FEMA Consultant in Hyderabad
A Hyderabad capability centre rarely receives its capital in one go; the parent sends it tranche by tranche, and each tranche restarts the FEMA sequence — a price that meets FEMA (Rule 21 fair value, or Rule 7 for a rights issue), allotment within 60 days of the money arriving, FC-GPR within 30 days of allotment — with the FLA return due every 15 July regardless. We prepare the certificates and filings for Hyderabad companies from Chennai, through their bank.
Many of Hyderabad's foreign-owned companies are service and research subsidiaries that export to their parents. Their FEMA calendar is predictable, so the trouble usually comes from one missed step — a tranche allotted late, an FLA return forgotten in a busy July — rather than from the rules themselves.
Key facts for Hyderabad companies
| Item | Hyderabad |
|---|---|
| Registrar of Companies | The Registrar of Companies, Hyderabad (Telangana) |
| FEMA compounding applications | The RBI Regional Office at Hyderabad |
| NCLT bench | The Hyderabad 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.
What does a late FC-GPR cost a Hyderabad subsidiary?
Illustration (assumed figures)
A ₹4 crore infusion was reported seven months after the due date. With the delay expressed as 0.58 of a year, the late submission fee is ₹7,500 + 0.025% × ₹4,00,00,000 × 0.58 = ₹13,300, paid through the authorised dealer bank. A delay beyond three years cannot be settled by a fee and goes to compounding before the RBI Regional Office at Hyderabad.
A missed FLA return attracts a flat fee of ₹7,500 instead, because that return does not report a flow of money.
Can the parent fund the Hyderabad unit by loan instead of shares?
It can, but a loan from a foreign parent is an external commercial borrowing, with its own route, reporting and limits, while money for shares is foreign direct investment. Groups commonly use equity for the set-up and loans for later needs. The choice also reaches transfer pricing: interest paid to the parent is an international transaction that goes into the accountant's report.
Foreign investment in Hyderabad
Startups spun out of research institutions
Startups formed to commercialise research from Hyderabad's institutes sometimes take investment from foreign venture funds early. The institution's licence or equity stake is settled before the foreign round, so that the shares issued to the fund are priced on a clean cap table.
Startups with foreign investors
Venture-funded startups reporting CCPS or convertible notes follow the same FC-GPR timeline at allotment, and report conversions when they happen.
Service income versus investment
Research subsidiaries that receive money from the parent for services, rather than for shares, receive export proceeds, not foreign investment. Keeping the two separate from the start avoids FEMA and transfer pricing problems later.
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.
- Hyderabad 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 Hyderabad company?
The RBI Regional Office at Hyderabad. Applications can be filed physically or on RBI's PRAVAAH portal, with a fee of ₹10,000 plus GST.
Does a Hyderabad pharma company need approval before a foreign investor comes in?
Greenfield pharmaceutical projects are under the automatic route. In an existing (brownfield) pharma company, foreign investment above 74% needs government approval, and an investor from a country sharing a land border with India needs approval in every sector.
Do you have an office in Hyderabad?
No. We serve Hyderabad 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).
FEMA Compliance for Hyderabad Companies
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