FEMA Consultant in Chandigarh
The Tricity's links with the Punjabi diaspora mean some local companies have shareholders in Canada, the UK or Australia. Each investment they make is either repatriable foreign investment — priced under Rule 21, allotted within 60 days and reported in FC-GPR — or non-repatriable investment under Schedule IV. We advise Chandigarh companies on the route and handle the filings from Chennai, through their banks.
Compounding applications for foreign-investment contraventions by a company registered in the Union territory go to the RBI Regional Office at Chandigarh, whose foreign-exchange department also handles much of Haryana outside the districts next to Delhi. Routine reporting does not involve the regional office; it runs through the authorised dealer bank on FIRMS.
Key facts for Chandigarh companies
| Item | Chandigarh |
|---|---|
| Registrar of Companies | The Registrar of Companies, Chandigarh (Punjab and Chandigarh) |
| FEMA compounding applications | The RBI Regional Office at Chandigarh |
| NCLT bench | The Chandigarh Bench of the National Company Law Tribunal |
| FEMA reporting | Online on RBI's FIRMS portal through the authorised dealer bank |
What must be reported when a foreign investor invests?
Shares issued to a non-resident are reported in Form FC-GPR within 30 days of issue; a transfer between a resident and a non-resident in Form FC-TRS within 60 days; a downstream investment in Form DI within 30 days; and every company with foreign investment files the FLA return by 15 July. Equity instruments must be issued within 60 days of receiving the money, or the money refunded within the next 15 days. Step-by-step FC-GPR and FC-TRS filing.
Is approval needed, and how is the price fixed?
Most sectors are open under the automatic route; investment from a country sharing a land border with India needs government approval (Press Note 3 of 2020). Shares are issued at not less than fair value under Rule 21 of the FEMA (Non-debt Instruments) Rules, 2019, certified by a chartered accountant, merchant banker or cost accountant. More on Rule 21 valuations.
When does a Chandigarh company's NRI shareholder need a valuation?
At issue, shares taken on a repatriation basis must be priced at not less than fair value under Rule 21. At exit, when the NRI sells to a resident, the price cannot exceed fair value, and the resident files FC-TRS. Shares held on a non-repatriation basis sit outside these FEMA pricing rules, but the income-tax rules on transfers below fair market value still apply to both sides.
Foreign investment in Chandigarh
NRI investment
An NRI's investment on a non-repatriation basis under Schedule IV of the FEMA (Non-debt Instruments) Rules, 2019 is treated as domestic; on a repatriation basis it follows the FDI pricing and reporting rules.
Remittances abroad
Residents sending money abroad for education, investment or family use do so under the Liberalised Remittance Scheme, up to USD 250,000 per financial year.
NRI-owned property companies
Some NRI families hold Tricity property through companies. An NRI cannot invest in a company engaged in real estate business — dealing in land and buildings for profit — or in farmhouse construction, on either a repatriation or a non-repatriation basis; construction-development projects follow their own conditions, so the company's activity is checked before NRI shares are issued or transferred.
About V Viswanathan & Associates
- Chartered Accountants, FRN 013713S— Practising since 2012 from G-131, Spencer Plaza, Anna Salai, Chennai.
- IBBI Registered Valuer— Securities and financial assets, CA V. Viswanathan (IBBI/RV/03/2019/12333).
- FCA, ACS, CFE— Company law, tax and forensic accounting under one roof.
- Chandigarh clients— Served from Chennai through video consultations and digitally signed filings.
Frequently Asked Questions
What is the deadline for Form FC-GPR?
Within 30 days from the date of issue of the shares to the non-resident investor, filed on RBI's FIRMS portal and processed by the company's authorised dealer bank (Regulation 4(1) of the FEMA (Mode of Payment and Reporting of Non-Debt Instruments) Regulations, 2019). The shares themselves must be issued within 60 days of receiving the money, or the money refunded within 15 days after that.
What happens if FC-GPR or FC-TRS is filed late?
A delay of up to three years can usually be regularised by paying a late submission fee through the authorised dealer bank: ₹7,500 plus 0.025% of the amount involved for each year of delay (counted in months), capped at the amount involved, under RBI's A.P. (DIR Series) Circular No. 16 of 30 September 2022. A late FLA return attracts a flat ₹7,500. Longer delays and other contraventions are compounded by RBI on an application.
Where is a FEMA compounding application filed for a Chandigarh company?
The RBI Regional Office at Chandigarh. Applications can be filed physically or on RBI's PRAVAAH portal, with a fee of ₹10,000 plus GST.
Can an NRI shareholder of a Chandigarh company receive dividends abroad?
Yes. On a repatriation basis it is remitted through the authorised dealer bank after tax is deducted. On a non-repatriation basis it is credited to the NRO account and can still be sent abroad as current income, net of tax, through the bank.
Do you have an office in Chandigarh?
No. We serve Chandigarh clients from our office at Spencer Plaza, Anna Salai, Chennai, through video consultations, secure document sharing and digitally signed filings and reports.
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SPICe+ incorporation, state stamp duty and the registrations that follow.
Law stated as at 27 Oct 2026. Official sources: Companies Act, 2013 (MCA), FEMA and RBI directions (RBI), Registered valuers (IBBI). Reviewed by CA V. Viswanathan, FCA, ACS, CFE, IBBI Registered Valuer (IBBI/RV/03/2019/12333).
FEMA Compliance for Chandigarh Companies
Talk to us about foreign investment reporting for your Chandigarh company.