FEMA or Foreign Exchange Management Act was presented by the central government of India in 1999. It is a regulatory act to welcome and support international payments and trading across the border. FEMA was mainly introduced as a replacement for the FERA or Foreign Exchange Regulation Act. FEMA was also designed to rectify the sundry loopholes and disadvantages of FERA. FEMA has initiated major economic amendments that focus on de-regularizing the economy towards having a more liberal outlook.
More Details About FEMA & Its Objectives
The prime objective of FEMA, for which it was designed by the Indian government, was to expedite external trade and (foreign) payments. Moreover, FEMA was primarily developed to help in the disciplined development and management of the Indian forex market. FEMA is instrumental in defining all the main formalities and operational steps to deal with foreign exchange transactions in the country.
Such transactions are divided into two segments; capital account transactions and current account transactions. As per the FEMA Act, the payment exchanges are calculated by the dealing records between two parties, wherein each party is from a different country. The dealings are in the form of goods, assets, or services.
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It is again sub-divided into two sections, namely; current account and capital account.
- Capital Account – This account involves capital transactions such as the remainder of the ‘Balance of Payment’. It also means the swift movement of capital in the Indian economy based on receipts and expenditure. A capital account acknowledges the inclusion of domestic investment in international assets and similarly, the sum amount of foreign investment in the domestic assets.
- Current Account – It comprises all trade of merchandise. All those financial transactions involving the inflow and outflow of cash to and from one or more countries in a year fall under the current account. The financial transactions in a current account are related to the trading of services, commodities, and rendering of incomes. While the current account can be taken as an indication of an economy’s real power and status. The balance of payment encompasses both capital and current accounts.
The Critical Role of FEMA Consultants
Foreign businesses that are desirous of investing in India and other non-resident Indians who need to adhere to FEMA regulations are required to look into FEMA Advisory Services. FEMA consultants are certified business professionals who possess exhaustive knowledge of domestic as well as foreign accounting procedures and can offer a wide range of financial services to their clients.
New-age accountants are all-rounders and do not bound themselves in a shallow niche but they are eager to explore all facets of accounting to remain in tune with the modern times. They showcase advanced accounting skills and expertise to offer IT accounting services. FEMA advisory services in India include guidance on funds repatriation, Indian investment laws, property transactions, managing financial affairs of foreign entities in India, and more.
Highlighting Features of Reliable FEMA Consultants
Accounting Skills & Strategies
Business survival depends on your financial accounting skills. This also veers your business in a particular direction and sets the trajectory for optimum business growth. This is the primary reason why you need to follow the specified accounting rules laid down by different countries. Only a FEMA expert consultant can have an expansive grasp of related information.
Qualified financial accountants and analysts can help shape your business so that it can be cast in any type of accounting. Making your business flexible and receptive to external regulations is one of the important duties of a financial consultant.
Overseas Business Ventures
You may be unsatisfied with your business ventures within your country and may want to explore foreign business markets. Experienced FEMA experts can guide you to understand the complex laws that govern foreign businesses. By leveraging the information, you can attempt to start a business venture in other countries.
FEMA advisory service providers can also double over as tax consultants and implement smart policies in your organization. This is crucial as taxation laws can be different for native businesses as compared to foreign businesses. Implementing supportive policies can lessen your burden of taxes, as a foreign entity commencing business in India.
FEMA Consultant as Forensic Accounting Expert
A FEMA professional can have many aces up his sleeves, he can provide forensic accounting services and follow your investment trail to make an appropriate report. With quality training and vast background knowledge, these experts can think of a hundred ways when they glance at business transactions. Using their adept reserves and investigative techniques, they can quickly find out about any kind of suspicious or fraudulent transaction details. A FEMA advisory service expert will have access to all types of advanced tools and technological support at his disposal to find more info on deceitful or misleading activities and can develop preventive measures for future transactions.
Using High-Tech Tools & Technologies
In sync with all new technological developments and high-tech tools, financial consultants can incorporate these technologies for their accounting purposes. A FEMA expert consultant will have an upper hand over such advanced mechanisms. Such qualities are used successfully in offering tailored services to upgrade your business and give you an in-depth understanding of even the minutest details or intricacies of your financial accounts much faster. Using newly updated technologies can promote your business and keep your financial accounts in prime condition.
Why Seek VJM Global Services For FEMA Regulations?
Reputed FEMA expert VJM & Associates LLP is an established leader in providing extensive FEMA-related financial solutions and regulatory services. Team VJM with extensive global business exposure offers high-end FEMA advisory services to stabilize the traffic caused by issues concerning foreign exchange transactions. Furthermore, FEMA laws are regularly updated and revised by the Indian government. Only a trained FEMA advisory team can deal with the complex structure of the foreign exchange rules and regulations.
VJM FEMA advisory consultants offer substantial assistance to clients with business investment plans in foreign nations. With a proficient team of consultants keen on providing impactful answers and valuable support to establish your domain in the competitive global market, you can easily tide over the labyrinth of foreign exchange policies.
