The foreign exchange regulations have been liberalised over the years to facilitate the inflow and outflow of funds to and from India. The changes have been introduced periodically in line with the government policy of economic liberalisation. Still, in few cases, specific approvals are required from the regulatory authorities for foreign exchange transactions/remittances.
These regulations in India are governed by the Foreign Exchange Management Act (‘FEMA’) and the Regulations thereunder. The apex body on these matters in India is the Reserve Bank of India (‘RBI’) which regulates the law and is responsible for all key approvals.
FEMA is an important legislation which impacts foreign nationals who are working in India and Indians who have gone outside India and/or want to invest outside India. It is important to be compliant with the foreign exchange regulations.
Key service offerings
- Advise on the type of bank accounts that can be opened by a foreign national in India
- Advise on whether a foreign national can invest in immovable properties, shares etc. in India
- Advise on the procedure for remittance of salary outside India and other incomes like rent, interest etc. earned in India.
- Advise on repatriation outside India of sales proceeds of shares, immovable properties, etc.
- Advise on foreign exchange regulations in respect of assets acquired outside India before visiting India
- Advise on setting up a liaison office and assistance in related periodic compliance for the liaison office
- Advise in relation to letters seeking approval/permission from the foreign exchange authorities.
- Advice in relation to investment in India by Indians who have settled abroad
- Advice in relation to investment outside India by Indian residents.
