In today’s global business environment, Indian companies and individuals frequently engage in cross-border transactions such as foreign investments, overseas expansion, and international borrowings. These transactions are regulated under the Foreign Exchange Management Act (FEMA), 1999.

Delays or non-compliance—such as late filing of FDI forms, ODI reporting, or ECB returns—can lead to penalties and regulatory scrutiny. Whether your business is newly established through Private Limited Company Registration or already operating globally, maintaining FEMA compliance is essential.

FEMA provides a practical solution through compounding of offences—a voluntary mechanism that allows businesses to regularize non-compliance by paying a penalty and avoiding litigation. At Dikshant Malhotra & Associates, our expert Company Secretary team offers complete assistance in FEMA compounding, ensuring smooth resolution and future compliance.

• Avoid Legal Proceedings - Resolve FEMA violations without lengthy litigation or prosecution.
• Restore Compliance Status - Regularize past defaults and maintain a clean regulatory record.
• Ensure Business Continuity - Prevent disruptions in operations and cross-border transactions.
• Strengthen Credibility - Build trust with regulators, investors, and financial institutions.
• Faster Resolution - Most cases are resolved within a defined timeframe by RBI.

  We provide comprehensive support to handle FEMA contraventions effectively:

1. Compliance Review & Risk Assessment - Identification of non-compliance in foreign transactions, including reporting gaps and delays, aligned with your overall Business Setup.
2. Compounding Advisory - Detailed guidance on applicable provisions, eligibility, and estimated penalties based on  the nature of contravention.
3. Application Drafting & Filing - Preparation and submission of compounding applications with RBI, supported by accurate documentation and professional Secretarial Services.
4. Documentation Support - Drafting of declarations, board resolutions, and annexures while ensuring alignment with ROC Compliance requirements.
5. RBI Representation & Liaisoning - Handling communication with RBI and Authorized Dealer (AD) Banks, including responses to queries or hearings.
6. Post-Compounding Compliance - Advisory on strengthening internal processes to avoid future defaults, including alignment with Income Tax and regulatory requirements.

• Assessment of Contravention – Identification of delays or non-compliance
• Application Preparation – Drafting and submission to RBI
• Document Submission – Filing supporting documents and declarations
• RBI Review – Addressing queries and clarifications, if any
• Penalty Payment – Payment of compounding amount within prescribed timeline
• Closure Order – Receipt of RBI order regularizing the default

• Extensive expertise in FEMA regulations and cross-border compliance
• Proven experience in handling FDI, ODI, ECB, and remittance-related cases
• Trusted advisors for businesses, including those involved in Foreign Company Registration in India
• Integrated support across compliance areas such as Trademark Registration and corporate governance
• Personalized, end-to-end assistance ensuring efficient and timely resolution

FEMA compounding is governed by:

• Section 13 of FEMA, 1999 – Penalties for contraventions
• Section 15 of FEMA, 1999 – Compounding provisions
• RBI Master Direction on Compounding of Contraventions