Get Every Cross-Border Transaction Right — Under FEMA

The moment your business or money crosses India's borders — foreign investment, an overseas subsidiary, external borrowing, or an NRI transaction — you come under the Foreign Exchange Management Act (FEMA). Its reporting deadlines are strict, and a delay or a missed filing can turn into a costly contravention with penalties and RBI or ED scrutiny.

At Kavach, an initiative of Advonet Network, we provide complete FEMA compliance services — accurate reporting, timely filings, and expert advisory on every foreign-exchange transaction. Our experienced FEMA consultants, working alongside top CA firms and former officials, make sure your cross-border dealings are always fully compliant.

What is FEMA Compliance?

FEMA compliance (Foreign Exchange Management Act) means meeting all obligations under the Foreign Exchange Management Act, 1999 — the law that governs every foreign-exchange and cross-border transaction in India. It is administered by the Reserve Bank of India (RBI), with enforcement by the Enforcement Directorate (ED).

Whenever a business receives foreign investment, invests abroad, raises money from overseas lenders, or an NRI buys property or shares in India, specific filings and reporting must be done within defined timelines — through the RBI's FIRMS portal and Single Master Form. FEMA compliance is not a one-time event; it includes annual returns and event-based reporting that continue for as long as the foreign interest exists.

Get it right and your global growth is smooth and lawful. Get it wrong, and even an honest delay becomes a "contravention" that has to be compounded — with penalties attached.

Why FEMA Compliance Matters?

FEMA is one of the least understood — and most strictly enforced — areas of Indian regulation. Here's what's at stake:

• Heavy penalties — Contraventions can attract penalties of up to three times the amount involved, or a fixed sum where the amount isn't quantifiable, plus a daily penalty for continuing default.

• Compounding costs — A missed or late filing usually has to be regularised through compounding before the RBI — a formal, chargeable process that could have been avoided entirely.

• ED scrutiny — Serious or willful contraventions can invite Enforcement Directorate action, which is far more serious than a routine query.

• Blocked transactions & funding — Non-compliance can hold up your foreign investment, remittances, or an overseas deal at exactly the wrong moment.

• Reputational risk — For businesses courting foreign investors, a clean FEMA record is part of due diligence — and a poor one raises red flags.

Most FEMA problems come from simply not knowing a filing was due. Kavach makes sure you never miss one.

Our FEMA Compliance Services

Kavach offers end-to-end FEMA advisory and reporting for companies, startups, NRIs, and individuals. Our core services include:

FDI Reporting (FC-GPR & FC-TRS)

Reporting of foreign direct investment — filing FC-GPR on the issue of shares to non-residents and FC-TRS on the transfer of shares between residents and non-residents, within RBI timelines.

Overseas Direct Investment (ODI)

Advisory and reporting for Indian entities investing abroad — including structuring, filing, and the Annual Performance Report (APR) for foreign subsidiaries and joint ventures.

External Commercial Borrowings (ECB)

End-to-end ECB compliance — eligibility, Loan Registration Number (LRN), and ongoing ECB-2 return filing for money raised from overseas lenders.

Annual Return on Foreign Liabilities & Assets (FLA)

Preparation and filing of the mandatory FLA return for every company or LLP that has received FDI or made overseas investment.

Branch, Liaison & Project Office Setup

Complete FEMA compliance for foreign companies establishing a branch, liaison, or project office in India — approvals, reporting, and annual filings.

NRI Investments & Repatriation

Guidance for NRIs on investments, bank accounts (NRE/NRO), property transactions, and the repatriation of funds — fully within FEMA rules.

Liberalised Remittance Scheme (LRS)

Advisory on outward remittances by resident individuals under the LRS, keeping every transaction within permissible limits and purposes.

Compounding of Contraventions

Where a contravention has occurred, we handle the entire compounding process before the RBI — drafting, representation, and resolution — to regularise your position with minimal penalty.