaction with the Reserve Bank of India or other regulatory bodies can be quite cumbersome and lengthy at all times. Every clarification, approval, modification, or compliance query calls for a deep understanding of the law and an ability to deal well with authorities. We act as your dedicated liaison, ensuring that your dealings with regulators are smooth, accurate, and professionally handled.

We assist companies in drafting representations, reply to notices, and prepare submissions to clearly state their stand on the regulatory position. Whether it be an issue of foreign investment, overseas borrowing, delay in reporting, or cross-border transaction, we handle everything right from documentation to follow-ups.

Many of these situations demand direct interaction with RBI, be it for approval under the FDI or ECB approval route, altering the terms of borrowing, rectifying past non-compliances, or filing of compounding applications. Our team prepares painstakingly crafted, well-supported filings that enhance the chance of a favorable outcome and minimize the time consumed in back-and-forth correspondence.

We facilitate the resolution of transaction-level issues, correct interpretation of guidelines, and assist in obtaining approvals or no-objection certificates while dealing with AD banks. In complex cases involving multi-party foreign transactions, restructuring, or legacy compliance gaps, we coordinate with all stakeholders for a seamless resolution.

We seek to bridge the gap in compliance expectations of regulators with the practical needs of businesses. Our role is not just to submit documents but to create clarity, compliance, and confidence in every interaction with the authorities.

FEMA touches nearly every cross-border transaction that an enterprise enters into, but most organisations typically identify compliance gaps only when an audit, due diligence, or investor review takes place. Our FEMA advisory service makes sure businesses remain compliant proactively, and not reactively.

We first seek to understand your business model, your current foreign exchange exposure, and the types of cross-border transactions you enter into on a regular basis. With this as a background, we identify potential compliance gaps, risk areas, and process-level issues. Most firms unknowingly violate FEMA due to small errors: delayed filings, incorrect purpose codes, improper share valuations, or undocumented cross-border arrangements. We help identify and fix these before they turn into penalties.

We review contracts with foreign customers or vendors, assess investment structures, check pricing guidelines on behalf of clients, and advise on board-level decisions that may trigger FEMA implications. In the case of growing businesses, we set up weekly or monthly compliance systems that track filings, timelines, and approvals.

We deal in compounding applications, preparation of submissions, and advising the company regarding the regularisation of its position with the RBI in case there is any previous non-compliance. The idea is to minimize regulatory risk by assisting the business in operating with confidence in a global environment.

We provide strong synergies between legal expertise and practical experience to counsel your cross-border activities to strictly adhere to FEMA from day one, minimize exposure, and enable smoother growth.