Knowledge Base

Enforcement Directorate and its major functions under FEMA
Enforcement Directorate (ED) can be defined as a special financial investigation and economic intelligence agency which is burdened with the responsibility of forcing economic laws and fighting economic crimes in India. Its parent organization is the Department of Revenue of the Ministry of Finance, Government of India and it has its headquarters in the heart of the national capital, New Delhi.
By CA. Sachin Jindal
Last update on April 6,2021
Authorized Dealer under FEMA
An authorised person under FEMA is an authorised dealer, money changer, off-shore banking unit, or any other person for the time being authorised under sub-section (1) of Section 10 of the Act to deal in foreign exchange or foreign securities. There are mainly 4 categories of authorised persons under FEMA and for an individual to become an authorised person one has to submit the necessary applications along with all the relevant required documents to the Reserve Bank of India.
Last update on April 6,2021
RBI Mandates Legal Entity Identifier (LEI) for Entities w.e.f 1 April 2021
The Reserve Bank of India, on 5th January 2021 introduced a legal entity identifier (LEI) for the transactions of and above 50 crores or INR 500 million through entities (non-individuals) utilizing Reserve Bank-run Centralised Payment Systems i.e. RTGS (Real-time Gross Settlement) and NEFT (National Electronic Funds Transfer).
By CA. Kavit Vijay
Last update on March 24,2021
Foreign Law firms can not Establishes Branch Office (BO) / Liaison Office (LO) / Project Office (PO) or any other place of business in India
Hon’ble Supreme court, in the case of the Bar Council of India vs A.K. Balaji & Ors. vide intermine order, has directed RBI not to grant any permission to any foreign law firm for opening of Liaison Office (LO) in India after date of issuance of such order. Hence, RBI issued directions vide Notification No. RBI/2015-16/215 dated 29th October, 2015 that no foreign law firm shall be permitted to open any LO in India till further orders/notification in this regard.
Last update on January 5,2021
Equalisation levy on non-resident e-commerce operators | Mandatory to Have PAN
Vide Finance Act, 2020, Ministry of Finance amended the provisions related to Equalisation levy and has extended the scope of same to cover non-resident e-commerce operators operating in India without having any permanent establishment in India such as Zoom, netflix, ebay etc. The amendment was given effect from 1st April, 2020.
Last update on November 6,2020
Residential status as per FEMA | NRI as per FEMA
Applicability of provisions of FEMA are based on the residential status of a person, i.e., a person resident of India has more liberty under FEMA as compared to a NRI as per FEMA or person resident outside India. Therefore, to check the extent of applicability of FEMA provisions, it is important to first check the residential status as per FEMA for a person.
Last update on October 27,2020
Process of RBI approval to open Liaison Office (LO)| Branch office (BO)| Project office (PO) in India
Various foreign entities are opting for various methods to set up their entities in India such as set-up a subsidiary in India with Foreign Company as holding, Project Office, Liasoning Office, Branch Office, Direct Investment in Indian Companies etc.
Last update on October 26,2020
Process of closure of Project office/ Liaison Office/Branch Office
Provisions related closure of Project Office/Liaison Office/Branch Office are regulated by Foreign Exchange management Act read with FEM (Establishment in India of Branch or Office or Liaison office or a project office or any other place of business) Regulations, 2016 and Master Directions No. 10/2015-16 dated 1st Jan, 2016.
Last update on October 26,2020
Permanent Account Number to Non-Resident Indians | NRI PAN
Permanent Account Number (“PAN”) issued by the Income Tax Department is a mandatory unique number required for the purpose of all Income tax related compliance in India. PAN also acts as an Identity proof of Indian residents. However, persons who are non-residents and are having presence in India for limited purposes may also need to […]
By CA. Sachin Jindal
Last update on September 23,2020
PIO Card | Person of Indian Origin
Government provides various benefits and relaxations to people staying out of India. These people are issued a card known as “Person of Indian Origin card i.e. PIO Card, to avail such benefits.
Last update on September 23,2020

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