FEMA Consultant in Delhi
Delhi is where many foreign groups keep their Indian head office or liaison office, so FEMA work here runs on a steady cycle: pricing and reporting each capital infusion in FC-GPR, the FLA return every 15 July, Form DI when the Indian company invests further down, and the annual activity certificate for a liaison office. We handle these for Delhi entities from Chennai, through their authorised dealer bank.
Delhi companies with investors from countries sharing a land border with India, or in sectors under the government route, apply on the Foreign Investment Facilitation Portal, and the approval has to be in hand before the money is received. For everyone else the automatic route applies, and the work is in pricing, timing and reporting.
Key facts for Delhi companies
| Item | Delhi |
|---|---|
| Registrar of Companies | The Registrar of Companies, NCT of Delhi-I or Delhi-II, depending on the district |
| FEMA compounding applications | The RBI Regional Office at New Delhi |
| NCLT bench | The New Delhi Benches 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.
How is a missed FLA return fixed for a Delhi company?
The FLA return is due by 15 July every year from each company that holds foreign direct investment or has invested abroad. A missed return attracts a flat late submission fee of ₹7,500, because it reports positions rather than a flow of money, and the return itself is filed along with the fee.
Illustration (assumed position)
A Delhi company received foreign investment in the year to March 2024 and filed its FC-GPR, but never filed the FLA returns due in July 2024, 2025 and 2026. Each year is a separate return, so all three are filed, each with its own ₹7,500 fee.
Can a foreign buyer of a Delhi company pay part of the price later?
Yes, within limits. Under Rule 9(6) of the FEMA (Non-debt Instruments) Rules, 2019, up to 25% of the total consideration on a transfer between a resident and a non-resident can be deferred or held in escrow for up to 18 months from the transfer agreement, or covered by an indemnity for up to 18 months from payment of the full consideration. The price as a whole must still meet the Rule 21 pricing, and the FC-TRS is filed on the transfer.
Foreign investment in Delhi
Head offices that hold Indian subsidiaries
A foreign-owned Delhi head office that also holds shares in other Indian companies reports two flows: the capital it receives from abroad, in FC-GPR, and each onward investment, in Form DI. Its annual FLA return covers its foreign liabilities and any investment abroad; the onward Indian investments are reported only in Form DI.
Investors from land-border countries
Investment from an entity in a country sharing a land border with India, or whose beneficial owner is in such a country, needs government approval under Press Note 3 (2020), whatever the sector.
Liaison and branch offices
Foreign companies operating through a liaison or branch office in Delhi file an annual activity certificate through their authorised dealer bank, and a liaison office cannot earn income in India.
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.
- Delhi 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 Delhi company?
The RBI Regional Office at New Delhi. Applications can be filed physically or on RBI's PRAVAAH portal, with a fee of ₹10,000 plus GST.
Can the parent's money reach the Delhi company before the board approves the allotment?
Yes; the money usually arrives first. The company then has 60 days from receipt to allot and 30 days from allotment to file FC-GPR, and money that cannot be allotted within 60 days goes back within the following 15 days.
Do you have an office in Delhi?
No. We serve Delhi 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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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).
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