Lenders Law

The Foreign Exchange Management (Establishment in India of a branch office or a liaison office or a project office or any other place of business) Regulations, 2016 have been the governing framework for foreign entities establishing Branch Offices (BOs), Liaison Offices (LOs), Project Offices (POs), or other business entities in India. Now, the Reserve Bank of India, on 3rd October, 2025, published  Draft Foreign Exchange Management (Establishment in India of a branch or office) Regulations, 2025  proposing several clarifications, procedural updates, and operational guidelines to streamline and modernize the framework. The 2025 draft keeps the core eligibility and operational principles of FEMA 2016 but streamlines processes, strengthens reporting and compliance, formalizes closure and appeal mechanisms, and assigns explicit responsibilities to designated banks. It is designed to make foreign office establishment in India more transparent and accountable while retaining flexi...

Gift under FEMA — Light Theme Type of gift From NRI to NRI From Resident to NRI From NRI to Resident From Resident to Resident Foreign currency – LRS limits of USD 250,000 per FY would apply to the donor. (i) Under Rupee Drawing Agreement method, no limit on personal inward remittances (business capped at INR 15 lakhs for each remittance). (ii) Under Money Transfer Service Scheme, max $2,500 per transfer, max 30 transfers per FY. Only cross-border personal remittances, such as family maintenance and remittances favouring foreign tourists visiting India allowed. NRIs can gift cash, but residents cannot hold more than $2,000 (or equivalent) at any time. ...