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Having problem dealing with Foreign Exchange Matters? Reach out to our FEMA Consultant

FEMA stands for Foreign Exchange Management Act. It’s the primary operative act that watches over the matters of foreign exchange. From setting up companies in Foreign countries to watching over foreign currencies, it’s the FEMA guidelines what dictate all. Such matters can get cumbersome, and become more complex with time. Get in touch with our FEMA Consultants

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Fema Consultation Process

Step 1
Come with us with your requirement
Step 2
Set a deadline
Step 3
Get assistance in due time

What is FEMA in India?

 

FEMA's full form Foreign Exchange Management Act or FEMA act came into being in 1999. The goal of the FEMA Act 1999 is to promote external payments and trades across borders.  In its earlier version was the FERA (Foreign Exchange Regulation Act). The primary FEMA objectives are to enforce the Foreign exchange management regulations:

  • Giving power to the central government to impose restrictions on the matters of foreign exchange and foreign payments made to a person Inside the country. For instance, the FEMA act Forex trading watches over the foreign exchange trading to ensure that no fraudulent activity can take place.
  • Imposing restrictions on free transactions.
  • Imposing restrictions on foreign payments from outside the country – allowing it only to be conducted by authorized individuals.
  • Watching over the person authorized with foreign exchange matters ensures no harm to India's economic well-being.
  • Empowering the Reserve Bank of India with the ability to impose restrictions on selling and drawing foreign exchange.
  • Permitting Indian residents to own immovable property or properties in foreign countries, bringing foreign currencies into the country, inheriting any property outside the country, and much more.
  • Establishing FEMA guidelines for import and export is one of the primary concerns of the Foreign Exchange Management Act 1999:
    1. Establishing and enforcing FEMA guidelines related to importing rules
    2. Establishing and enforcing FEMA guidelines for export realization.
    3. Establishing and enforcing FEMA guidelines for outward remittance.
    4. Establishing and enforcing FEMA guidelines for inward remittance.

Services of FEMA

Our FEMA consultants have carved their own unique space in the field of FEMA Consultancy, and as such, we provide our vast and focused outlook in the following FEMA advisory services that we provide:

  • Consultations for transactions related to foreign exchange.
  • Assistance in the routine matters involving interpretation of FEMA rules.
  • Advisory services for inbound investment.
  • Advisory services for outbound investments.
  • Litigation assistance and representation before authorities
  • Assistance with setting up liaison, branch, and project offices in and outside India.
  • Professional business licensing services like CDSCO License, IE Code, etc.
  • Annual return filing services.
  • Business valuation assistance and certification
  • Assistance with filing specific forms like FCGPR, FCTRS, etc.

Regulation and Management Of Foreign Exchanges

While dealing in foreign exchange, the RBI issued some regulations which the concerned person or a firm must adhere to to ensure their businesses' smooth functioning. Some of them are listed below, so read carefully.

  • No person can deal in or transfer any foreign exchange or foreign security to any person, not being an authorized person.
  • No person can make any payment to or for the credit of any resident outside India.
  • No person can receive otherwise through an authorized person, any payment by order or on behalf of any resident outside India.
  • For this clause, where any person in, or resident in, India received any payment by order or on behalf of any person resident outside India through any other person (including an authorized person) without a corresponding inward remittance from any place outside India, then, such person shall be deemed to have received such payment otherwise than through an authorized person;
  • No person can enter into any financial transaction in India in association with the acquisition, creation, or transfer of a right to acquire any asset outside India.

Explanation.—For this clause, "financial transaction" means making any payment to, or for the credit of any person, or receiving any payment for, by order or on behalf of any person, or drawing, issuing, or negotiating any bill of exchange or promissory note, or transferring any security or acknowledging any debt.

Holding of Foreign Exchange

No person resident in India must acquire, hold, own, possess, or transfer any foreign exchange, foreign security, or immovable property outside India.

Current Account Transactions

Any person can sell or draw foreign exchange to or from an authorized person if such sale or drawal is a current account transaction. But the Central Government can, in the public interest and consultation with the Reserve Bank, impose reasonable restrictions for current account transactions as prescribed.

Capital Account Transactions

  • Any person can sell or draw foreign exchange to or from an authorized person for a capital account transaction.
  • The Reserve Bank can, in consultation with the Central Government, specify the following:
  1. Any class or classes of capital account transactions that are permissible.
  2. The limit up to which foreign exchange can be admissible for such transactions.
  3. Any conditions which can be placed on such transactions.

