New strategies and aspects for broadening business prospects in global markets have been embraced by the international business sectors. Because of the globalization of foreign trade worldwide, the company reach is not confined to a single country or region. Business companies are hitting their heights in global markets with innovative strategies and overseas enforcement services. In relation to foreign exchange relations, each country has its own set of rules and regulations.
We at AVS & Associates have carved out a niche as the most trustworthy and reliable FEMA Consultant based in India. We do offer FEMA & RBI Consultancy that covers the entire gamut of foreign exchange law in India and abroad. We are just a call away for clearing all your doubts related to FEMA.
Frequently Asked Questions
The Foreign Exchange Management Act, 1999 is an Act of the Parliament of India "to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India".
FEMA's main goal was to assist in promoting foreign trade and payments in India. It was also intended to assist in orderly growth and preservation of the Indian foreign-exchange market. It sets out the processes, formalities, transactions for all foreignexchange transactions in India.
FEMA stands for 'Foreign Exchange Management Act,' an official law consolidating and amending foreign exchange regulations in India. The primary objective of the FEMA Act was to "facilitate external trade and payments and encourage orderly foreign exchange market growth and maintenance in India."
It gives Central Government powers to control payment flows to and from a individual located outside the country. All financial transactions relating to international securities or trade can not be performed without FEMA 's approval.
Under the current rules, an exporter is expected to apply the SDF form for export of products along with the Shipping Bills. Accordingly, RBI required the foreign exchange remittance declaration under the Foreign Exchange Management Act, 1999 to be included in the Shipping Bill.
ECB means international financing that is not in equity form. It's called Foreign Direct Investment (FDI) when it is used in the form of equity capital. ... Under the FDI Policy, convertible instruments are protected. Any other direct capital within the ECB is not permitted.
The Exchange Rate Strategy of the Reserve Bank focuses on ensuring orderly conditions in the foreign exchange market. It closely tracks developments in the financial markets at home and abroad for this reason. It intervenes in the market, where possible, by buying or selling foreign currencies.
RBI's primary roles under FEMA are as follows:
- Regulating foreign exchange transactions by granting general or special permission for foreign exchange transactions, except those situations where particular provisions have been made in Section 3 of the Act, Rules or Regulations.
- The RBI is unable to enforce any limits on current account transactions. In consultation with RBI-Section 5, these can only be imposed by the Central Government. However, in some situations, as set out in the Foreign Exchange Management (Current Account Transactions) Rules, 2000, prior RBI approval is required for current account transactions.
- Specifying payment terms for capital account transactions, Section 6(2).
- By issuing Rules, Regulate / prohibit / restrict:
- Shift or issue of Resident Foreign Security and Non-Resident Indian Security;
- Lending and loans in foreign currencies or to a foreign person;
- Currency export/import or currency notes;
Immovable property transfer outside India;
Providing assurance or protection in the case of foreign exchange transactions, Section 6(3)
5. Determine the time and manner in which foreign exchanges due from exports of goods and services should be obtained (by regulation) Section 8.
6. Granting an exemption from enforcement and repatriation in the cases referred to in Section 9.
7. Permission to deal with foreign exchange, to provide orders to them and to examine the approved person, Sections 10, 11 & 12.
One of the legal frameworks in which a business may engage in a global economy is a foreign-invested enterprise (FIE). At many significant junctures, FIEs appear to have strict government regulation, which can limit how much a business can benefit from foreign investments, as well as the amount of influence over the FIE by a foreign parent.
Except as otherwise provided for in these Regulations, or with the general or special permission of the Reserve Bank, no individual resident in India shall provide any guarantee or guarantee in respect of, or undertake any transaction by any name referred to as having the effect of guaranteeing, any debt, liability or other liability.
Why Select Us?
Our foremost priority is to provide Instant Support and are always very particular on adherence of timely delivery so that you don’t miss out on deadline. We have worked with some most time strict clients and we have never missed our target. Our one thumb rule says that “If we miss a deadline we are out”. Accounts and Finance function need always alert eagle eye approach!
Our prices are most reasonable and under budget that you never realize any cost burden in your organization in comparison of value addition we bring in. We believe in adoption of your business first and fee shall take care of itself mantra. We never bill for disappointment and take ownership. It is how we like to be treated and that is how our customers are served.
We at AVS & Associates only recruit experienced, skilled professionals who have proven expertise in their field. With a diverse Team of Chartered Accountants, Company Secretaries, Lawyers, and various other consultants on board, we offer end to end financial and legal service under one roof saving time and energy and bring synergy effect between various functions.
Having over 20+ years experience in the leadership team ensure we maintain highest ethical standards and never go out of trust with you. We always believe in long term relationship with our clients hence integrity is something we value the most. We ensure transparency in communication, service and cost. Our specialized experts helps in maintaining high quality.