Having problem dealing with Foreign Exchange Matters? Reach out to our FEMA Consultant

FEMA stands for Foreign Exchange Management Act. It’s the primary operative act that watches over the matters of foreign exchange. From setting up companies in Foreign countries to watching over foreign currencies, it’s the FEMA guidelines what dictate all. Such matters can get cumbersome, and become more complex with time. Get in touch with our FEMA Consultants

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FEMA is a set of regulations that allows the Reserve Bank of India to pass different regulations and enable the government of India to pass rules related to foreign exchange related to the foreign trade policy of India. 

The head of FEMA is known as Enforcement Directorate, and its head is the Director of New Delhi as the headquarters are located in Delhi. FEMA is applicable all over India and similarly applicable to other branches and agencies outside India

What is FEMA Act?

The Foreign Exchange Management Act was passed in 1999 which replaced the FERA Act in 2000 because it was not complying with the post-liberalization policies of the Government.

Foreign Exchange Regulation Act was passed in 1973 to regulate the financial transactions related to foreign exchange and securities. It was launched when the foreign reserves of the company were very low. As compared to FERA, the FEMA Act made all criminal offenses civil offenses.

  • Giving power to the central government to impose restrictions on the matters of foreign exchange and foreign payments made to a person Inside the country. For instance, the FEMA act Forex trading watches over the foreign exchange trading to ensure that no fraudulent activity can take place.
  • Imposing restrictions on free transactions.
  • Imposing restrictions on foreign payments from outside the country – allowing it only to be conducted by authorized individuals.
  • Watching over the person authorized with foreign exchange matters ensures no harm to India's economic well-being.
  • Empowering the Reserve Bank of India with the ability to impose restrictions on selling and drawing foreign exchange.
  • Permitting Indian residents to own immovable property or properties in foreign countries, bringing foreign currencies into the country, inheriting any property outside the country, and much more.
  • Establishing FEMA guidelines for import and export is one of the primary concerns of the Foreign Exchange Management Act 1999:
    1. Establishing and enforcing FEMA guidelines related to importing rules
    2. Establishing and enforcing FEMA guidelines for export realization.
    3. Establishing and enforcing FEMA guidelines for outward remittance.
    4. Establishing and enforcing FEMA guidelines for inward remittance.

Services of FEMA

A list of services offers by FEMA

Our FEMA consultants have carved their own unique space in the field of FEMA Consultancy, and as such, we provide our vast and focused outlook in the following FEMA advisory services that we provide:

  • Consultations for transactions related to foreign exchange.
  • Assistance in the routine matters involving interpretation of FEMA rules.
  • Advisory services for inbound investment.
  • Advisory services for outbound investments.
  • Litigation assistance and representation before authorities
  • Assistance with setting up liaison, branch, and project offices in and outside India.
  • Professional business licensing services like CDSCO License, IE Code, etc.
  • Annual return filing services.
  • Business valuation assistance and certification
  • Assistance with filing specific forms like FCGPR, FCTRS, etc.


Regulation and Management Of Foreign Exchanges

While dealing in foreign exchange, the RBI issued some regulations which the concerned person or a firm must adhere to to ensure their businesses' smooth functioning. Some of them are listed below, so read carefully.

  • No person can deal in or transfer any foreign exchange or foreign security to any person, not being an authorized person.
  • No person can make any payment to or for the credit of any resident outside India.
  • No person can receive otherwise through an authorized person, any payment by order or on behalf of any resident outside India.
  • For this clause, where any person in, or resident in, India received any payment by order or on behalf of any person resident outside India through any other person (including an authorized person) without a corresponding inward remittance from any place outside India, then, such person shall be deemed to have received such payment otherwise than through an authorized person;
  • No person can enter into any financial transaction in India in association with the acquisition, creation, or transfer of a right to acquire any asset outside India.

Explanation.—For this clause, "financial transaction" means making any payment to, or for the credit of any person, or receiving any payment for, by order or on behalf of any person, or drawing, issuing, or negotiating any bill of exchange or promissory note, or transferring any security or acknowledging any debt.

Holding of Foreign Exchange

No person resident in India must acquire, hold, own, possess, or transfer any foreign exchange, foreign security, or immovable property outside India.

