Foreign Investment, FEMA and Exchange Control
Money entering India and money leaving it are governed by a framework that moves faster than most boards can track, and the consequences fall on the Indian entity and on its directors personally.
What we do
We advise on the route and the sectoral conditions before a term sheet is signed rather than after. Entry structuring and the choice between a subsidiary, a branch, a liaison office and a limited liability partnership. Sectoral caps and government approval conditions. Pricing guidelines and valuation certificates. Downstream investment and indirect foreign investment, which is where otherwise sound structures fail. Deferred consideration, escrow and share swap arrangements. The reporting chain from FC-GPR through FC-TRS to the annual return on foreign liabilities and assets. Where reporting has already been missed we handle compounding before the Reserve Bank and the correspondence that goes with it. On the outbound side, overseas direct investment, the round-tripping restrictions and annual performance reporting. Foreign counsel instructing us receive the position in the form they need, being feasibility, approvals, realistic timeline and failure modes, not a recitation of the master direction.
Experience
The matters below are described without identifying the client, unless the client has consented in writing to being named.
