Foreign Exchange Management Act (FEMA)

The scope of business is not limited to a state or to a country rather it has been expended throughout the world. Overseas expansion is wider opportunity for business world. Different countries have different set of act, rules and regulation regarding foreign transactions compliances. In today's world International trade is touching new heights as a result need of reliable legal consultant requirement come in to picture. The scope of our services in this area from advisory on transactions relating to Foreign Exchange, opinion on Different type transactions which may attracts applicability of foreign exchange management Act provisions to execution of post transaction compliances/returns with regulatory authorities.

India, business ventures and investments are taken care by FEMA. The rules and regulations with the RBI proposals and permissions are also taken care by FEMA. Foreign Exchange Management Act is an act that provides guidelines for the free flow of foreign exchange in India. FEMA is applicable in Whole India and even branches, offices and agencies located outside India, if it belongs to a person who is a resident of India. Brief about FEMA law Characteristic & objectives are as under:

• The main objective of the FEMA (1999) is to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments. It was also formulated in order to be compatible with the policies of pro- liberalization & to promote the orderly development and maintenance of foreign exchange market in India.
• FEMA prohibited foreign exchange dealing or transfer of foreign security to any person not being an authorized person;
• The main objective of the FEMA (1999) is to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments. It was also formulated in order to be compatible with the policies of pro- liberalization & to promote the orderly development and maintenance of foreign exchange market in India.
• FEMA prohibited foreign exchange dealing or transfer of foreign security to any person not being an authorized person;
• FEMA prohibited to Make any payment to or for the credit of any other person resident outside India in any manner;
• Foreign exchange management act also makes it clear that if any person residing in India received any Forex payment (without there being a corresponding inward remittance from abroad) the concerned person shall be deemed to have received this payment from a non-authorised person.
• Seven types of transactions which are altogether prohibited under current account. These include transaction relating to lotteries, football pools, banned magazines and a few others.
• After implementation of foreign exchange management act 1999, certain prescribed limits have been substantially increased.
• Foreign exchange management act 1999 rules and regulations have an abundant impact on international trade transactions attracting foreign exchange and different modes of payments. RBI release regular notifications and circulars, outlining its clarifications and modifications related to various sections of FEMA.
• FEMA and the related rules give full freedom to Resident of India (ROI) to hold, own or transfer any foreign security or immovable property situated outside India.
• Similar freedom is also given to a resident who acquire such security or immovable property from an ROI.
• An ROI is permitted to hold shares, securities and properties acquired by him while he was a Resident or inherited such properties from a Resident.

What Manoj Jagram & Associates Offers

Manoj Jagram & Associates provide consultancy in Foreign Exchange Management Act issues, RBI & Foreign Collaboration services for the aspirants which are tapping global opportunity. We have carved a niche as the reliable FEMA Consultant based in India. Our services are offered at market leading rates. We offer Foreign Exchange Management Act Consultancy that encompasses the entire gamut of foreign exchange law:

• Consultancy - On implications of various provisions of the Foreign Exchange Management Act, 1999 (FEMA).
• Planning - To plan the matters/transactions/projects/agreements involving FEMA
• Collaborations In/ Outside India - Requirements of FEMA and its compliance
• Investments Outside India (Overseas Investments) - Requirements of FEMA and its compliance
• Investments By Foreign Enterprises, Foreign Residents in India (FDI) - FEMA law procedures and their compliance related matters & consultancy
• Non Resident Indians (NRI)/Persons of Indian origin (PIO) – Privileges and obligations under FEMA related matters & consultancy
• Statutory Compliances – As per Requirements of FEMA and their compliance
• Taxation - Of foreign enterprises, opinion, consultancy and compliance
• International Transactions covered under FEMA - Implications of Transfer pricing law and Double Taxation Agreements(DTA)
• Opening of Liaison offices, Project office & Branch office in India- Law, procedure and compliance
• FIPB (Foreign Investment Promotion Board) - Foreign collaboration agreement with various types of government approvals including Professional services in the field of obtaining FIPB approval for FDI
• External commercial Borrowings( ECB) - Law Procedures and Compliance related matters & consultancy
• Investment in Real Estate Sector through FDI and investment by NRI/ PIO in Real Estate sector - Law procedure and compliance
• Residential status of Individuals - Law, procedure and compliance
• Reserve bank Of India - Professional services in the field of obtaining permission under various provisions of FEMA, Filing of Intimations, Statutory Forms & Returns
• Statutory Compliances – As per Requirements of FEMA and their compliance
• Taxation - Of foreign enterprises, opinion, consultancy and compliance
• International Transactions covered under FEMA - Implications of Transfer pricing law and Double Taxation Agreements(DTA)
• Opening of Liaisoning office, Project office & Branch office in India- Law, procedure and compliance