Current Account Transactions

Any person can sell or draw foreign exchange to or from an authorized person if such sale or drawal is a current account transaction. But the Central Government can, in the public interest and consultation with the Reserve Bank, impose reasonable restrictions for current account transactions as prescribed.

Capital Account Transactions

  • Any person can sell or draw foreign exchange to or from an authorized person for a capital account transaction.
  • The Reserve Bank can, in consultation with the Central Government, specify the following:
    1. Any class or classes of capital account transactions that are permissible.
    2. The limit up to which foreign exchange can be admissible for such transactions.
    3. Any conditions which can be placed on such transactions.

Note: The Reserve Bank must not impose any restriction on the withdrawal of foreign exchange for payments due on amortization of loans or non-depreciation of direct investments in the course of business.

  • The Reserve Bank can, by regulations, restrict or regulate the following:

Transfer or issue of any foreign security by the following:

    1. A person resident in India
    2. A person resident outside India
    3. Any branch, office, or agency in India of a resident outside India

Any borrowing or lending in foreign exchange in any form or by any name called.

Any borrowing or lending in rupees in any form or by any name called between a person resident in India and a person resident outside India.

  • Deposits between person resident in India
  • Deposits between person resident outside India.
  • Export, import, or holding of currency or currency notes.
  • Transfer of immovable property outside India, other than a lease not exceeding five years.
  • Acquisition or transfer of immovable property in India, other than a lease not exceeding five years.
  • Giving of a guarantee or surety in respect of any debt, obligation, or other liability incurred by the following:
    1. A person resident in India and owed to a person resident outside India
    2. A person resident outside India
    3. A person resident in India can hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside India if such currency, security or property was acquired, held, or owned by such person when he was resident outside India or inherited from a person who was resident outside India.
    4. A person resident outside India can hold, own, transfer or invest in Indian currency, security or any immovable property situated in India if such currency, security or property was acquired, held or owned by such person when he was resident in India or inherited from a person who was resident in India.
    5. The Reserve Bank can, by regulation, prohibit, restrict, or regulate the establishment in India of a branch, office or other places of business by a person resident outside India for carrying on any activity relating to such branch, office or other places of business.

Export of Goods and Services

  • Every exporter must furnish a declaration containing true and correct material particulars to the Reserve Bank. The declaration must include the amount of the full export value. Suppose the full export value of the goods is not ascertainable at the time of export. In that case, the value that the exporter, regarding the prevailing market conditions, expects to receive on the sale of the goods in a market outside India.
  • Every exporter must furnish to the Reserve Bank such information as required to ensure the realization of the export proceeds by an exporter.
  • The Reserve Bank can ensure that the full export value of the goods or such reduced value of the goods as the Reserve Bank determines, having regard to the prevailing market conditions, is received without any delay, direct any exporter to comply with such requirements as it deems fit.
  • Every exporter of services must furnish to the Reserve Bank or other authorities a declaration containing the true and correct material particulars concerning payment for such services.

Realization and repatriation of foreign exchange

Suppose any amount of foreign exchange is due or has accrued to any person resident in India. In that case, such a person must take all reasonable steps to realize and repatriate such foreign exchange to India within the specified period specified by the Reserve Bank.

Exemption from realization and repatriation in certain cases

  • The provisions of the realization and repatriation must not apply to the following:
  • Possession of foreign currency or foreign coins by any person up to a limit as the Reserve Bank has specified.
  • Foreign currency account held or operated by such person or class of persons and the limit upto which the Reserve Bank may specify.
  • The foreign exchange acquired or received before the 8th day of July 1947 or any income arising or accruing thereon which is held outside India by any person in pursuance of a general or special permission granted by the Reserve Bank.
  • Foreign exchange held by a person resident in India up to such limit as the Reserve Bank may specify, if such foreign exchange was acquired by way of gift or inheritance from a person referred to in clause (c), including any income arising from there.
  • The foreign exchange acquired from employment, business, trade, vocation, services, honorarium, gifts, inheritance, or any other legitimate means up to such limit as the Reserve Bank may.


