The inflow and outflow of funds from India are regulated by the Foreign Exchange Management Act (“FEMA”) and the Regulations thereunder. It regulates all aspects of foreign exchange and has a direct impact on external trade and payments. FEMA is an important legislation which impacts foreign nationals who are working in India and also NRIs. Tax Connect provides the following services in FEMA:
- Advisory Services on exchange control requirements for foreign nationals coming to India or leaving India
- Advisory services on exchange control regulations in respect of various investment opportunities in India for individuals
- Assist in setting up an associate office
- Assistance in setting up of a Business in India – There are various modes that are available for setting up business in India which includes Incorporation of Wholly-Owned Subsidiary Company, Joint Venture Company, Project Office / Liaison office / Branch office of a Foreign Company in India.
- Assistance in Compliance Management – To provide services to investors for facilitating investment in India which includes advice provided on the investment strategy, consultation for doing business in India, obtaining permissions to set up office that includes assistance provided for Joint Ventures and handling the other routine compliances (reporting, taking government approvals, filing with the authority and all related aspect of support).
- Refund of Share Application Money – To make investment in a Company the first step is providing of Share Application to Investee Company, which shall be allotted within a stipulated time period, if the same is not within the stipulated time, the whole amount shall require to be refunded to the Investor.The Procedure includes filling of necessary documents and Liaisoning with AD Bank.
- Advisory on foreign Policies and procedures in India and Transfer of shares – The Stakeholders are required to comply with the RBI compliances for Transfer of shares between residents and non-residents and vice-versa. Our services include assitance in filing of Form FCTRS with the AD bank, within the stipulated time period. The Onus of the submission of the Form FCTRS within the given period would be on the transferor/transferee, resident of IndiaThe Transfer of shares are subject to the KYC check by the remittance receiving AD bank at the time of receipt of funds.The AD bank should scrutinize the transactions and on being satisfied about the transactions should certify the form FC-TRS as being in order.
- Assistance in filling of Annual Return with RBI – The annual return on Foreign Liabilities and Assets (FLA) is required to be submitted directly by all the Indian companies which have received FDI (Foreign Direct Investment) and/or made FDI abroad (i.e. Overseas Investment) in the previous year(s) including the current year i.e. who holds foreign Assets or Liabilities in their Balance Sheets.