Founders researching an India entry keep asking the same questions, on Google, on calls, and lately to AI assistants. This page collects the honest short answers in one place. Every answer links to the deeper guide or service page where the full mechanics live.
Frequently Asked Questions
What are FEMA compliances for a foreign-owned company in India?
FEMA is the framework governing foreign money entering and leaving India. For a foreign-owned subsidiary the recurring items are FC-GPR within 30 days of allotting shares against inbound capital, FC-TRS when shares change hands between residents and non residents, the annual FLA return to RBI (due 15 July, extended to 31 July for FY 2025-26), and clean documentation for every remittance to the parent. Our FEMA compliance desk runs this calendar for foreign subsidiaries.
What does it mean to be FEMA compliant?
It means every foreign investment into the entity was reported to RBI through the prescribed filings on time, share allotments match the money received, annual FLA reporting is current, and outward payments to the parent carry the right certifications and withholding. Compliance here is documentary; the test is whether your paper trail survives a bank or RBI query years later.
Who is responsible for FEMA compliance in an Indian subsidiary?
The Indian entity and its directors, not the foreign parent. Filings route through the authorised dealer bank, and a Chartered Accountant or company secretary usually prepares them, but the legal obligation sits with the Indian company. That is why a missed FC-GPR surfaces as a problem for the subsidiary during its next funding round or audit.
What is the full form of FEMA?
Foreign Exchange Management Act, 1999. It replaced the older FERA regime and is administered by the Reserve Bank of India. Day to day, founders meet it through reporting forms like FC-GPR and the FLA return rather than the Act itself.
What is a compliance consultant and what do they do in India?
A compliance consultant keeps a company aligned with the Companies Act, tax law, GST and, for foreign-owned entities, FEMA. In practice that means incorporation filings, the ROC calendar, GST returns, payroll deductions, RBI reporting and the certifications banks demand before cross border payments. For foreign founders the useful version of this role is one accountable team across all of it, which is the model behind our E-CFO service.
How much does a compliance consultant cost in India?
For a foreign-owned subsidiary, realistic professional fees for incorporation run ₹60,000 to ₹1,50,000, and a monthly compliance retainer runs ₹25,000 to ₹60,000 depending on scope. Be careful with ₹999 to ₹1,999 packages: that pricing is a funnel, and the rework, bounced RBI filings and upsells that follow usually cost more than doing it right once. Ask any provider for an itemised quote separating government fees from professional fees.
What are the types of companies you can register in India?
Seven structures cover nearly every case: Private Limited company, Public Limited company, One Person Company, Limited Liability Partnership, Section 8 company for non profits, partnership firm and sole proprietorship. Foreign founders almost always use a Private Limited company because it accepts foreign shareholding through the automatic route and is what banks and investors expect.
How do I register my own company in India as a foreigner?
The path runs through the SPICe Plus filing with the Ministry of Corporate Affairs: notarise and apostille your documents at home, obtain digital signatures and DINs, reserve the name, file, then open the bank account, remit capital and file FC-GPR within 30 days of allotment. The whole process is remote; no India trip is required. The full walkthrough lives in our foreign subsidiary guide and the country specific corridor guides in Insights.
What does the annual compliance calendar look like once the company is live?
Expect ROC annual filings for financial statements and the annual return, an income tax return (31 October for audited companies under the current calendar), periodic GST returns if registered, monthly payroll deposits for TDS and provident fund, and the FLA return each July if there is foreign investment. The rhythm is monthly, quarterly and annual obligations across different authorities, which is exactly what a compliance retainer exists to absorb.
Do I need to be in India to register or run the company?
No. Incorporation, banking and every filing can run remotely with apostilled documents and digital signatures. The one structural requirement is at least one director who meets the residency test, which most foreign founders satisfy with a locally appointed resident director while substantive control stays with them.
Ask the question your situation actually raises
Generic answers only go so far. If your case sits between two of these answers, that is normal, and it is exactly what a discovery call is for.
Facing this in your own entity?
Guides explain the rules. A conversation solves your specific case. Talk to a Krystal7 advisor about your India entry, FEMA, or compliance position.
Book a Discovery Call