FEMA Compliance Services: Simplifying Cross-Border Transactions
In today’s interconnected economy, individuals and businesses increasingly engage in cross-border financial transactions—be it through foreign investments, remittances, acquisitions, or international business operations. However, these transactions are governed by a robust regulatory framework under the Foreign Exchange Management Act (FEMA), 1999, which mandates strict compliance with rules laid down by the Reserve Bank of India (RBI) and other regulatory bodies.
At B M Bhanushali & Associates, we specialize in end-to-end FEMA advisory and compliance services. Whether you’re an NRI investor, an Indian company receiving FDI, or a startup raising capital from overseas, our team ensures your cross-border transactions are legally compliant, tax-efficient, and smoothly executed.
Foreign Remittance Advisory & Reporting
We provide complete support in handling inbound and outbound remittances, including those under the Liberalised Remittance Scheme (LRS), ensuring each transaction is properly categorized, documented, and reported. This includes:
-
Assistance with Form 15CA/CB and related filings
-
Remittance structuring to reduce tax impact
-
Documentation and liaison with banks and AD (Authorised Dealer) Category-I banks
-
Monitoring limits under LRS and RBI guidelines
Foreign Direct Investment (FDI) & Overseas Direct Investment (ODI)
Whether you are receiving foreign investment into your Indian entity or making outbound investments abroad, we ensure compliance with FEMA’s regulatory provisions:
-
FDI structuring and entry route advisory (automatic vs approval route)
-
Assistance in filing FC-GPR, FC-TRS, and other FDI-related forms on FIRMS portal
-
ODI advisory, Form ODI filing, and post-investment compliance
-
RBI approval liaison, if required
External Commercial Borrowings (ECB) & Loans
Raising debt from foreign lenders comes with specific FEMA conditions and reporting norms. We provide:
-
Structuring of ECBs under permitted tracks
-
Loan registration and monthly return filings
-
End-use planning and compliance monitoring
-
ECB reporting (Form ECB, Form 83, etc.) and documentation
FEMA Compliances for NRIs & Foreign Nationals
We guide NRIs and foreign nationals in managing their India-linked financial transactions, including property purchase, bank accounts, and repatriation:
-
Repatriation of sale proceeds from property
-
Opening and compliance of NRO/NRE/FCNR accounts
-
Gift and inheritance advisory for cross-border transactions
-
Tax and regulatory planning for NRIs with Indian income
RBI Approvals and Representations
Certain transactions fall outside the scope of general permissions and require prior approval from the RBI. We assist in:
-
Drafting and submission of RBI applications
-
Representing clients in cases of compounding of contraventions
-
Responding to queries from the RBI or Authorised Dealers
-
Post-approval compliance and monitoring
FEMA Health Checks & Audit Assistance
We offer FEMA diagnostic reviews and internal audits to ensure your organization is fully compliant and ready for scrutiny by regulators:
-
FEMA health check reports identifying gaps and risks
-
Rectification planning for past non-compliances
-
FEMA audit support and representation during regulatory reviews
Why FEMA Compliance Matters
Non-compliance with FEMA can attract severe penalties, prosecution, and reputational damage. As cross-border flows continue to grow—especially in the areas of fintech, startups, and international real estate—understanding the nuances of FEMA is no longer optional. Our services help you:
-
Avoid regulatory penalties and legal setbacks
-
Ensure smooth capital flows and business continuity
-
Make informed, strategic decisions about foreign investments and remittances
-
Stay updated with ever-evolving RBI regulations and circulars
Why Choose Us for Taxation Services?
Proven Expertise
Holistic Approach
Technology-Driven Solutions
Personalized Service
01
Understand Your Needs
Every journey begins with understanding. We take the time to listen, analyze, and comprehend your unique requirements—whether personal or corporate. This ensures our solutions align perfectly with your goals
02
Strategize Tailored Solutions
Drawing on our expertise and cutting-edge tools, we craft bespoke strategies that address your challenges, optimize opportunities, and drive growth. Our recommendations are always precise, actionable, and designed for long-term success
03
Deliver Excellence
With a commitment to impeccable execution, we bring our strategies to life. From seamless implementation to ongoing support, we ensure your financial journey is not just smooth but transformational
Do all foreign remittances require RBI approval?
Not necessarily. Many transactions are permitted under the automatic route or LRS. However, certain categories still need specific RBI approval, especially if they breach sectoral caps or prescribed limits.
Can FEMA violations be regularized?
Yes, FEMA provides a compounding mechanism for rectifying past non-compliances. We help draft, file, and follow through on compounding applications.
What’s the difference between FEMA and FCRA?
FEMA governs foreign exchange transactions, while FCRA regulates foreign contributions to charitable institutions. Both may apply to NGOs and Trusts receiving foreign funds.
How often does FEMA law change?
The RBI issues frequent updates, circulars, and clarifications. We stay on top of these changes to ensure clients always remain compliant.
Do startups need FEMA services?
Absolutely. Any foreign equity infusion, ESOPs to foreign employees, or even outbound investments must comply with FEMA. Early-stage mistakes can snowball into major regulatory issues during funding rounds or exits.