Cardiff Services

FEMA Due Diligence

FEMA Due Diligence – Overview

The Foreign Exchange Management Act (FEMA) governs all cross-border transactions related to foreign direct investment (FDI), overseas direct investment (ODI), external commercial borrowings (ECB), and share transfers in India. Before receiving funds, entering into a cross-border deal, or during mergers/acquisitions, companies and investors must carry out FEMA due diligence to ensure the transaction is legally valid and compliant with RBI regulations.

 

At Cardiff Services, we provide comprehensive FEMA Due Diligence Services in India, helping startups, corporates, LLPs, and NGOs verify compliance with FEMA laws before or after foreign investment transactions. Our due diligence reviews help avoid penalties, rejections, and compliance disputes, while ensuring smooth regulatory approvals.

Why Choose Cardiff Services for FEMA Due Diligence

At Cardiff Services, we understand that FEMA compliance is often a deal-breaker for foreign investors, VCs, and banks. Our due diligence reports give clarity on whether your organization is compliant, highlight risks, and suggest corrective measures before they become liabilities.

 

We combine regulatory expertise, transaction advisory, and compliance management to provide holistic FEMA due diligence. With Cardiff Services, your organization gains confidence in handling FDI, ODI, ECB, and cross-border share transfers in full compliance with Indian laws.

Key Features of FEMA Due Diligence

  • Investment Compliance Check: Verification of FDI/ODI/ECB compliance with RBI norms.

  • Reporting Review: Ensuring FC-GPR, FC-TRS, EMF, SMF, and FLA filings are properly done.

  • Valuation Validation: Checking share valuation against FEMA and RBI-approved methods.

  • Regulatory Risk Identification: Highlighting gaps in compliance that may lead to penalties.

  • Pre & Post-Investment Advisory: Structuring transactions to remain fully compliant.

  • Compounding Guidance: Assistance in rectifying past FEMA violations.

Documents Required for FEMA Due Diligence

  • Certificate of Incorporation and PAN of the company/LLP.

  • MOA & AOA / LLP Agreement.

  • Shareholding structure and cap table.

  • Details of FDI/ODI/ECB transactions.

  • FIRCs and KYC reports of foreign investors.

  • Valuation certificates (for share issue/transfer).

  • RBI/MCA filings (FC-GPR, FC-TRS, EMF, SMF, FLA).

  • Loan agreements (for ECB).

  • Previous compliance records and acknowledgments.

  • Board and shareholder resolutions.

Step-by-Step Procedure for FEMA Due Diligence

  • Initial Assessment – Review nature of foreign investment or borrowing transaction.

  • Document Verification – Collect filings, valuation reports, FIRCs, and KYC details.

  • Compliance Checklist – Compare with FEMA/RBI requirements for the specific transaction.

  • Gap Analysis – Identify non-compliances, delays, or errors in past filings.

  • Risk Report Preparation – Document findings, risks, and corrective measures.

  • Advisory & Rectification – Guide on rectifying gaps via compounding or corrective filings.

  • Final Compliance Certificate – Provide investor-ready compliance assurance.

Frequently Asked Questions

A company name search ensures that your chosen business name is unique, legally compliant, and not already registered with Companies House UK. It helps you avoid legal disputes, trademark issues, and confusion in the Cardiff business market.

If your desired name is already registered, you’ll need to choose a different name or modify it. Using a taken name could result in rejection by Companies House or potential legal issues. Our experts can help you brainstorm alternative names that are compliant and market-ready.

It’s not advisable to use a name that’s too similar to another company, especially within the same industry. Similar names can confuse customers and risk trademark disputes. A company name search helps you identify these risks early.

For a company name search in Cardiff, you may need:

  • Proposed company name

  • Business entity type (Ltd, LLP, Partnership, etc.)

  • Jurisdiction (Cardiff / UK)

  • Owner or shareholder details (if applicable)

  • Business description

A “high probability” result means your proposed company name is likely to be available, but further checks are recommended. This is why our detailed Cardiff Company Name Search Report includes both identical and similar names for clarity.

Certain words are restricted under UK law (e.g., “bank,” “insurance,” “government”). If you want to use them, you’ll need special approval from regulatory bodies. We guide you through this process if your Cardiff business requires such terms