Note: The Reserve Bank must not impose any restriction on the withdrawal of foreign exchange for payments due on amortization of loans or non-depreciation of direct investments in the course of business.

  • The Reserve Bank can, by regulations, restrict or regulate the following:

Transfer or issue of any foreign security by the following:

  1. A person resident in India
  2. A person resident outside India
  3. Any branch, office, or agency in India of a resident outside India

Any borrowing or lending in foreign exchange in any form or by any name called.

Any borrowing or lending in rupees in any form or by any name called between a person resident in India and a person resident outside India.

  • Deposits between person resident in India
  • Deposits between person resident outside India.
  • Export, import, or holding of currency or currency notes.
  • Transfer of immovable property outside India, other than a lease not exceeding five years.
  • Acquisition or transfer of immovable property in India, other than a lease not exceeding five years.
  • Giving of a guarantee or surety in respect of any debt, obligation, or other liability incurred by the following:
  1. A person resident in India and owed to a person resident outside India
  2. A person resident outside India
  3. A person resident in India can hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside India if such currency, security or property was acquired, held, or owned by such person when he was resident outside India or inherited from a person who was resident outside India.
  4. A person resident outside India can hold, own, transfer or invest in Indian currency, security or any immovable property situated in India if such currency, security or property was acquired, held or owned by such person when he was resident in India or inherited from a person who was resident in India.
  5. The Reserve Bank can, by regulation, prohibit, restrict, or regulate the establishment in India of a branch, office or other places of business by a person resident outside India for carrying on any activity relating to such branch, office or other places of business.

Export of Goods and Services

  • Every exporter must furnish a declaration containing true and correct material particulars to the Reserve Bank. The declaration must include the amount of the full export value. Suppose the full export value of the goods is not ascertainable at the time of export. In that case, the value that the exporter, regarding the prevailing market conditions, expects to receive on the sale of the goods in a market outside India.
  • Every exporter must furnish to the Reserve Bank such information as required to ensure the realization of the export proceeds by an exporter.
  • The Reserve Bank can ensure that the full export value of the goods or such reduced value of the goods as the Reserve Bank determines, having regard to the prevailing market conditions, is received without any delay, direct any exporter to comply with such requirements as it deems fit.
  • Every exporter of services must furnish to the Reserve Bank or other authorities a declaration containing the true and correct material particulars concerning payment for such services.

Realization and repatriation of foreign exchange

Suppose any amount of foreign exchange is due or has accrued to any person resident in India. In that case, such a person must take all reasonable steps to realize and repatriate such foreign exchange to India within the specified period specified by the Reserve Bank.

Exemption from realization and repatriation in certain cases

The provisions of the realization and repatriation must not apply to the following:

  • Possession of foreign currency or foreign coins by any person up to a limit as the Reserve Bank has specified.
  • Foreign currency account held or operated by such person or class of persons and the limit upto which the Reserve Bank may specify.
  • The foreign exchange acquired or received before the 8th day of July 1947 or any income arising or accruing thereon which is held outside India by any person in pursuance of a general or special permission granted by the Reserve Bank.
  • Foreign exchange held by a person resident in India up to such limit as the Reserve Bank may specify, if such foreign exchange was acquired by way of gift or inheritance from a person referred to in clause (c), including any income arising from there.
  • The foreign exchange acquired from employment, business, trade, vocation, services, honorarium, gifts, inheritance, or any other legitimate means up to such limit as the Reserve Bank may.

What makes our FEMA consultation unique

Registrationwala is one of India's leading FEMA consultancy specializing in-depth knowledge of Foreign Exchange Management Laws. We understand that the FEMA rules and Regulations can be quite confusing. And at times, the volatile nature of the rules can create more issues because of rapid changes.

To keep up with those changes, and to help your as per FEMA Act, our active FEMA Consultants in Delhi and Mumbai come together to provide help with a plethora of matters, including:

  • Consultation to foreign or NRIs on matters of investment in Indian business.
  • Helping you interpret the complex FEMA rules
  • Assistance and consultations about inbound and outbound investment.
  • Assistance in legal matters that include your litigation and representation in matters regarding foreign exchange management rules.
  • Conducting all the necessary legwork required to set up global business entities like joint ventures and whatnot.

