RBI / FEMA Compliance for Startups

How It Works

1. 1

   FEMA position assessment

   Review the company's entire history of foreign exchange transactions, including inbound foreign investments, outbound remittances, cross-border service receipts, and overseas investments, to map the current FEMA position and identify any contraventions or reporting gaps.

2. 2

   Regularisation strategy

   For identified contraventions such as delayed FC-GPR filings or unreported foreign investments, advise on the appropriate regularisation route — compounding with the RBI, post-facto approval from the relevant authority, or restructuring of the transaction where permissible.

3. 3

   Compounding application (if required)

   Prepare and file a voluntary compounding application with the RBI Compounding Cell, covering all identified contraventions, with complete documentation, computation of the contravention amount, and a narrative explanation of the circumstances.

4. 4

   Pending filings completion

   File all pending FC-GPR and FC-TRS forms with the RBI through the authorised dealer bank, obtain updated KYC and valuation documentation, and ensure that all existing foreign investments are properly documented in the company's records.

5. 5

   Ongoing compliance framework setup

   Establish a compliance calendar for future RBI reporting obligations including FC-GPR for new allotments, FC-TRS for secondary transfers, Annual Performance Reports for overseas entities, and SOFTEX filings for software exports where applicable.

6. 6

   Advisory on new transactions

   Provide FEMA structuring advice for new foreign investment tranches, overseas subsidiary formation, cross-border licensing or royalty arrangements, and any other proposed transactions involving foreign exchange, ensuring compliance before execution.