In India, Foreign Exchange Management Act (FEMA), 1999, and the Regulations made thereunder govern the foreign exchange market in India. Foreign exchange can be in the form of foreign investment, payments related to import and export of goods or services, loans, interests, donations, gifts, etc. Reserve Bank of India, which is also an apex bank of the country is the regulator for the foreign exchange market. Further, wherever applicable approval from the Department of Industrial Policy (DIPP) and various Ministries may also be required depending on the nature of the transactions.
Reporting requirement for Liaison Office/ Branch Office/ Project Office
The onus of filing Form FC-TRS is on the resident transferor/ transferee or the person resident outside India holding capital instruments on a non-repatriable basis, as the case may be. Form FCTRS shall be filed online on RBI’s SMF portal within sixty days of the transfer of capital instruments or receipt/ remittance of funds whichever is earlier.
External Commercial Borrowing (ECB):
ECB can be accessed either under Automatic Route or under Approval Route. The reporting requirement for ECB include:
Overseas Direct Investment
Form ODI Part I: Application for allotment of Unique Identification Number (UIN) and reporting of Remittances/ Transactions
Form ODI Part II: Annual Performance Report (APR)
Form ODI Part III: Report on disinvestment by way of
Reporting requirement for Limited Liability Partnership
In addition to the aforesaid reporting requirements, our team of dedicated professionals can assist with the below mentioned compliance: