FEMA Certification Consultants in Delhi

Foreign direct investment, or FDI, is the direct investment made by a person or company from another country into the manufacturing or business of a nation, either using company acquisition in the target nation or operational expansion of an existing company there. At JJJ and Company LLP, FEMA Consultancy in Delhi NCR, we plan FDI for our clients by getting to know their businesses and figuring out how to invest in India. Additionally, FDI is limited in several industries to a certain extent. We comprehend the nature of our client’s businesses and assist in calculating the level of FDI in a particular sector.

We provide our clients with incredibly trustworthy FEMA consultancy services. The full spectrum of foreign exchange law is covered by the FEMA Regulations Services, which includes:

1. Money invested in India (Overseas Investments)
2. Foreign businesses and residents investing in India (FDI)
3. NRIs, PIOs, the Foreign Investment Promotion Board, external commercial borrowings, etc., are examples of non-resident Indians.

The Foreign Exchange Management Act of 1999 governs foreign currency transactions in India. Instead of controlling foreign exchange, economic liberalization’s primary focus has been promoting it. FEMA regulates all foreign currency transactions; parties must abide by its rules wherever relevant. The act’s preamble states that its purpose is to codify and update foreign exchange laws to facilitate international trade and payments and support the orderly growth and upkeep of the Indian foreign currency market.

At JJJ and Company LLP, FEMA Certification Consultants Services in Delhi, we offer the following FEMA and RBI-related services:

1. Compliance with the process includes certification from chartered accountants for repatriating income and assets from India.
2. Submitting requests to the Reserve Bank of India for the purchase or sale of shares, debentures, and securities both directly to and from Indian residents as well as those living abroad.
3. Transfer of shares from inhabitants of India to foreigners.
4. Establishing a joint venture (JV).
5. Forming a partnership or partnership with an NRI or someone of Indian descent.
6. Other FEMA/RBI advisory services, etc.
7. Issue of Statutory Certificates by RBI and FEMA regulations.

The Foreign Exchange Management Act (FEMA), which governs the flow of funds from foreign nations to India and vice versa, serves as the primary legal framework. The act was established in 1999, and in addition to regulating money, it lists the FEMA requirements that a corporate organization must adhere to.

This law improved the efficiency of international trade, promoted foreign investment, and increased financial transparency and balance of trade payments.

Due to globalization and the rapid expansion of foreign investment, FEMA is becoming increasingly important. Preventing penalties for non-compliance with FEMA and monitoring sectoral and investment caps are also essential.

Therefore, businesses must adhere to FEMA-specified laws and regulations. This procedure can streamline international business operations and help them manage their regulatory obligations favourably. We also provide many other services like Internal Audit Services, Transfer Pricing Consultant, GST Litigation Consultant, Income Tax Litigation, and many more.

The following people are qualified to get services from FEMA:

• Individuals – Indian non-residents (NRIs).
• Companies.
• People who are from abroad.
• High Net Worth People.
• Partnership and sole-proprietorship issues.
• Institutional investors from abroad.

The Reserve Bank of India (RBI) is India’s principal regulatory body for foreign exchange. NRIs and company accounts will be subject to the Income Tax Act for tax calculation purposes. In addition to the rules mentioned above, all interactions with the company will be governed by the Companies Act of 2013. Capital instruments will be governed by the Securities Law (SEBI).

ECB Compliance Advisory: External commercial borrowings are loans obtained by businesses and organizations in the public sector from international companies and institutional investors. The ECB offers a higher interest rate than loans taken out in India.

• Acquiring movable real estate—Anyone outside India can purchase real estate there. The Foreign Exchange Management Act of 1999 (FEMA) permits this, and FEMA and RBI likewise govern buying real estate outside India.
• Foreign investors’ exit strategies—International investors prefer withdrawing their money when their investment yield is insufficient. Using such options requires that foreign investors fulfil a minimum lock-in period.
• Creating a global business under FEMA allows companies to establish themselves outside India.
• Bank accounts for NRIs—Non-resident Indians can open various bank accounts in India, including FCNR, NRE, and NRO Accounts.
• FEMA Business and Share Valuation—The process of determining the actual value of a firm or a share is known as business and share valuation. A chartered accountant or  FEMA Certification Consultant registered with SEBI calculates using widely accepted methods.
• Lending to NRIs – Loans from Indian businesses or any resident Indian may be given to NRIs.
• NRI Investment Compliance with FEMA – The avenues taken for NRI investments must adhere to FEMA regulations.
• Investments Made By NRIs That Are Not Returned – Investments made by NRIs that can’t be remitted back to the investor’s native nation.
• Foreign Investment FEMA Compliance in India—This will cover foreign direct investment and the routes that fall under it.
• Foreign company or partnership investment in India—This section outlines the numerous investment methods that international businesses may use to invest in India.

Substantial Compliances under the provisions of FEMA 

Annual Return on Foreign Assets and Liabilities – An Annual Return for Foreign Liabilities and Assets must be filed by all Indian businesses that have received FDI or made ODI in any prior year, including the present year.

An Indian company is not required to file the FLA Return if it did not make any FDI or ODI investments before the end of the reporting year. However, the return must be submitted annually if it has unpaid FDI or ODI.

