FEMA & Cross-Border Advisory
In short
Foreign investment into an Indian company is governed by the Foreign Exchange Management Act, 1999 (FEMA) and the FDI policy. KNAP Advisory helps foreign investors and founders choose the right entry route and structure, incorporate an Indian company with foreign directors or shareholders, and complete the RBI reporting that follows each investment.
Overview
Most sectors allow foreign investment under the automatic route, while some require government approval or have caps. Each investment must be priced in line with FEMA valuation rules and reported to the RBI through the FIRMS portal within the prescribed time.
Getting the structure right at the start avoids compounding applications and delays when the company later raises funds or repatriates money.
Documents required
- Passport and address proof of foreign investors or directors
- Details of the proposed investment and business
- KYC from the remitting bank, for reporting
We share an exact checklist for your case before you start, since requirements vary with the structure and the people involved.
Process
Assess
We review the sector, entry route and conditions.
Structure
We recommend the structure and incorporate the Indian entity.
Invest
We coordinate valuation and share allotment.
Report
FEMA reporting, including Form FC-GPR or FC-TRS, is completed on time.
What KNAP Advisory handles
- Company incorporation with foreign directors or shareholders
- FDI route and sectoral cap review
- Valuation coordination
- RBI reporting through the FIRMS portal
- Fund structuring and cross-border consultancy
Frequently asked questions
Can a foreign national own 100% of an Indian private limited company?
In sectors where 100% FDI is permitted under the automatic route, yes. The company still needs at least one director resident in India and at least two shareholders.
What reporting is required after foreign investment?
The Indian company reports the issue of shares to a foreign investor in Form FC-GPR, and transfers between residents and non-residents are reported in Form FC-TRS, through the RBI's FIRMS portal within the prescribed time.