Valuation For Share Swap Mergers: Special Considerations
A share swap can make a merger look cash-light, but it does not make the deal simple. Instead of paying cash, the acquiring company issues shares to the target’s shareholders. The central question is: how many should they receive? That answer comes from the share exchange ratio. A weak ratio can dilute one shareholder group, […]
Common FEMA Compounding Cases And How To Avoid RBI Penalties
Foreign investment involves connected steps such as receiving funds, checking the entry route, issuing shares, obtaining a valuation and filing RBI forms. A missed deadline or pricing error can create a contravention under the Foreign Exchange Management Act, 1999. Compounding lets a person or company voluntarily admit an eligible FEMA contravention and seek resolution by […]
Annual Return On Foreign Liabilities And Assets: Who Must File And When
An Indian business that has foreign investment or has invested outside India may have an annual RBI reporting duty even when no fresh transaction took place during the year. That duty is the Annual Return on Foreign Liabilities and Assets, commonly called the FLA Return. The return records foreign liabilities and assets as at the […]
Downstream Investment And Indirect Foreign Investment: FEMA Reporting Obligations
Foreign investment does not always reach an Indian business directly from an overseas investor. In many group structures, a foreign investor first invests in an Indian holding company or subsidiary, which then invests in another Indian entity. That second transaction may be downstream investment and, depending on the ownership and control of the investing entity, […]
FC-GPR Filing Deadline And Penalties For Late Filing
After receiving foreign investment and allotting shares, an Indian company must report the issue to the Reserve Bank of India (RBI) in Form FC-GPR. Missing this step can lead to a late submission fee and, in unresolved cases, action under the Foreign Exchange Management Act, 1999 (FEMA). The most important rule is simple: Form FC-GPR […]
FC-GPR Filing Process: Step-By-Step Guide To The FIRMS Portal
When an Indian company issues equity instruments to a person resident outside India, it must report the issue through Form FC-GPR on the Reserve Bank of India’s FIRMS portal. The filing can be returned when the Entity Master, investor details, valuation documents or shareholding pattern do not match. This guide explains the FC-GPR filing process […]
Automatic Route vs Approval Route FDI: Full Comparison With Examples
Foreign investors planning to enter India often come across two terms: the automatic route and the approval route. These routes determine whether an investor can proceed without prior government permission or must obtain approval before bringing foreign investment into the country. The difference affects the incorporation structure, investment timeline, documentation and compliance process. Choosing the […]
FDI Sectoral Caps In India: Sector-Wise Limits And Prohibited Sectors In 2026
India permits up to 100% foreign direct investment in many business activities. That does not mean every foreign investor can automatically own an Indian company without restrictions. The permitted ownership percentage, approval route and investment conditions depend on the company’s actual business activity. Banking, defence, media, retail, insurance and space businesses, for example, follow different […]
What Is FEMA And How Does It Govern Foreign Investment Into India?
A foreign company planning to establish a presence in India must consider more than company registration. The Indian entity must also receive foreign investment through permitted banking channels, follow sector-specific ownership limits, issue shares at a compliant price and complete the required Reserve Bank of India filings. These foreign exchange requirements are mainly governed by […]
LLP Agreement: What It Must Contain And Why It Matters
An LLP agreement is the document that explains how a Limited Liability Partnership will operate. It records what each partner will contribute, how profits and losses will be divided, who can make business decisions, and what happens when a partner joins, resigns or disputes a decision. This agreement is not a document that should be […]