The Foreign Exchange Management Act (FEMA) regulates foreign exchange transactions in India. Companies receiving foreign investment must comply with FEMA regulations and RBI reporting requirements.
Key FEMA Compliances
FC-GPR: Filed when issuing shares to foreign investors. FC-TRS: Filed for transfer of shares between residents and non-residents. Annual Return on Foreign Liabilities and Assets (FLA): Filed annually by companies with foreign investment.
FDI Policy
Foreign investment is permitted under automatic route or government approval route depending on the sector and investment amount.