Foreign Exchange · Panaji, Goa

FEMA Compliance

Navigate India's foreign exchange laws without risk. Our FEMA advisory in Goa covers LRS remittances, NRI property, ODI/FDI structuring, RBI filings, and repatriation — ensuring every cross-border transaction is permissible, documented, and defensible.

Overview

Foreign exchange, managed correctly.

The Foreign Exchange Management Act, 1999 governs how money flows in and out of India. Get it wrong and the Enforcement Directorate can levy penalties up to three times the amount involved — even on transactions that seem routine, like transferring money to an overseas account or selling inherited property as an NRI.

We advise on the full FEMA spectrum: permissible transaction routes, Liberalised Remittance Scheme (LRS) compliance, NRE/NRO account structuring, Overseas Direct Investment (ODI) filings, and repatriation of sale proceeds. Our work complements our 15CA-15CB remittance filing and NRI investment advisory.

What we cover

Our FEMA compliance services.

From single remittances to complex cross-border investment structures — FEMA advisory for residents and NRIs.

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Liberalised Remittance Scheme (LRS)

Confirming permissibility, preparing Form A2, and tracking your USD 250,000 annual limit for overseas remittances.

NRI Property Transactions

Advising on permissible purchases, sales, repatriation of proceeds, and TDS compliance for property held by NRIs and PIOs.

NRE / NRO / FCNR Account Structuring

Choosing the right account type, managing repatriability, and advising on inter-account transfers and remittances abroad.

Overseas Direct Investment (ODI)

Structuring and filing Form ODI for Indian residents investing in foreign entities, including joint ventures and wholly owned subsidiaries.

Foreign Direct Investment (FDI)

Advising on sectoral caps, automatic vs approval route, and FC-GPR / FC-TRS filings for foreign investment into Indian companies.

FEMA Violation & Regularisation

Assisting with compounding applications to the RBI for inadvertent past violations and advice on preventing recurrence.

Our process

Your FEMA transaction, step by step.

01

Transaction Review

We classify your transaction as current or capital account and identify the applicable FEMA regulation.

02

Route Determination

We confirm whether automatic route applies or RBI prior approval is needed, and map the required forms.

03

Filing & Documentation

We prepare and submit all RBI filings, tax certifications and bank instructions.

04

Post-Transaction Compliance

Annual reporting, account maintenance filings, and ongoing monitoring of your FEMA obligations.

Frequently asked questions

FEMA compliance in India, answered.

What is FEMA and who does it apply to?

The Foreign Exchange Management Act, 1999 (FEMA) regulates cross-border transactions in India. It applies to all persons resident in India making foreign exchange transactions, as well as to NRIs and foreign entities transacting in India. FEMA covers capital account transactions (investments, loans, property), current account transactions (trade, services, remittances), and all receipts and payments in foreign currency.

What is the Liberalised Remittance Scheme (LRS)?

The LRS allows resident individuals to remit up to USD 250,000 per financial year for permissible current or capital account transactions without RBI prior approval. This covers overseas education, medical treatment, travel, maintenance of close relatives abroad, and portfolio investments. Remittances must be routed through an authorised dealer bank and reported in Form A2.

Can an NRI purchase property in India under FEMA?

Yes. NRIs and PIOs can purchase residential and commercial property in India without RBI approval. However, they cannot buy agricultural land, plantation property, or farmhouses without prior RBI permission. Funds must be remitted through normal banking channels or paid from NRE/NRO/FCNR accounts, and repatriation of sale proceeds is subject to prescribed limits and conditions.

What is Overseas Direct Investment (ODI) and when is RBI approval needed?

ODI refers to investment by an Indian entity or resident individual in a foreign entity through equity, loan, or guarantee. Under the automatic route, Indian companies can invest up to 400% of their net worth without RBI approval. Investments beyond this limit, or in certain restricted sectors, require prior RBI approval and Form ODI filing through an authorised dealer.

What are the penalties for FEMA violations?

FEMA violations can attract penalties up to three times the sum involved, or up to ₹2 lakh where the sum cannot be quantified, with continuing penalties of ₹5,000 per day for ongoing violations. Unlike FERA, violations are civil offences. However, repeated or serious violations can lead to adjudication proceedings before the Enforcement Directorate.

What FEMA filings does an NRI need when selling property in India?

When an NRI sells property in India, the buyer must deduct TDS under Section 195. Repatriation of net sale proceeds from the NRO account is permitted up to USD 1 million per financial year, subject to a CA certificate confirming taxes have been paid. A Form 15CA/15CB is required for the remittance abroad.

How do NRE and NRO accounts differ under FEMA?

An NRE account holds foreign currency converted to INR; principal and interest are fully repatriable and tax-free in India. An NRO account holds Indian-source income such as rent, dividends, or pension; interest is taxable and repatriation of principal is subject to the USD 1 million annual limit and applicable tax certifications.

How do I get FEMA compliance advice in Goa?

Book a free consultation and describe your transaction. We will map the applicable FEMA provisions, identify the required RBI filings, and ensure your transaction is structured and documented for full compliance.

Cross-border transaction? Stay FEMA-compliant.

Book a free consultation with our FEMA experts in Goa. We will map the right route, prepare all filings, and keep your foreign exchange transactions fully compliant — no obligation.