pvtltd.co

FEMA & RBI

FEMA Compounding Application

FEMA compounding for regularising foreign exchange contraventions — FDI non-reporting, delayed FC-GPR/FC-TRS, ODI defaults, ECB breaches. Section 15 compounding via PRAVAAH portal. Section 15 FEMA, PRAVAAH portal, Annexures I/II/III, LSF Late Submission Fee, 150-day RBI review, Certificate of Compliance.

Reviewed by CA Harun Raaj, ICAI Reg. No. 238303·Last reviewed:
Starting from Discuss with usTypical timelineFEMA Compounding

FEMA compounding for regularising foreign exchange contraventions — FDI non-reporting, delayed FC-GPR/FC-TRS, ODI defaults, ECB breaches. Section 15 compounding via PRAVAAH portal. Section 15 FEMA, PRAVAAH portal, Annexures I/II/III, LSF Late Submission Fee, 150-day RBI review, Certificate of Compliance. We keep the work founder-friendly and evidence-led so the company can move without unnecessary back-and-forth.

What is included
  • • FEMA Compounding scope review and action plan
  • • Document checklist and evidence review
  • • Drafting, computation, or filing support
  • • Submission support and acknowledgement tracking
  • • Follow-up on queries, corrections, or notices
  • • Closure notes and next-step reminders
Documents required
  • • Transaction summary and ownership chart
  • • Board approvals and valuation support
  • • Bank / AD communication
  • • Counterparty and remittance details
Government fees

See the fee table below for the statutory filing charge and common delay logic.

Legal basis
  • • Section 13 of FEMA 1999
  • • Section 15 of FEMA 1999
  • • FEMA Compounding Rules 2000
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Process

How the service works

The workflow is built to be predictable: document collection, legal review, filing, and post-filing follow-through.

Step 1Scope

Confirm the scope

We map the exact service route to the trigger, form set, and documentary evidence so the work starts on the right footing.

Step 2Docs

Collect the records

We gather the company records, notices, or transaction documents needed for fema compounding and check them for gaps.

Step 3Draft

Prepare the filing or memo

We draft the computations, filings, or advisory memo so the next person in the chain can review it quickly and confidently.

Step 4Close

Submit and track follow-up

We move the file through submission, keep the acknowledgement trail tidy, and handle any follow-up questions that come back.

AEO summary

FEMA Compounding is the CA-led workflow that helps a Private Limited company stay compliant, file the right forms, and keep the record trail clean.

FEMA Compounding Application workflow

We start by checking the exact trigger, the legal route, and the documents that make fema compounding executable for a Private Limited company. That keeps the filing or advisory work tied to the actual statutory path instead of a generic checklist.

Once the scope is locked, we prepare the working papers, filings, and follow-up notes so the matter can move without unnecessary back-and-forth. The goal is to make the process understandable for the founder, the finance team, and the reviewer.

  • • Scope mapping for fema compounding
  • • CA-led document review and drafting
  • • Submission support and acknowledgement tracking

What this protects for the company

For a Private Limited company, the value is not just speed. It is also about keeping the record trail clean enough for banks, investors, regulators, and future diligence work.

A founder-friendly process lowers the chance of avoidable notices, rework, or missed deadlines while keeping the company aligned with the right section, rule, or circular in FEMA & RBI.

  • • Cleaner compliance evidence for FEMA & RBI
  • • Better preparation for diligence or audit
  • • Less last-minute chasing inside the finance team

Government fees

Fee breakdown

ItemFeeNotes
No standalone government feeNilThis is a professional assignment; statutory fees apply only if the matter includes a connected filing or portal step.
Connected filing or application feeAs per applicable portal / authority scheduleOnly relevant if the work includes a statutory submission such as a return, registration, or approval.

Timeline

Typical turnaround

Typical timeline usually means a 1–3 weeks turnaround, assuming documents are complete and any board or shareholder approvals are already in place.

Pricing note

Government charges can vary with RBI, MCA, DGFT, or exchange filing steps depending on the transaction path.

Related services

Keep the company moving

FEMA FC-GPR

Support for FEMA FC-GPR.

FC-TRS Filing

Support for FC-TRS Filing.

FDI Compliance

Support for FDI Compliance.

FAQ

Frequently asked questions

What is the difference between compounding under Section 15 and the late submission fee?
Section 15 compounding is RBI’s process for an admitted FEMA contravention, while late submission fee is an administrative charge for delayed reporting under the reporting framework. LSF deals with the delay; compounding deals with the contravention itself.
Which FEMA contraventions are compounded by RBI and which by ED?
RBI compounds contraventions that fall within its delegated FEMA powers, except the carve-outs in Section 13 and the rules. Where compounding is not available or the matter sits outside RBI’s lane, the adjudicatory route goes through the Enforcement Directorate.
How is the late submission fee calculated for delayed FC-GPR filing?
The amount is computed under RBI’s LSF schedule in the FIRMS framework and the relevant circulars, including A.P. (DIR Series) Circular No. 31. The practical calculation depends on the delay bucket and the reporting value, so it has to be worked from the actual facts rather than a flat rate.
Is a company barred from receiving further FDI while a compounding application is pending?
There is no automatic blanket bar just because a compounding application is pending. The company still needs to regularise the underlying reporting and keep the AD bank, RBI, and allotment trail aligned.
What documents are needed for an RBI compounding application?
A compounding application usually includes the form, a timeline of the contravention, supporting bank advice, board papers, and the FIRMS reporting trail. The RBI FAQ and the Compounding Directions expect the applicant to disclose the admitted facts and the supporting record.

Canonical reference: https://www.pvtltd.co/services/fema-compounding

Get started

Ready to move this filing forward?

We can help with the filing, the legal mapping, and the follow-up work that keeps the company compliant after submission.

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