FDI Compliance

FEMA & FDI Compliance

Navigate foreign investment rules with full confidence.

About FEMA & FDI Compliance

Any foreign investment into or out of India is governed by the Foreign Exchange Management Act (FEMA) and the RBI's FDI policy, which set out which sectors allow foreign investment, under what caps, and through the automatic or approval route. Compliance involves structuring the investment correctly, pricing shares as per RBI valuation norms, receiving funds through proper banking channels, and filing the prescribed reports such as FC-GPR, FC-TRS and the annual FLA return within strict deadlines. Non-compliance can attract heavy penalties and compounding proceedings. We provide end-to-end FEMA and FDI advisory — from structuring and eligibility checks to all RBI reporting — so your cross-border transactions are fully compliant.

Who needs this

Companies receiving FDI, making overseas investments, or with any cross-border equity flows.

Documents required

The process — step by step

  1. Check sector eligibility, caps and route
  2. Structure the investment and share pricing
  3. Ensure funds flow through banking channels
  4. File FC-GPR / FC-TRS and other reports
  5. Set up ongoing FLA and compliance calendar

Timeline & fees

Timelines and government fees are indicative and subject to processing by the relevant authority. Approval and its timing are decided by the authority and cannot be guaranteed.

Frequently asked questions

What is the automatic route?

Sectors where FDI is allowed without prior government approval, subject only to reporting to RBI.

What is the FLA return?

The annual Foreign Liabilities and Assets return, filed with RBI by 15 July each year.

What happens on late FDI reporting?

It attracts penalties and may require compounding proceedings with the RBI.

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Tax Guider — A unit of Corpzen Advisors Private Limited, Chennai, Tamil Nadu.

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