FEMA Consultant in Pune
Several German, Japanese and American engineering groups have Indian subsidiaries in Pune, and their FEMA obligations follow the money: equity priced under Rule 21 and reported in FC-GPR within 30 days of allotment, loans from the parent registered as external commercial borrowings, and the FLA return every 15 July. We manage these filings for Pune subsidiaries and startups from Chennai.
Pune subsidiaries frequently pay their parents for technology — royalties, technical fees, engineering support — and receive capital and loans in return. FEMA treats the two directions differently: capital and loans are capital-account transactions with their own reporting, while royalties and fees are current-account payments that generally need no RBI approval but still pass through withholding tax and transfer pricing.
Key facts for Pune companies
| Item | Pune |
|---|---|
| Registrar of Companies | The Registrar of Companies, Pune |
| FEMA compounding applications | The RBI Regional Office at Mumbai |
| NCLT bench | The Mumbai 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 Pune subsidiary need before paying a royalty to its parent?
A technology licence agreement; a transfer-pricing analysis showing the rate is at arm's length; and tax deducted at the rate allowed by the tax treaty with the parent's country, supported by the parent's tax residency certificate. FEMA does not cap the royalty, so the authorised dealer bank remits on the strength of these documents and the withholding-tax compliance.
Foreign investment in Pune
Foreign engineering subsidiaries
Pune subsidiaries of foreign groups report each infusion in FC-GPR, file the FLA return every year, and may also receive external commercial borrowings from the parent, which have their own reporting.
Startups with foreign investors
Venture-funded startups price each issue to non-residents under Rule 21 and file FC-GPR within 30 days of allotment.
External commercial borrowings
Foreign parents often fund Pune subsidiaries partly by loans. External commercial borrowings follow RBI's framework: the loan is registered with RBI through the authorised dealer bank before drawdown, and monthly returns are filed.
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.
- Pune 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 Pune company?
The RBI Regional Office at Mumbai. Applications can be filed physically or on RBI's PRAVAAH portal, with a fee of ₹10,000 plus GST.
Can a Pune subsidiary convert royalties it owes the parent into shares?
Yes. Royalty or technical-fee amounts due to a foreign collaborator can be converted into equity — under the automatic route where the company's sector is itself under that route — provided the shares are priced under Rule 21, tax on the royalty has been deducted, and the issue is reported in FC-GPR within 30 days.
Do you have an office in Pune?
No. We serve Pune clients from our office at Spencer Plaza, Anna Salai, Chennai, through video consultations, secure document sharing and digitally signed filings and reports.
Related Services for Pune Businesses
Company Registration in Pune
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 Pune Companies
Talk to us about foreign investment reporting for your Pune company.