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Foreign Exchange Management Act Compliances

The Foreign Exchange Management Act (FEMA) is an Act to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India.

When a business enterprise imports goods from other countries, exports its products to them or makes investments abroad, it deals in foreign exchange.

Foreign exchange means ‘foreign currency’ and includes:- (i) deposits, credits and balances payable in any foreign currency; (ii) drafts, travellers’ cheques, letters of credit or bills of exchange, expressed or drawn in Indian currency but payable in any foreign currency; and (iii) drafts, travellers’ cheques, letters of credit or bills of exchange drawn by banks, institutions or persons outside India, but payable in Indian currency.

The violation or non-compliance of FEMA, either deliberate or due to ignorance, can entail heavy punishment or penalties of different forms.

 

Areas, in which we can assist:

  • Foreign Investment in India (FDI) Advisory, Set-Up & compliances;
  • Direct Investment outside India- Advisory;
  • Approval from Foreign Investment Promotion Board;
  • Approval from Reserve Bank of India;
  • Legal opinions;
  • Transfer pricing;
  • Advisory- Double Tax Avoidance Agreement (DTAA);
  • Retainer-ship services;
  • NRI related services;
  • NBFC Registration/Deregistration;

Obtaining permission under various provisions of FEMA, Filing of Intimations, Statutory Forms & Returns & other statutory compliances under FEMA.

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