What is FEMA compliance for Foreign Investment?
Nexa Consultancy | Startup & Finance Glossary
When an Indian startup receives equity investment from a person resident outside India, it must comply with Foreign Exchange Management Act (FEMA) regulations.
Startup Example: A startup receives $100,000 from a US-based angel investor. It must report this transaction to the RBI within 30 days of issuing shares by filing Form FC-GPR (Foreign Collaboration - General Permission Route) through an authorized dealer bank.
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