Foreign Exchange Management Act (FEMA)
Compliance advisory under the Foreign Exchange Management Act (FEMA), 1999, covering NRI accounts, remittances and cross-border transactions.
The Foreign Exchange Management Act (FEMA), 1999 governs all foreign exchange transactions in India, including the accounts NRIs can hold (Non-Resident External, Non-Resident Ordinary and Foreign Currency Non-Resident accounts), permitted investments, borrowing and lending, and remittance limits. FEMA compliance sits alongside — but is distinct from — income tax compliance, and non-compliance can attract separate penalties under the Enforcement Directorate's purview.
What our FEMA advisory covers
FEMA governs the mechanics of moving money and holding assets across borders — separate from, but closely linked to, tax compliance.
- Advising on NRE, NRO and FCNR account structuring
- Compliance for property purchase and sale by NRIs
- Remittance limits under the Liberalised Remittance Scheme and NRO repatriation rules
- Foreign investment reporting requirements
- Advising on borrowing and lending between residents and non-residents
- Regularising past FEMA non-compliance where needed
What this service includes
Keeping your cross-border transactions on the right side of exchange control law.
Account Structuring
Advising on the right mix of NRE, NRO and FCNR accounts for your situation.
Property Transactions
Ensuring purchase, holding and sale of Indian property by NRIs meets FEMA requirements.
Investment Reporting
Assisting with reporting obligations for foreign investment into and out of India.
Compliance Regularisation
Helping resolve and regularise historic FEMA non-compliance.
Our process
From initial consultation to completion.
Transaction Review
Understanding the cross-border transaction — investment, remittance, or asset transfer — you're planning or have undertaken.
Regulatory Mapping
Identifying the specific FEMA regulations and RBI circulars that apply.
Compliance Structuring
Setting up the correct accounts, approvals and documentation before you proceed.
Filing & Follow-up
Handling any required reporting and staying available if queries arise later.
Why FEMA compliance is distinct from tax compliance
What sets our approach apart.
Two separate regulators, two separate risks
FEMA is enforced independently of the Income Tax Act, and non-compliance carries its own penalty regime under the Enforcement Directorate.
Account type drives what's permitted
Whether a transaction is allowed at all often depends on which account — NRE, NRO or FCNR — is used, not just the nature of the transaction.
Regularisation options exist
Past non-compliance can often be regularised through the RBI's compounding mechanism, but this needs to be approached correctly and promptly.
FEMA questions answered
What people ask before engaging us.
Need clarity on a cross-border transaction?
We'll help you structure it in line with FEMA.
