FEMA Consultants India — Expert Advisory | Savlana Init

FEMA Advisory · Foreign Exchange Compliance

FEMA Consultants India — Structured. Reported. Regularised.

End-to-end FEMA advisory and compliance — FDI, ODI, ECB, FEMA compounding, export-import, and cross-border transaction structuring for businesses and individuals across India.

The Foreign Exchange Management Act, 1999 and the extensive body of RBI regulations, master directions, and circulars under it govern every cross-border financial transaction involving India — whether you are a startup receiving foreign investment, a corporation with overseas subsidiaries, an NRI with Indian assets, or an exporter dealing with foreign receivables. FEMA compliance is not a one-time exercise; it is an ongoing obligation that evolves as regulations change and your business expands internationally.

FEMA violations are not merely technical — they attract significant penalties (up to three times the amount involved), compounding proceedings, and can complicate future transactions, banking relationships, and regulatory approvals. Yet the framework is complex enough that well-intentioned businesses routinely find themselves in violation simply because they did not know a filing was required or a prior approval was needed.

As experienced FEMA consultants, we provide advisory and compliance services across the full spectrum of FEMA: structuring inbound FDI and outbound ODI, advising on External Commercial Borrowings (ECB), managing all RBI reporting obligations, responding to ED and RBI notices, and representing clients in compounding proceedings. We combine transactional advisory with a thorough understanding of the regulatory landscape to keep your cross-border activities compliant.

Our FEMA Consultants India Services

FEMA Compliance Audit

A comprehensive review of all your cross-border transactions, investments, and filings to identify compliance gaps, unreported obligations, and potential violations.

Inbound FDI Advisory

Structuring of FDI transactions — sector eligibility, automatic vs approval route, instrument type, pricing compliance, and complete RBI reporting (FC-GPR, FC-TRS, FIRMS).

Outbound ODI Advisory

Guidance on Overseas Direct Investment by Indian entities — ODI limits, prohibited sectors, Form ODI filing, and annual performance reporting to RBI.

ECB Compliance

Advisory on External Commercial Borrowings — eligible borrowers and lenders, end-use restrictions, all-in-cost limits, Form ECB filing, and ongoing reporting.

FEMA Compounding

Preparation and filing of compounding applications with the RBI's Compounding Authority for all categories of FEMA violations.

Export-Import Advisory

FEMA compliance for export realisation, import payments, advance remittances, trade credits, and write-off of export receivables.

ED and RBI Notice Response

Drafting of replies to notices and summons from the Enforcement Directorate and RBI on FEMA violations or non-reporting.

Cross-Border Transaction Structuring

FEMA-compliant structuring of M&A transactions, joint ventures, international acquisitions, and reorganisations involving Indian and foreign entities.

Our Process

Initial Consultation

We understand your business, cross-border activities, existing investments, and compliance history to scope the advisory or representation required.

Regulatory Mapping

Applicable FEMA provisions, RBI master directions, circulars, and sector-specific rules are mapped to your specific transactions and obligations.

Gap Analysis

Existing filings and transactions are reviewed against regulatory requirements to identify unreported obligations, violations, and areas of risk.

Advisory and Documentation

A detailed written advisory is delivered, supported by all required forms, declarations, and filings prepared by our team.

Ongoing Monitoring

We monitor regulatory updates and proactively flag changes that affect your cross-border activities, ensuring your FEMA compliance remains current.

Why It Matters

✓Comprehensive FEMA audit to identify and plug compliance gaps

✓FDI structuring from sector analysis to FIRMS portal filing

✓ODI transactions advised, filed, and annually reported to RBI

✓ECB documentation and ongoing RBI reporting managed

✓Compounding applications prepared and filed for all FEMA violations

✓Export-import FEMA compliance — realisation, write-offs, and advance remittances

✓ED and RBI notices responded to with strong written submissions

✓Cross-border M&A and joint ventures structured for FEMA compliance

Frequently Asked Questions

FEMA governs all cross-border financial transactions involving India: foreign investment in Indian companies (FDI), investments abroad by Indian entities (ODI), external commercial borrowings (ECB), cross-border trade, NRI bank accounts and remittances, and any transaction involving foreign exchange.

At the earliest — before a cross-border transaction is structured, not after. Many FEMA violations occur because the regulatory requirements were not considered at the planning stage. Retroactive compliance (compounding) is possible but costly.

Compounding is the process of regularising a FEMA violation by making a voluntary application to the RBI's Compounding Authority, disclosing the violation, and paying a compounding fee. Most FEMA violations are eligible for compounding. The penalty is generally lower for early, voluntary disclosure.

FERA (Foreign Exchange Regulation Act) was the predecessor to FEMA. FERA was a criminal statute with imprisonment as a penalty. FEMA replaced it in 1999 with a civil framework — violations attract financial penalties, not criminal prosecution (except in specified cases under the PMLA).

Yes, from the very first rupee. Startups receiving foreign investment must comply with FDI sectoral conditions, pricing guidelines, RBI reporting (FC-GPR within 30 days), and FIRMS portal filings. They also have ongoing FLA Return and SBO disclosure obligations.

Under FEMA, the penalty for a violation is up to three times the amount involved in the contravention, or INR 2 lakh where the amount is not quantifiable, plus a continuing penalty of INR 5,000 per day for continuing violations. Compounding fees are generally lower than adjudicated penalties.

Need expert FEMA advisory for your business or investments?

We advise on every aspect of FEMA — from structuring your first FDI to resolving long-standing violations — with clarity, precision, and regulatory authority.