Overview of FEMA Compliance
A need emerges with the Corporate to watch out for outside trade exchanges, in the setting of sectoral tops, investment tops, to go around from the enormous penalties. FEMA compliance plays an essential role in the growth and success of various sectors in India. The purpose of introducing the Foreign Exchange Management Act, 1999 (FEMA) is to smooth external trade, maintaining a healthy foreign exchange market in India, promote the importance of balance payments.
India adheres to stringent compliance for cross border transactions. Often companies have to go through a cumbersome and irritant process while going through cross border transactions. An increase in inbound outbound flow of funds has also led to increase in the level of check on compliances in the milieu of foreign exchange. A need emerges with the Corporate to watch out for outside trade exchanges, in the setting of sectoral tops, investment tops, to go around from the enormous penalties. FEMA compliance plays an essential role in the growth and success of various sectors in India. The purpose of introducing the Foreign Exchange Management Act, 1999 (FEMA) is to smooth external trade, maintaining a healthy foreign exchange market in India, promote the importance of balance payments.
Why is Compliance under FEMA required
- The main aim of FEMA regulation is to ensure that businesses are compliant with relevant foreign exchange laws.
- FEMA will monitor business dealings abroad by companies established in India.
- Being compliant with FEMA will help your business run smoothly outside India.
- Foreign Companies can set up offices in India by complying with foreign exchange regulations.
Eligibility criteria for Compliance under FEMA
- Individuals.
- High Net Worth Individuals.
- Companies
- Partnerships/ proprietorship concerns.
- Non-Resident Indians (NRIs).
- Foreign Individuals.
- Foreign Institutional Investors.