Documents Required for FEMA  Consultation in India

Documents required for FEMA Consultation in India

To provide the most robust FEMA legal advisory services, we will need from you:

  • Your ID proofs
  • Proof of your business
  • Your address proofs
  • And other documents pertaining to the services you require.

Process of acquiring our FEMA consultation services in India

Process of acquiring our FEMA consultation services in India

The process of getting our FEMA legal advisory services is as follows:

  • Reach out to us with your requirements
  • Let us analyze your requirements
  • Give us the time within which you want the work to be delivered
  • Get a complete report.

FEMA Consultation with Experts

Our Foreign Exchange Management Act experts will assist you in the following steps:

  • You reach out to us, and we jot down your requirements.
  • Then, we give you initial consultation.
  • If you like what we have to offer, we proceed.
  • Then, as per the services needed, we ask for the requisite documents and draft some independently.
  • We deliver the FEMA legal advisory service you're looking for.
  • We then finalize the process and leave you satisfied with our services.

Thus, if you're in the market for experienced, professional, and ethical FEMA consultants, you know Registrationwala will always help your back. Reach out to us with your requirements, and let our experts handle the rest. You can always connect with us for FEMA consultants in Delhi or FEMA consultants in Mumbai.

What makes our FEMA consultation unique

Registrationwala is one of India's leading FEMA consultancy specializing in-depth knowledge of Foreign Exchange Management Laws. We understand that the FEMA rules and Regulations can be quite confusing. And at times, the volatile nature of the rules can create more issues because of rapid changes.

What makes registrationwala the best FEMA Consultant in India

To keep up with those changes, and to help your as per FEMA Act, our active FEMA Consultants in Delhi and Mumbai come together to provide help with a plethora of matters, including:

  • Consultation to foreign or NRIs on matters of investment in Indian business.
  • Helping you interpret the complex FEMA rules
  • Assistance and consultations about inbound and outbound investment.
  • Assistance in legal matters that include your litigation and representation in matters regarding foreign exchange management rules.
  • Conducting all the necessary legwork required to set up global business entities like joint ventures and whatnot.

So, what makes us the partner of choice when it comes to FEMA consultancy:

Experience: We possess a vast industry experience in the field that's the FEMA. Our experts have absorbed the entirety of the Act's literature. With that, we provide only the best solutions to our clients.

Professionalism: The cumbersome and complex Act that's FEMA requires the FEMA consultants to be patient, analytical, and, most importantly, professional. We never leave you midway in our services. In fact, we make sure that you only get the best results.

Ethical services: When matters concern foreign monetary exchange, it's easy to attract towards cutting corners and do the bare minimum. As ethical FEMA consultants, we never only provide your bare minimum, but rather, we go beyond.


Frequently Asked Questions – FAQs FEMA Consultant


Q1. What does FEMA stand for?

A. The FEMA's full form is Foreign Exchange Management Act.

Q2. When did FEMA Act came into being?

A. Foreign Exchange Management Act or FEMA Act came into being in 1999.

Q3. What is the goal of the FEMA Act?

A. The goal of the FEMA Act 1999 is to promote external payments and trades across borders. 

Q.4 What is the relation between FERA and FEMA?

The difference between FEMA and FERA are as follows:



Launched in 1973 by the Parliament of India.

Launched in 1999 to replace FEMA.

FERA has 81 sections.

FEMA has 49 sections.

FERA rules regulated foreign payments.

It focused on the foreign exchange reserves of India. Includes foreign payments and trade.

The objective is the conservation of Foreign Exchange.

The objective is the Management of Foreign Exchange.


Q.5 What is the penalty for violation of the FEMA Act?

If any person violates the rules and provisions, notification, or any order of FEMA, the individual is liable to pay a penalty up to thrice of the sum involved in the contravention or a maximum of Rs. 2 lakhs. If the violation is on a continuous basis, then the person is liable to pay Rs. 5,000 for each day.

Q.6 What is the FEMA Scheme?

To encourage external payments and foreign trade the Central Government of India has introduced the Foreign Exchange Management Act (FEMA). It was launched to fill the loopholes and drawbacks of FERA. FEMA was basically introduced to de-regularise and maintain a liberal economy in India.


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