Foreign Exchange Regulatory Compliance

The Foreign Exchange Management Act, 1999 (FEMA) governs cross-border transactions in India, ensuring compliance with RBI regulations on foreign exchange, capital flows, and trade. It is the cornerstone of India’s regulatory framework for foreign exchange transactions. It governs inflows and outflows of foreign currency, capital account transactions, current account dealings, and compliance for businesses engaged in international trade and investment.

MKNCO delivers support services on FEMA related matters as detailed below:

1. Advisory & Structuring

• Guidance on foreign direct investment (FDI) and outbound investments.
• Structuring of cross-border transactions in line with FEMA and RBI guidelines.
• Advisory on current account transactions (imports, exports, remittances).
• Assistance with capital account transactions (equity, debt, real estate investments).

2. Registrations & Approvals

• Support in obtaining approvals from the Reserve Bank of India (RBI).
• Assistance with Unique Identification Numbers (UINs) for branch/liaison offices of foreign entities.
• Registration under Entity Master & Single Master Form (SMF) for reporting foreign investments.

3. Compliance & Documentation

• Preparation and filing of FEMA-related returns and reports.
• Assistance with realisation and repatriation of foreign exchange.
• Documentation for External Commercial Borrowings (ECBs) and overseas investments.
• Support in filing Annual Performance Reports (APRs) and other statutory submissions.

4. Litigation & Representation

• Representation before Adjudicating Authorities in case of contraventions.
• Assistance with compounding applications for FEMA violations.
• Advisory on penalties, appeals, and dispute resolution