Report on Annual Performance—Indian parties or residents who have made Overseas Direct Investments (ODI) must submit an annual performance report. Additionally, on or before December 31st of each year, joint ventures and wholly owned subsidiaries (WOS) outside India must submit an Annual Performance Report in Form ODI Part II to the AD bank.

Outside Commercial Lending, the RBI must receive a monthly “ECB 2 Return” from borrowers detailing all ECB transactions through an AD Category-I Bank.

Advance Reporting Form – An Indian organization that receives foreign investment for the issuance of shares or other qualified securities under the FDI Scheme must report the specifics of the amount of consideration to the Reserve Bank’s concerned Regional Office via its AD Category I bank within 30 days of the date of issue of offers.

• Formula FC-GPR—The Foreign Exchange Management Act 1999 authorizes the RBI to issue this form. When an organization distributes its shares to outside investors in exchange for foreign investment, it must promptly record the specifics of such a share allocation with the RBI and use the FC-GPR form (Foreign Currency-Gross Provisional Return).
• FC-TRS Form—Foreign Currency Transfer is a Form FC-TRS. When shares or convertible debentures of an Indian firm are transferred from a resident to a non-resident/non-resident Indian or vice versa for sale, this form must be filled out.
• ODI Form—Any Indian citizen or entity interested in investing in the global market must complete Form ODI. Additionally, they must send the share certificate or proof of investment against investment to the designated AD within 30 days if the investment is in a joint venture or wholly owned subsidy.

While FERA views all forex-related offenses as criminal charges, FEMA views them as civil offenses. As a result, it qualifies as one of FEMA’s features.

Other Essential Features And Guidelines Of FEMA Compliance Are As Follows:

• FEMA will not cover Indians residing abroad. A method is used to locate an Indian citizen’s residence. The first step is to calculate how many days an individual spent in India during the preceding fiscal year (182 days or more to be a resident). Offices, branches, and agencies may be counted as individuals to determine Indian residence.
• FEMA grants the federal government the authority to regulate and restrict three things: remittances from or to India, payments to or from India, currencies, and international security agreements.
• It identifies the areas in and around which the Reserve Bank of India (RBI) or the government is necessary to acquire or hold foreign exchange.
• Foreign exchange transactions are divided into two groups by FEMA:

1. Capital Account
2. Current Account

Capital account transactions aim to adjust assets and liabilities inside and outside India and those of a person outside India. Therefore, a capital account transaction changes the overseas assets and liabilities of an Indian resident in a far-off country or vice versa. A current account can be used for any other kind of transaction.

Penalties apply to people and businesses who violate the regulations, directives, and limits set forth by FEMA. The fine could be up to Rs 2 lakh or triple the amount involved in the breach. Extra penalties may also be applied, with the highest fine amounting to Rs. 5,000 for each additional day of infraction. As a result, it is wise of you to abide by all FEMA rules.

Documents for Compliance under FEMA

Different documentation will be needed depending on the type of service required for compliance under FEMA.

Government Approval Route – From the entities that are both the investor and the investee companies:

• The Memorandum and Articles of Association with Incorporation Certificate;
• Board Resolution;
• The preceding financial year’s audited financial statement;
• A list of all overseas collaborators of an investor entity or company, along with their names, proofs of identification, and addresses;
• The shareholding patterns of the investee company before and after the investment.
• An affidavit stating all the information given.
• A copy of the shareholders’ agreement, technology transfer agreement, trademark assignment agreement, and brand assignment agreement in the case of current ventures (as applicable).
• A copy of the downstream notice.
• A copy of any prior FIPB, SIA, or RBI approvals pertinent to the current request.
• Where the investment has already flowed in, a relevant Foreign Inward Remittance Certificate (FIRC).
• The High Court’s order in the event of any arrangement plan.
• Acceptance of the valuation certificate.

1. Who are FEMA consultants in Delhi?
FEMA consultants in Delhi assist companies and people in Delhi following the International Exchange Management Act (FEMA) for international transactions, investments, and remittances.

2. What do FEMA consultancy services include?
FEMA consultancy services include legal advice for overseas transactions, RBI rules, remittances, compliance, and permissions for foreign ventures.

3. Why do I need FEMA Consultants in Delhi?
FEMA Consultants in Delhi makes sure your overseas purchases abide by Indian rules, thereby preventing RBI legal problems and fines.

4. How can FEMA certification consultants help my business?
For hassle-free overseas transactions, FEMA certification consultants assist companies through paperwork, approvals, and compliance with FEMA rules.

5. Where can I get FEMA certification services in Delhi?
Expert consultants like JJJ And Company LLP, who manage compliance, RBI clearances, and legal processes for overseas transactions, provide FEMA certification services in Delhi.

6. What is FEMA consultancy in Delhi NCR?
Under FEMA guidelines, FEMA consultancy in Delhi NCR assists companies with international commerce, foreign direct investment (FDI), overseas loans, and remittance compliance.

7. Who needs FEMA compliance services?
Any company or person handling international investments, remittances, or overseas transactions needs FEMA compliance services to satisfy Indian laws.

8. How long does it take to get FEMA certification?
The transaction type determines the timing, yet, with the correct FEMA consultants, it may be finished in a few weeks. To know more, contact us!