The regulatory framework governing cross-border movement of money, assets, and ownership in India — principally FEMA and the directions issued by RBI — is detailed, frequently updated, and unforgiving of technical lapses even when the underlying transaction is entirely legitimate.
FEMA and RBI compliance spans a wide range of situations that businesses and individuals encounter regularly: residents making overseas direct investments, foreign entities investing into India, individuals remitting funds under the Liberalised Remittance Scheme, companies raising external commercial borrowings, and cases where historical transactions require compounding because an obligation was not met on time.
The 2022 revisions to the overseas direct investment framework brought welcome flexibility but also introduced new structures, new thresholds, and new compliance obligations that are not yet universally understood. Many businesses and individuals continue to operate under positions established under the old framework that warrant review.
Our approach to FEMA and RBI work is integrated with our international tax advisory — because in most cross-border contexts the two are inseparable. A transaction that is tax-efficient but regulatory non-compliant is not a good outcome. We address both dimensions from the outset.
Every matter has its own context. Reach out and we will be glad to understand yours.