FEMA Compliance · RBI Reporting

RBI FEMA Compliance manage your foreign exchange transactions and RBI reporting obligations with precision and confidence.

FEMA compliance covers the full spectrum of obligations under the Foreign Exchange Management Act — from inbound FDI reporting and outbound ODI compliance to ECB filings, current account transactions, and regulatory approvals — ensuring every cross-border transaction is structured, reported, and documented correctly.

The Foreign Exchange Management Act, 1999 (FEMA) governs all cross-border transactions involving Indian residents and entities — including the receipt of foreign investment, remittances abroad, overseas direct investment, external commercial borrowings, and current account transactions. Non-compliance with FEMA — whether through delayed reporting, incorrect route classification, or unpermitted transactions — constitutes a contravention attracting penalties under the Act.

FEMA compliance is not a one-time exercise. Every foreign investment event triggers a reporting obligation — share allotments require FC-GPR within 30 days, share transfers require FC-TRS within 60 days, and overseas investments require Part I and Part II filings. The annual FLA Return must be filed by 15 July each year. Each of these has specific documentation requirements, prescribed forms, and timelines that, if missed, require compounding with the RBI.

At Beyonte Compliances, we provide end-to-end RBI FEMA compliance management — covering transaction structuring, reporting, annual filings, and compounding of past contraventions — across the full range of cross-border transactions for Indian companies, their promoters, and foreign entities with India operations.

What Our RBI FEMA Compliance Service Covers

FDI Compliance & FC-GPR Filing

Managing FEMA compliance for inbound foreign direct investment — pricing, share allotment, and Form FC-GPR filing within the 30-day RBI deadline.

FC-TRS Filing for Share Transfers

Filing Form FC-TRS for transfers of shares between resident and non-resident parties within the prescribed timeline and pricing compliance.

ODI Compliance

Managing Overseas Direct Investment compliance under the Foreign Exchange Management (ODI) Rules — including Form ODI filings, annual performance reports, and disinvestment reporting.

ECB Compliance

Filing Form ECB, ECB-2, and managing end-use compliance and reporting for External Commercial Borrowings from foreign lenders.

Annual FLA Return

Filing the Annual Return on Foreign Liabilities and Assets (FLA Return) on the FLAIRS portal by 15 July each year for entities with outstanding FDI or ODI.

Convertible Note FEMA Compliance

Managing FEMA compliance for convertible notes issued by DPIIT-recognised startups to foreign investors — including RBI reporting and conversion filings.

Compounding Applications

Preparing and filing RBI compounding applications to regularise past FEMA contraventions — delayed filings, missed returns, or incorrect route classification.

FEMA Transaction Structuring

Advising on the FEMA implications of proposed cross-border transactions — ensuring every transaction is correctly structured before execution.

Our Process

Transaction Assessment

Reviewing the proposed or completed cross-border transaction to identify the applicable FEMA provisions, route, pricing requirements, and reporting obligations.

Documentation Preparation

Gathering all documents required for the applicable FEMA filing — valuation report, KYC, incorporation documents, board resolutions, and investment details.

AD Bank Coordination

Coordinating with the Authorised Dealer bank to verify inward remittance details, obtain the FIRC/FIRA, and submit the filing through the prescribed channel.

RBI Filing & Submission

Filing the applicable form — FC-GPR, FC-TRS, FLA Return, ECB — on the FLAIRS or SRWTO portal within the prescribed timeline.

Acknowledgement & Record Maintenance

Obtaining the filing acknowledgement, maintaining the complete FEMA compliance record, and updating the compliance calendar for future obligations.

Why It Matters

✓Timely FC-GPR filing prevents compounding liability that can reach 300% of the transaction value

✓Correct FEMA route classification protects the company and its directors from enforcement action

✓Annual FLA Return compliance is mandatory for all entities with outstanding FDI or ODI

✓Compounding of past contraventions regularises the record before future fundraising or M&A transactions

✓ECB compliance ensures foreign borrowings are not characterised as equity in the hands of the RBI

✓ODI compliance enables outward investment without exposure to repatriation and reporting penalties

✓Clean FEMA record is a due diligence prerequisite for PE, VC, and foreign strategic investors

✓Pre-transaction structuring advice prevents contraventions before they occur

Frequently Asked Questions

Form FC-GPR must be filed on the FLAIRS portal within 30 days of the date of allotment of shares to the foreign investor. The filing must include the share allotment details, consideration received, valuation report, and the updated SMF reflecting the new shareholding. Delay beyond 30 days constitutes a FEMA contravention requiring compounding.

Under FEMA, contraventions are compoundable — meaning they can be settled by paying a compounding fee to the RBI rather than through adjudication proceedings. The compounding amount is typically calculated as a percentage of the transaction value or on a per-day basis for delayed filings, and can be substantial for long-delayed or high-value transactions.

All Indian companies and LLPs that have received Foreign Direct Investment or made Overseas Direct Investment — and have outstanding FDI or ODI as at 31 March — must file the Annual Return on Foreign Liabilities and Assets (FLA Return) on the FLAIRS portal by 15 July of each year. Failure to file is a FEMA contravention.

An RBI compounding application is a voluntary disclosure filed with the Reserve Bank of India to settle a past contravention of FEMA regulations. It involves disclosing the contravention, its background, and the period of delay — and paying the compounding fee assessed by the RBI. Compounding regularises the company's FEMA record and is typically required before executing subsequent regulated foreign exchange transactions.

Keep your foreign exchange transactions and RBI reporting obligations fully compliant.

Talk to our team about managing your FEMA filings, annual returns, and compounding applications.