FEMA Advisory

The international business sectors have adopted the new policies and aspects to broaden the business opportunities in the foreign markets. The business scope is not restricted to a specific country or area, due to expansion of the international trade across the globe. With new strategies and foreign Compliance services the business enterprises are reaching their heights in the worldwide markets. Every country has its own sets of Rules & Regulations in concern to the foreign exchange affairs. 

The hands-on experience of VJM & Associates LLP with strategy formation and foreign compliances services, can structure your business in the most ideal way. With our compliance and advisory expertise we have been successfully structuring the businesses of our clientele.

FEMA Advisory & Compliance Services

Foreign exchange policy is a serious issue while performing a business in foreign countries. International taxation is a key factor that is interlinked with the foreign exchange management act. 

To minimise the traffic of foreign exchange transaction related issues, a distinct planning and FEMA Advisory or FEMA consultancy is essential to stand against the complexities of the foreign exchange laws and regulations. 

Thus, we offer a reliable FEMA advisory & compliance services to the clients for the expansion of the business in foreign countries. We have an efficient FEMA Consultants who provides effectual solutions to curve a rising domain in the international market by following the regulations of foreign exchange laws:

  • FEMA Consultant Service-  Suggestions of FEMA- Foreign Exchange Management Act 1999 Provisions
  • Inbound or Outbound collaboration- FEMA compliance services to promote a business in foreign market and Indian Markets
  • Foreign Investments- Strategic Planning for foreign investments under the regulations of FEMA
  • Institutional Planning- A definite planning of business matters, transactions and Agreements by following the FEMA guidelines
  • Foreign Enterprise Investments- We offer foreign exchange management consultancy services to the procedures under the regulations of FEMA laws
  • Statutory Compliance under FEMA- As per the guidelines of the FEMA laws and regulations
  • International Transactions Tax & Agreements- DTAA is a part of international taxation and FEMA. Thus, we provide effective solutions to the clients to reduce the overload of foreign transaction taxes and dual payment on the same income under the FEMA laws
  • Reserve Bank of India permission- Special permission is required from the RBI under the regulations of FEMA for e-filing, Forms & returns and foreign exchange tax filings etc
  • Project office, Liasoning office and branch office establishment in India under the FEMA Laws, compliance and procedures
  • External Commercial Borrowing- Borrowing from any individual Indian origin or Non-residents

Know More about FEMA

To regulate the international business prospects and transactions the Indian government has introduced the FEMA- Foreign Exchange Management Act 1999. By replacing the policies of the previous Foreign Exchange Regulation Act of 1973, the FEMA came into existence to control the foreign exchange transactions in India. The main objective & aspect of FEMA is to develop a law governing external trade and promote the Indian business sectors in the foreign market by following the Regulations of this act. The central government of India has formulated FEMA- Foreign Exchange Management Act, regulated by the (RBI) Reserve Bank of India to monitor the direct & indirect flow of foreign transactions. Various economic measures and reforms have been initiated by the Government to recover the loopholes of the FERA. The essential functions operate through RBI under the Regulations of FEMA are listed below:
  • Supervising the deals in international exchange and transactions by giving authority & permission for the foreign exchange dealings, excluding the specific provisions regulated under Section 3 in the Act
  • RBI never impose restrictions on the transactions related to the current account. Only the Central Government can take decisions after consulting with RBI under Section 5. However, prior approval is required for the transaction by RBI as per the FEMA Rules, 2000
  • Borrowing or issuing foreign security to Indian resident and vice versa
  • Controlling the overseas direct investments
  • FEMA consultant & compliance services related to the foreign exchange transactions
In India FEMA – Foreign Exchange Management act controls every foreign investments & business ventures. FEMA supervises every rules & regulations specified by the RBI. FEMA regulates every International business transaction and maintains correspondence with foreign countries. Hence, we have a team of expertise who offers strategic compliance and advisory services related to Foreign Exchange Management Act issues. We provide definite FEMA Consultant services on various foreign exchange or cross-border transactions with an intention to uplift the outbound & inbound investments.
The foremost objective is to introduce Foreign Exchange Management Act in India to facilitate business sectors for external trade & payments. As per the guidelines FEMA also maintains the Forex related grievances as civil offences where FERA consider it as a criminal offence. FEMA deals with the development of the Forex market in India and formalities associated with the international business transactions. The Foreign Exchange Management Act is classified into two categories- Current Account Transaction & Capital Account Transaction.

Frequently Asked Question Based On FEMA

The Foreign Exchange Management Act,1999 commonly known as FEMA is an act regulated by the Indian government to amend & govern the laws related with the foreign exchange matters to facilitate the external payments & trades for the development of the business structure in the international market.
  1. Foreign security purposes,
  2. Any individual residing in India or outside the country (NRI)
  3. Security that is regulated in public debt 1994
  4. Any financial, banking and insurance services
  5. Purchase & sale of any immovable property
  6. Export and import of any goods and services from a foreign country
  7. Any overseas transactions by a company with 60% ownership by an NRI
To operate a business in foreign country or to carry out any transaction in foreign currency, an individual needs to maintain the record of every cross-border transaction.  Thus, we offer a strong foreign exchange management act consultancy services to the clients to set up the establishments in India by companies outside India under the regulations of RBI & FEMA compliances for outbound and inbound transactions and investments.  We have a team of experienced professionals who provide effectual solutions concerning the industry legal norms and regulation for avoiding any risks related to the foreign exchange affairs. 

