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    Filings that keep pace with the money

    We set the route before any money moves, then file each RBI form as the event happens. The yearly returns go on a calendar, and a flip is checked before anyone signs.

    If any investor is foreign, the shares must be issued within 60 days of the money arriving under the FEMA rules. (read where we wrote it)

    60 daysTo issue shares once a foreign investor's money arrives

    How do the filings stay ahead of the money?

    The first step comes before anything moves. The next two run with every round and every year.

    1. Set the route before money moves

      Money coming into India and money going out each follow their own rules. Form FC comes before the first payment abroad, never after.

    2. Report each share issue and transfer on time

      FC-GPR within 30 days of issuing shares to a foreign investor, and FC-TRS within 60 days of a transfer between a resident and a non-resident.

    3. File the yearly returns

      The FLA return to RBI by 15 July, an annual performance report by 31 December for each investment abroad, and the Registrar's filings.

    4. Check a flip or a round trip before anyone signs

      Moving the parent abroad or back is a sale for tax. Money that leaves India and returns is allowed now, but only within a limit on layers.

    What do founders ask about FEMA and RBI?

    What does FEMA mean for a US–India company?

    FEMA is India's Foreign Exchange Management Act, the rules on money crossing the border. It decides which RBI filings follow when foreign money comes in or Indian money goes out.

    What happens if an FC-GPR is filed late?

    A late submission fee, or compounding, which is a formal settlement with RBI. It is one of the first things an investor's lawyers check, and it can delay the next round's closing.

    Does a dormant foreign subsidiary still need an annual performance report?

    Yes. It is due by 31 December for every foreign company you hold, dormant or not, on audited accounts. Until it is filed, you cannot commit more money to that company.

    Is round-tripping allowed?

    Within limits, since the 2022 overseas investment rules. You cannot invest in a foreign company that has invested back into India if the structure runs to more than two layers of subsidiaries.