The Liberalized Remittance Scheme (LRS): What Every Indian Resident Needs to Know

Liberalized Remittance Scheme (LRS) was introduced in 2004 by the Reserve Bank of India (RBI) as a liberalization measure to facilitate resident individuals to remit funds abroad for permitted current or capital account transactions or combination of both. The Regulations are amended by the RBI from time to time to incorporate the changes in the regulatory framework. Remittance Limit under LRS: Under the LRS, the…

Understanding the FLA Return: Applicability, Filing Process and Penalties

What is FLA Return? The Foreign Liabilities and Asset (FLA) Return is an annual return filed with the Reserve Bank of India (RBI), based on the applicability of certain provisions under the Foreign Exchange Management Act, 1999 (FEMA). Applicability of the Annual FLA Return The annual FLA Return must be submitted by entities that have received Foreign Direct Investment (FDI) and/or made overseas investments (FDI abroad)…

PRAVAAH: RBI’s Digital Gateway for Regulatory Approvals – A New Era for Financial Compliance

In a significant step toward digitizing India’s regulatory ecosystem, the Reserve Bank of India (RBI) has rolled out PRAVAAH – the Platform for Regulatory Application, Validation And AutHorization. Designed as a secure, web-based portal, PRAVAAH is now the single-window interface for all regulatory applications submitted to the RBI. Starting May 1, 2025, RBI has mandated that all regulated entities—from banks and NBFCs to payment system…

A Complete Guide to Bank Accounts in India for Non-Residents

Managing finances in India as a Non-Resident Indian (NRI), Person of Indian Origin (PIO), or foreign national can often seem complex. However, the Reserve Bank of India (RBI) has well-defined regulations that provide clarity on the types of accounts non-residents can open. Understanding these accounts is crucial for efficient fund management, repatriability, and taxation compliance. Understanding NRI and PIO Status An NRI (Non-Resident Indian) is…

The Indian Connection: Liaison Offices and the Complex World of Permanent Establishment

The establishment of Liaison Offices in India, along with nuanced considerations regarding Permanent Establishment, represents a comprehensive exploration of an integral aspect of international business. Liaison Offices in India: Building Bridges Across Borders In the dynamic and diverse landscape of the Indian market, Liaison Offices serve as invaluable instruments for foreign companies seeking to establish…