The Central Government of India formulated an act to encourage external payments and across the border trades in India known as the Foreign Exchange Management Act. FEMA (Foreign Exchange Management Act) was introduced in the year 1999 to replace an earlier act FERA (Foreign Exchange Regulation Act). FEMA was formulated to fill all the loopholes and drawback of FERA (Foreign Exchange Regulation Act) and hence several economic reforms (major reforms) were introduced under the FEMA act. FEMA was basically introduced to de-regularize and have a liberal economy in India.
FEMA SERVICES
- Preparation and filing of Returns with the Reserve Bank of India on Allotment of Shares in the form of FC-GPR, Transfer of Shares from Resident to Non-Resident or vice versa in the Form of FC-TRS and return with respect to Foreign Assets and Liabilities etc;
- Registering and Closure of Branch, Liaison or Project office of a Foreign Company in India with the Reserve Bank of India as well as Department of Company Affairs etc;
- Compounding the Offences under various provisions of FEMA;
- Preparation and filing of Returns with respect to Non-Banking Finance Company.