Foreign Exchange Management Act, 1999 (FEMA) is the legislation which has been entrusted with the governance of foreign currency in India. The major objective of FEMA is to regulate external trade, balance the payments, encourage the orderly development, and maintain or regulate the foreign exchange market in India.
In simple words, we can say that FEMA regulates or act as a watchdog for all the transactions involving foreign exchange.
Foreign Exchange Management Act, 1999 regulates the foreign exchange market by enforcing restrictions and monitoring the transactions involving payments made/received to a person by any person outside India, forex, investments in foreign securities, etc. are some transactions which could be completed only after obtaining approval by the Reserve Bank of India under permitted route. The Reserve Bank of India (RBI) is the primary regulator for FEMA related matters. The ‘Enforcement Directorate’ (ED) is the enforcing authority along with RBI.
It is compulsory for each person to obtain registration by the person who is entering into any arrangement related to foreign exchange and failing to comply with FEMA requirements shall be an “offence” under FEMA provisions and shall invite penalties and prosecutions.
We, JKG Corporate Consultants LLP, offer a wide range of services related to FEMA compliances. Some of them are listed below:
- Consultancy in relation to transactions involving Foreign Exchange.
- Filing of Intimations and Reports to Reserve Bank of India.
- Retainership services and consultancy on routine matters which requires interpretation of Foreign Exchange Management Act, Rules, Regulations, Master Circulars and other allied acts.
- Assistance in obtaining approval from the Authorities.
- Representation before Auhtorities.
- Filing of various forms such as FCGPR, FCTRS etc.
- Consultancy related to External Commercial Borrowings and assistance in periodical compliance of ECB
- Advisory and Compliance related to FDI, Export, Import etc.
- Preparation of statutory registers and records for foreign exchange transactions
