SAFE Notes and their acceptability under FEMA

What is a SAFE Note? A SAFE (Simple Agreement for Future Equity) is an investment instrument through which an investor provides capital to a startup in exchange for a right to receive equity shares in the future upon the occurrence of a specified event—such as a priced funding round....

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Compounding under Foreign Exchange and Management Act 1999

Compounding under FEMA refers to the voluntary process where an individual or entity admits to a breach (contravention) of the provisions of the Foreign Exchange Management Act, 1999, and seeks to resolve it by paying a prescribed sum, thereby avoiding lengthy legal proceedings or harsher penalties. To apply for...

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Overview Of FEMA Compliances

  The Foreign Exchange Management Act, 1999 (FEMA) is an Act of the Parliament of India “to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India”....

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Annual Return On Foreign Assets & Liabilities

    Annual Return on Foreign Liabilities and Assets (FLA return) under FEMA 1999 (Portal for submitting FLA : https://flair.rbi.org.in)   Purpose The annual return on Foreign Liabilities and Assets (FLA) is required to be submitted directly by all the Indian companies which have received FDI (foreign direct investment)...

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Filing of FC-TRS

  FC-TRS stands for (Form Foreign Currency-Transfer of Shares) Form. This form is filed in case of transfer of shares or convertible debentures of an Indian Corporation from a resident to a Non-Resident/Non-Resident Indian and vice versa by means of sale. The Indian corporation must report the transactions to...

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Filing of FC-GPR

  FC-GPR stands for Foreign Currency- Gross Provisional Return.  An Indian company issuing equity instruments to a person resident outside India should file FC-GPR Form within 30 days from the date of issuance of the equity instruments. There are two ways by which a foreign investor can invest in India–...

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