Foreign Exchange Management – Inbound and Outbound Transactions

The Indian Government formulated Foreign Exchange Management Act, 1999 (FEMA) to replace FERA (Foreign Exchange Regulation Act) in order to encourage external payments and across the border trades in India. FEMA was enacted to fill the loopholes and drawback of FERA and accordingly, several economic reforms were introduced under the FEMA act.

FEMA is applicable to the whole of India and equally applicable to the agencies and offices located outside India (which are owned or managed by an Indian Citizen) and is applicable to foreign exchange, foreign securities, export or import of any commodity and/or service, banking, financial and insurance services, any foreign investment in an Indian Company, etc.

We are providing services our cross border and Indian clients in various areas, including but not limited to:

• Inbound and outbound investment transactions
• Devising an investment strategy including formation of new structure such a subsidiary or a joint venture entity
• Assisting in compliance and reporting requirements in accordance with FEMA and RBI guidelines
• Advising on repatriation of funds and profits from India.
• Assisting and advising on the transfer of business or assets including intellectual property and documentation

Our firm possesses extensive experience in providing transactional advice and practical solutions to the legal issues and various compliances. We collaborate with our associates to understand the benefits and identify the challenges whilst studying such transactions and when considering these types of transactions with an aim to attain proper planning and provide an overall solution keeping legal, tax, financing and regulatory aspects in mind.