Chartered Accountants◆Practising since 2016

Germany to India · FEMA

Funding the Indian company from Germany: equity, loans and RBI reporting

CA Utsav Dogra, Chartered Accountant, ICAI M. No. 542375 · Updated

In brief

The German parent remits euros through an authorised dealer bank; the company allots shares within 60 days and files FC-GPR within 30 days of allotment, at no less than fair value. Parent loans are external commercial borrowings, and every year the company files the FLA return by 15 July.

What is specific to German companies

Interest on loans from KfW, DEG or Hermes-backed lenders can be exempt in India under the treaty, which can make development-bank finance cheaper than ordinary intercompany loans.

Interest on KfW, DEG or Hermes-backed loans can be exempt in India under the treaty.

Our services

How SU and Company helps

We handle the FEMA side of every capital movement and fix past gaps.

  • Valuation certificates and pricing checks
  • FC-GPR, FC-TRS and downstream investment filings
  • ECB loan registration and monthly returns
  • Annual FLA return
  • Late fees and compounding applications

Questions

What if FC-GPR is filed late?

A late submission fee applies within the permitted window; beyond it, the contravention is compounded with the RBI.

General information as at 5 November 2026, not advice for a particular case. Indian and German rules change often; confirm the current position before acting. German law points should be confirmed with a German adviser.

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