So, what makes us the partner of choice when it comes to FEMA consultancy:

  1. Experience: We possess a vast industry experience in the field that's the FEMA. Our experts have absorbed the entirety of the Act's literature. With that, we provide only the best solutions to our clients.
  2. Professionalism: The cumbersome and complex Act that's FEMA requires the FEMA consultants to be patient, analytical, and, most importantly, professional. We never leave you midway in our services. In fact, we make sure that you only get the best results.
  3. Ethical services: When matters concern foreign monetary exchange, it's easy to attract towards cutting corners and do the bare minimum. As ethical FEMA consultants, we never only provide your bare minimum, but rather, we go beyond.

 

Eligibility Criteria for FEMA expert services in India  

Regardless of the scale of your business, we consider you eligible for our FEMA legal advisory services.

Documents Required for FEMA  Consultation in India

To provide the most robust FEMA legal advisory services, we will need from you:

  • Your ID proofs
  • Proof of your business
  • Your address proofs
  • And other documents pertaining to the services you require.

Process of acquiring our FEMA consultation services in India

The process of getting our FEMA legal advisory services is as follows:

  • Reach out to us with your requirements
  • Let us analyze your requirements
  • Give us the time within which you want the work to be delivered
  • Get a complete report.

Our Assistance to get the FEMA in India

Our Foreign Exchange Management Act experts will assist you in the following steps:

  • You reach out to us, and we jot down your requirements.
  • Then, we give you initial consultation.
  • If you like what we have to offer, we proceed.
  • Then, as per the services needed, we ask for the requisite documents and draft some independently.
  • We deliver the FEMA legal advisory service you're looking for.
  • We then finalize the process and leave you satisfied with our services.

Thus, if you're in the market for experienced, professional, and ethical FEMA consultants, you know Registrationwala will always help your back. Reach out to us with your requirements, and let our experts handle the rest. You can always connect with us for FEMA consultants in Delhi or FEMA consultants in Mumbai.

Frequently Asked Questions – FAQs FEMA Consultant

Q1. What does FEMA stand for?

A. The FEMA's full form is Foreign Exchange Management Act.

Q2. When did FEMA Act came into being?

A. Foreign Exchange Management Act or FEMA Act came into being in 1999.

Q3. What is the goal of the FEMA Act?

A. The goal of the FEMA Act 1999 is to promote external payments and trades across borders. 

Q4. What are the objectives of the FEMA regulations?

A. The primary FEMA objectives are to enforce the Foreign exchange management regulations:

Giving power to the central government to impose restrictions on the matters of foreign exchange and foreign payments

  • Imposing restrictions on free transactions.
  • Imposing restrictions on foreign payments from outside the country
  • Watching over the person authorized with foreign exchange matters
  • Empowering the RBI with the ability to impose restrictions on selling and drawing foreign exchange.
  • Permitting Indian residents to own immovable property or properties in foreign countries, bringing foreign currencies into the country, and inheriting any property outside the country.

Q5. What are the different guidelines issued under FEMA to regulate import-export forex transactions?

A. To establish FEMA guidelines for import and export, we must establish and enforce FEMA guidelines related to the following:

  • Importing rules
  • Export realization
  • Outward remittance
  • Inward remittance

Q6. What are the pre-conditions that must be satisfied by a FEMA consultancy seeker?

A. Regardless of the scale of your business, we consider you eligible for our FEMA legal advisory services.

Q7. What documents are required to be submitted before seeking FEMA expertise on different subject matters?

A. To provide the most robust FEMA legal advisory services, we will need from you:

  • Proof of Identification
  • Proof of the Business
  • Proof of Residence
  • And other documents pertaining to the services you require.

Q8. How to get the FEMA legal advisory services in India?

A. The process of getting the FEMA legal advisory services is as follows:

  1. Reach out to the FEMA experts with your requirements
  2. Let them analyze your requirements
  3. Give the FEMA consultants the time within which you want the work to be delivered
  4. Get a complete report.

Q9. What are the various services offered by the FEMA consultants by the Registrationwala?

A. The Registrationwala FEMA consultants have carved their own unique space in the field of FEMA Consultancy. As such, we provide our vast and focused outlook in the following FEMA advisory services:

  • Consultations for forex transactions
  • Assistance in the routine matters involving interpretation of FEMA rules
  • Advisory services for inbound & outbound investments
  • Litigation assistance and representation before authorities
  • Assistance with setting up liaison, branch, and project offices in and outside India
  • Professional business licensing services
  •  Annual return filing services.

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