Foreign Exchange Management (FEMA)
FEMA compliance for inbound and outbound investment, borrowings, remittances and property, including compounding of contraventions.
- Estimate Cost
- ₹15,000 – ₹1,50,000
- Typical duration
- 10 days
Service overview
- FEMA compliance covers all foreign exchange transactions under the Foreign Exchange Management Act, 1999
- This includes inbound and outbound investment, external borrowings, LRS remittances, NRI transactions and export-import realisation, along with regularising past contraventions through compounding
Who needs it? / When is it needed?
- Companies with foreign investment, overseas subsidiaries or foreign loans.
- Exporters and importers.
- NRIs and resident individuals remitting abroad under LRS.
- When a FEMA contravention needs to be regularised.
What to expect from the WCP Professionals
- Advisory on FDI, ODI, ECB and LRS transactions.
- Preparation of RBI and AD bank filings.
- Annual returns (FLA, APR).
- Monitoring of export realisation.
- FEMA health check or audit.
- Compounding applications to the RBI for contraventions.
Key deliverables
- FEMA advisory note.
- Filed forms and returns.
- Compliance health check report.
- Compounding application and order, where needed.
Standard turnaround time
- Filings: 2–5 working days per form.
- ODI and ECB reporting: before or within the prescribed timelines.
- Compounding orders are generally passed within about 180 days of a complete application.
Government fees, timelines & key outcomes
- RBI filings carry no government fee, though late submission fees may apply.
- Compounding attracts an application fee plus a compounding amount based on the contravention.
- LRS limit: USD 250,000 per financial year.
- Key outcome: full FEMA compliance and freedom from penalties.
Forms & filings involved
- FC-GPR and FC-TRS.
- ODI forms and Annual Performance Report (APR).
- Form ECB and monthly ECB-2 return.
- FLA return.
- LRS declaration (Form A2).
- Compounding application.
Documents required
- Transaction documents and agreements.
- Bank remittance advices and FIRCs.
- Financial statements.
- Board resolutions.
- Details of past filings and any delays.
What we need from you
- Complete transaction history.
- Coordination with your AD bank.
- Timely approvals and payments.
Important conditions
- FEMA contraventions can attract penalties of up to three times the amount involved.
- Some contraventions cannot be compounded.
- AD banks may seek additional documents.
Additional information
- A periodic FEMA health check helps catch gaps before they become penalties.
- Related services: FDI Compliance, Global Entity Setup, Cross-Border Tax Compliance.
The estimated cost covers indicative professional fees only. Government fees, stamp duty and taxes are payable at actuals.
How it works
- 1. Raise a service enquiry describing your requirement.
- 2. A Relationship Manager reviews it and opens it for bidding.
- 3. Pay into escrow and assign the professional you select.
- 4. Track progress to completion, then accept and release payment.
Frequently asked questions
What is FEMA?
The Foreign Exchange Management Act, 1999, which governs cross-border investments, borrowings, remittances and foreign-exchange dealings.
What if a FEMA filing is missed?
A Late Submission Fee can regularise reporting delays; other contraventions can be compounded with the RBI on payment of a compounding amount.
What is the LRS limit?
Resident individuals can remit up to USD 250,000 per financial year under the Liberalised Remittance Scheme, subject to TCS where applicable.
Do NRIs need FEMA compliance?
Yes — for accounts, investments, property purchases and repatriation from India.