FEMA Compliance - FC-GPR, FC-TRS, FLA Filings
Dedicated FEMA compliance service – inbound / outbound foreign exchange filings, ECB compliance, LRS, and compounding applications. Run as a standalone retainer or bolted onto an existing compliance engagement.
By CA Vijay R Singh, FCA
ICAI Membership No. 153926 | FRN 136869W | Practising since 2013
Quick Summary
FEMA compliance is the area where missed deadlines compound silently into material exposure – late FC-GPR filings, unfiled APRs, ECB drawdowns without reporting, LRS remittance without Schedule FA. Most general compliance practices fold FEMA into their broader retainer without specialist attention, and the gaps surface during due diligence or RBI scrutiny. This service is FEMA work isolated – the inbound and outbound filings, the ongoing reporting, and the compounding applications when defaults need regularisation.
Strategic Fit: Is this right for you?
Foreign Shareholding
Indian Pvt Ltds and LLPs with foreign shareholding (any %, any country).
Outbound Subsidiaries
Indian companies with outbound subsidiaries or JVs.
ECB Borrowers
Indian companies raising External Commercial Borrowings from foreign lenders.
LRS Individuals
Resident individuals holding foreign assets or making LRS remittances.
NRI Shareholders
NRIs holding Indian shareholdings needing FEMA discipline.
Compounding Cases
Companies with past FEMA defaults needing voluntary regularisation.
Final Deliverables Checklist
Everything you receive at the end of the engagement.
- FEMA audit memo - inventory of touchpoints, gap quantification
- Filing calendar - FC-GPR, FLA, APR, ECB personalised
- Event-based filings drafted, AD Bank coordinated, archived
- Valuation coordination - Sec 247 valuations for pricing compliance
- Annual FEMA compliance pack
- Coordination with statutory auditor on FEMA disclosures
- Compounding applications for past defaults
UNDERSTANDING THE FOUR FAMILIES OF FILINGS
Inbound – FC-GPR + FC-TRS
FC-GPR within 30 days of NR share allotment. FC-TRS within 60 days of NR share transfer. Pricing per FEMA Rule 21. AD Bank submitted to RBI FIRMS portal.
Outbound – Form ODI + APR
Form ODI Part I at remittance. APR (Form ODI Part III) by 31 December annually. Form ODI Part II for subsequent events. UIN allotted by RBI.
Annual – FLA + ECB
FLA by 15 July annually (any year FDI / ODI received). ECB Form at drawdown + monthly ECB-2 returns. Compounding under Sec 13 for past defaults.
The Engagement Lifecycle
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Transparent Pricing Structure
Statutory & Third-Party Costs – pass-through, NOT our fees
These are paid directly to government departments, certifying authorities, and banks. They are not VRS professional fees.
- FC-GPR / FC-TRS filing fees: nil (only AD Bank service charges)
- FLA filing fee: nil (online portal)
- ODI Form filing fees: nil
- ECB Form filing fee: nil
- RBI compounding fee: graded by contravention amount and duration
Engagement & Fees
Fees are confirmed per engagement after the scoping call, based on the scope and complexity involved. You receive a clear, written quote before any work begins — no hidden charges.
Quoted per Engagement
The final quote depends on the scope, volume, and statutory complexity of your specific engagement.
Frequently Asked Questions
We received foreign investment 3 years ago and never filed FC-GPR. What now?
Compounding application under Sec 13 FEMA. LSF applies for delays up to defined window; beyond that, full compounding required. We draft with factual narrative and substantive compliance defence.
Is FLA filing required even if there is no transaction in the year?
Yes. FLA is an annual position return – captures outstanding balance of foreign liabilities and assets at 31 March, regardless of activity.
We are raising ECB from our parent company. Anything special?
Parent-to-subsidiary ECB is permitted but subject to: recognised lender status, all-in-cost ceiling, minimum average maturity, permitted end-use. ECB Form + monthly ECB-2 returns mandatory.
Can a CA file FEMA forms directly with RBI?
Most FEMA filings flow through AD Bank. CA prepares the form, company submits to AD Bank, AD Bank uploads to RBI FIRMS portal.
What is the FEMA Schedule FA reporting in ITR?
Schedule FA is the Income-tax reporting – every resident with foreign assets must disclose. Penalty under Black Money (UFIA) Act 2015 is materially more severe than FEMA compounding.
We are an NRI shareholding in an Indian company - do we need FEMA compliance?
Company files FC-GPR / FC-TRS for allotment / transfer involving you. NRI shareholder’s direct obligation: dividend WHT, capital gains on sale, source-of-funds at remittance.