Regulatory Compliance

RBI Compliance

Foreign investment, cross-border share transfers, and overseas structuring are among the most tightly regulated areas of Indian compliance — and the ones where small errors carry the biggest penalties.

RBI Compliance

8 Services

FEMA Compliance Advisory

Stay compliant with India's foreign exchange laws across cross-border investments, transactions, and business structures.

FLA Return Compliance

File your annual Foreign Liabilities and Assets return with RBI accurately and within the July deadline.

FC-GPR FDI Reporting

Report foreign direct investment inflows to RBI through Form FC-GPR within the mandatory 30-day window.

FC-TRS Share Transfer (Cross-border)

Report share transfers between resident and non-resident shareholders through Form FC-TRS, fully FEMA-compliant.

EMF SMF Reporting

Handle Entity Master Form updates and Statutory Monthly Return filings required for RBI-regulated entities.

WOS Compliance

Manage ongoing RBI and FEMA compliance for your wholly owned subsidiary of a foreign parent company in India.

FEMA Compounding & Representation

Resolve past FEMA violations through RBI's compounding route and avoid prolonged penalty proceedings.

Overseas Business Setup (ODI)

Structure and file your Overseas Direct Investment for setting up or acquiring a business entity abroad.

Understanding RBI and FEMA compliance for cross-border transactions

What this section covers

Money that moves between India and other countries is governed by the Foreign Exchange Management Act, 1999 (FEMA) and the rules and regulations made under it. The Reserve Bank of India administers most of this framework through authorised dealer banks, and reporting is done largely on the RBI’s FIRMS portal.

For money coming into India, the key instruments are the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019 and the RBI Master Direction on Foreign Investment in India. They set entry routes (automatic or government route), sectoral caps, pricing rules and reporting. Common reports include Form FC-GPR when an Indian company issues shares to a person resident outside India, and Form FC-TRS when shares are transferred between residents and non-residents.

For money going out, the Foreign Exchange Management (Overseas Investment) Rules, 2022 and the related regulations govern investment by Indian entities and individuals in foreign companies, including wholly owned subsidiaries and joint ventures abroad.

Every Indian company or LLP with outstanding foreign direct investment or overseas direct investment must also file the annual Foreign Liabilities and Assets (FLA) return by 15 July on the RBI’s FLAIR portal. Where a filing is missed or a transaction did not follow the rules, FEMA provides for compounding of the contravention on application to the RBI.

Who needs these services

Indian companies and LLPs receiving foreign investment, whether from a foreign parent, a venture fund, an NRI shareholder or a foreign individual.
Indian subsidiaries of foreign groups (wholly owned subsidiaries) with recurring reporting, downstream investment and annual return obligations.
Indian businesses expanding abroad by setting up or acquiring an overseas entity.
Companies that discover past lapses, such as delayed reporting, pricing issues or issuing shares without the required reporting, and want to regularise them.
Startups issuing ESOPs or convertible notes to non-residents, which trigger separate reporting.

How to choose between the services

If a foreign investor has just subscribed to fresh shares, the relevant service is FC-GPR (FDI reporting), supported by valuation and board and shareholder approvals.
If existing shares are being bought or sold between a resident and a non-resident, choose FC-TRS.
If you hold foreign investment or own an overseas entity, the annual FLA return is required every year, even when no new investment came in.
If you are an Indian subsidiary of a foreign company, WOS compliance brings together the recurring FEMA, RBI and company law obligations in one place.
If this is your first foreign investment filing, EMF/SMF reporting covers registering the company on FIRMS through the Entity Master Form and filing through the Single Master Form, which precede forms such as FC-GPR.
If you are taking the business outside India, overseas setup covers structuring the investment under the overseas investment rules.
If you need a broader review of how your foreign transactions have been handled, start with FEMA compliance; where a contravention is found, FEMA compounding is the usual route to regularise it, subject to the RBI’s order.

Late filings are often accepted with a late submission fee, while other contraventions may require compounding. The facts of each case decide which applies. Expertvuw assists with documentation and coordination; certifications are issued by independent professionals, and the RBI or the authorised dealer bank decides on each filing.

All services in this section

Frequently asked questions

What is Form FC-GPR and when is it filed?

FC-GPR is the form an Indian company files on the RBI’s FIRMS portal after issuing shares or other eligible instruments to a person resident outside India. Under the current FEMA reporting regulations it is generally due within 30 days of allotment. The filing goes through the company’s authorised dealer bank and usually needs a valuation certificate and a company secretary’s certificate.

Who has to file the FLA return?

Indian companies, LLPs, SEBI-registered AIFs, partnership firms and similar entities that have outstanding foreign direct investment or overseas direct investment must file the Foreign Liabilities and Assets return every year by 15 July on the RBI’s FLAIR portal. The RBI treats non-filing as a contravention of FEMA, so the return should be filed even if no fresh investment was received.

What happens if FEMA reporting was missed?

For many reporting delays the RBI permits filing with a late submission fee calculated under its current directions. Where the lapse is more than a reporting delay, or late submission is not available, the company can apply to the RBI to compound the contravention under FEMA. Compounding closes the matter on payment of the amount set in the RBI’s order.

Can an Indian company set up a subsidiary abroad without RBI approval?

In many cases yes. Under the Foreign Exchange Management (Overseas Investment) Rules, 2022, most overseas direct investment by eligible Indian entities falls under the automatic route through an authorised dealer bank, subject to financial limits and conditions. Certain investments, such as those in restricted sectors or beyond the prescribed limits, still require prior approval.