Exchange control in India came into existence in the year of 1939 imposed on both the payment & receipts of foreign transactions. The RBI plays an important role in foreign exchange affairs as RBI issues the Indian currency and our monetary policies. 

As RBI provides every information about the Indian currency in order to put up the value of other foreign currency or dollars corresponding to the Indian rupee. Any recipient associated with foreign exchange based on account of investment earnings, capital receipt and export earnings subject to a private account or any government body, RBI has the direct controls over it under exchange laws. 

RBI governs all external payments and trade related to foreign exchange. Here, RBI acts as a guardian in regulating the foreign exchange values and placing the limits to maintain the flow of the entire demand of international transactions and foreign exchanges.

FEMA – The Foreign Exchange Management Act 1999 was issued by the government by replacing the previous Foreign Exchange Regulation Act. RBI has the full authority over capital account transactions. The key functions of RBI in some instances of current account transaction under the FEMA laws :
  • Facilities to lending & borrowing  in foreign exchange
  • Import and Export facilities of currency notes
  • Immovable property acquisition &  transfer outside India
  • External Commercial borrowings
  • RBI approves only the matters related to FEMA
  • Foreign Direct Investments
  • Under the regulations of FEMA compounding of offence
  • Branch, Liaison, and Project offices establishment of foreign organisations in India

What they say about us

We give full credit to VJM for streamlining our company’s GST compliance. Their dedicated team of learned professionals have a focussed approach & exceptional clarity when it comes to any questions pertaining to GST. I can say, without their support, it would not have been possible for us to sail past the initial turbulent period when GST was launched. Our best wishes always with them !
Siddharth Gupta - CraftHome
Siddharth Gupta
CEO, Craft Home, Export House

Why Choose Us

Client Centric Approach

Client is the key driver of our service offerings. Our approach to service offerings is based on a client centric and customized approach. Our specialized teams are a mix of technical and industry experience in order to serve clientele for their specific needs.

Quick Turnaround

We always endeavour for a quick turnaround time to serve our clientele. We are supported by an experienced and client focussed support teams to offer timely services to our clientele. In case of any business exigencies and time sensitive service requirements, you can always count on us.

Team Work

We have built high performing teams supported by strong work ethic. Our team is a mix of experts, professionals and support staff from technical and varied academic, cultural, social and ethnic backgrounds. We believe that this diversification plays a vital role in motivating the team into High Performing Teams.

Open Communications

We believe that open communication is the core principle in order to demonstrate trust, build long lasting and valuable relationships with clientele. We are committed to ensuring transparency in communication, service offerings and delivery.

Driving quality in delivery

Our service offerings are driven by quality and reviews at every level. We strive to provide a qualitative and value-added delivery to our clientele. At all times, we endeavour to provide exceptional client service by meeting client expectations and driving client satisfaction.

Articles on FEMA

How to Claim Foreign Tax Credit in Income tax return

How to Claim Foreign Tax Credit in Income tax return

As per Section 90 and 90A of Income Tax Act, A non-resident Indian can avoid taxability liability in India on income generated in India by furnishing a Form 10F and Tax Residency Certificate from another country. But what about if a Resident Indian pays Income Tax in another country and is liable to pay income tax on that income in India as well? 

Read More »
Form 10F and PAN of Non-residents in India

Form 10F and PAN of Non-residents in India

Double Taxation avoidance agreement is entered between two countries to avoid dual taxability of the same income in 2 countries. Section 90 of Income Tax Act, 1961, permits the central government to enter into agreement with any other country to avoid double taxation and maintain mutual economic relations, trade and investments. In accordance with Double Taxation Avoidance Agreement (DTAA), Income is taxed in only one country and the assessee is not required to pay tax in another country.

Read More »
A Guide to DPX 2 Form

A Guide to DPX 2 Form

Export of goods and services forms an important part of the economy of every country, whether developing or developed, as exports bring foreign currency to the country. Since, a country is providing its resources to another country, therefore, government makes all the efforts that corresponding foreign currency flows into the country at the earliest. For this purpose, various regulations are provided under Foreign Exchange Management Act (FEMA). As per FEMA, foreign currency with respect to export of goods and services should be brought into the country within 9 months from date of export.

Read More »
Introduction to Software Export Declaration (SOFTEX) Form

Introduction to Software Export Declaration (SOFTEX) Form

Export of goods and services is the most regulated transaction as it takes domestic products into the international market and brings foreign currency in India. An exporter is required to furnish various forms and documents with different authorities to substantiate that goods have been actually exported and consideration for such export is received in convertible foreign exchange.

Read More »

V J M & Associates LLP

Contact Us