FEMA Compliance: FCGPR, FCTRS, and FLA
Foreign Exchange Management Act (FEMA) compliance is crucial for businesses receiving foreign investments, transferring shares between residents and non-residents, or reporting financial liabilities. Non-compliance can lead to severe penalties, making it essential to adhere to RBI guidelines and FEMA regulations.
At Advisorate, we offer end-to-end FEMA compliance services, covering FCGPR, FCTRS, and FLA reporting, ensuring your business meets all regulatory requirements hassle-free.
Key FEMA Compliances We Handle
Filing of FCGPR (Foreign Currency-Gross Provisional Return)
When a company receives foreign direct investment (FDI), it must report the transaction by filing Form FC-GPR with the Reserve Bank of India (RBI).
Who Needs to File?
Companies receiving FDI
Filing Deadline
Within 30 days from the allotment of shares
Key Documents Required
- Board resolution approving the allotment
- Foreign Inward Remittance Certificate (FIRC)
- KYC of the foreign investor
- Valuation report from a registered valuer (if applicable)
Filing of FCTRS (Foreign Currency Transfer of Shares)
Form FC-TRS is filed for transferring shares between residents and non-residents or vice versa, ensuring compliance with foreign exchange regulations.
Who Needs to File?
Companies with share transfers between residents and non-residents
Filing Deadline
Within 60 days from the date of receipt of payment
Key Documents Required
- Share Transfer Deed and Board Resolution
- Valuation Certificate from CA/Merchant Banker
- KYC Documents of the Buyer and Seller
- FIRC (Foreign Inward Remittance Certificate) or Bank Statement
FLA (Foreign Liabilities and Assets) Return
The annual FLA return captures the liabilities and assets between an Indian company and its foreign direct investors or overseas subsidiaries/associates.
Who Needs to File?
Indian companies with foreign investment or overseas investments
Filing Deadline
By July 15th each year
Key Documents Required
- Audited Financial Statements
- Details of Foreign Assets and Liabilities
- Details of Overseas Subsidiaries/JVs/Associates
- Certificate of Incorporation and Board Resolution
Timelines
Our FEMA Compliance Services
- End-to-End FEMA Compliance – Comprehensive assistance for all FEMA compliance requirements including documentation and filing.
- Expert Guidance – Our team of experts ensures accurate filings and timely submissions to stay compliant with RBI regulations.
- Regulatory Adherence – We stay updated with the latest RBI guidelines to keep your business compliant and penalty-free.
- Seamless Documentation – Hassle-free preparation and submission of necessary forms and reports required for compliance.
- Avoid Penalties – Protect your business from hefty fines and legal complications through our professional support.
Frequently Asked Questions
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