What corporate legal services does Corporate Legit provide?

Corporate Legit offers India Entry Services, International Taxation, Direct & Indirect Taxation, Secretarial & Corporate Legal Compliances, Foreign Direct Investment, Intellectual Property Rights, Licensing and Registration, company registration services, Merger and Amalgamation (M&A), Litigation, Virtual CFO Services, International Advisory, Audit Services, and Registration of NGOs.

What India Entry Services do you offer?

India Entry Services helps foreign companies establish operations in India. The service assists with business structuring, necessary approvals, and compliance requirements for foreign businesses seeking to enter the Indian market.

What does your Corporate Secretarial practice cover?

Our Corporate Secretarial practice handles statutory compliance requirements for companies operating in India, including corporate legal documentation, board meeting management, and regulatory filings.

What are your Corporate Restructuring services?

Corporate Legit’s restructuring services include mergers and acquisitions, demergers, and corporate restructuring activities in accordance with regulatory requirements.

What Intellectual Property services do you provide?

We provide trademark search and registration services in IP databases, along with other intellectual property protection services, to safeguard clients’ IP rights in India.

How does Corporate Legit handle taxation matters?

Our taxation practice provides advice under Direct & Indirect Taxation, including income tax planning, GST compliance, double taxation avoidance advisory, and international taxation matters, to ensure clients remain compliant with Indian tax laws

What Registration & Licensing Services do you offer?

Corporate Legit provides registration and licensing services to help businesses obtain the necessary operational permits and registrations to conduct business legally in India.

What are your Regulatory Compliance & Audit Services?

We provide Corporate Compliance services to help businesses meet their statutory obligations and remain compliant with Indian regulatory requirements, along with supporting them through audit services in India whenever needed.

Do you provide Virtual CFO Services?

Yes, Corporate Legit offers Virtual CFO services for businesses requiring financial management expertise without a full-time Chief Financial Officer.

What makes Corporate Legit’s team qualified?

The senior members of the Firm possess professional qualifications in law, accountancy, company secretarial practices and management with international class experience from working with world-class advisory firms, including Big-4 accounting firms and international law firms.

Do you assist with NGO registration?

Yes, Corporate Legit provides Registration of NGOs (Non-Government Organisation) services to help establish non-profit entities in India.

How can businesses contact Corporate Legit?

Businesses can contact Corporate Legit at +91 9990607535, email at office@thecorporatelegit.com, or visit the office at A-77, Second Floor, Sector-4, Noida 201301, New Delhi NCR, India.

FEMA Export Import Rules 2026: What Foreign Companies in India Must Know

October 9, 2026
Gaurav Vashistha
Fema Compliance for Foreign Companies in India
0

Table of Content

From October 1, 2026, India’s cross-border trade rules change significantly. The Reserve Bank of India notified the Foreign Exchange Management (Export and Import of Goods and Services) Regulations 2026 (Notification No. FEMA 23(R)/2026-RB, as amended September 22, 2026). The FEMA Export Import Rules 2026 replace the 2015 export regulations and the separate Master Directions on exports and imports with one unified rulebook.

For foreign companies operating in India, this is a major step toward ease of doing business in India.

Who Do the FEMA Export Import Rules 2026 Apply To?

The new regulations apply to every Indian entity that imports or exports, including:

Wholly owned subsidiaries of foreign companies
Joint ventures with Indian partners
Branch offices of foreign companies
Project offices for project-related imports
Global Capability Centres, IT back offices, and shared support service centres

Import Payments: The Biggest Relief Under the New Rules

Until now, importers had to pay for goods within 6 months from shipment. Under the FEMA Export Import Rules 2026, payment follows the underlying commercial contract or purchase order terms (Regulation 9).

Import Category	Up to September 30, 2026	From October 1, 2026
Import of goods	Within 6 months from shipment	As per contract / PO terms
Import of services	Per invoice, no specific rule	As per contract, monitored by AD bank
Extension	AD bank, 6 months at a time, maximum 3 years	AD bank, on merit, per its own policy

Why it matters: most foreign subsidiaries import from their parent or group companies. They can now use the credit period agreed in the intercompany agreement, improving working capital. Long deferrals may still fall under trade credit rules, so structure them carefully.

Export Realisation Timelines Under FEMA Export Import Rules 2026

Export proceeds must still be realised and repatriated to India through the Authorised Dealer bank.

Export of services (key for GCCs and IT companies):

Invoice Currency	Up to September 30, 2026	From October 1, 2026
Foreign currency	9 months	9 months from invoice date
Indian Rupees (INR)	9 months	12 months

Export of goods:

Category	Up to September 30, 2026	From October 1, 2026
Normal exports, foreign currency	9 months	9 months from shipment
Normal exports, INR	9 months	12 months
Overseas warehouse	15 months from shipment	9 months from date of sale
SEZ / EOU / STPI / Status Holder	9 months	9 months

AD banks can grant extensions on a reasoned request.

Third-Party Payments Now Expressly Permitted

Regulation 8 of the FEMA Export Import Rules 2026 permits third-party receipts and payments where the AD bank is satisfied the transaction is genuine. This supports group treasury and regional HQ payment structures.

Transaction	Up to September 30, 2026	From October 1, 2026
Import of goods	Allowed with strict conditions	Allowed under Regulation 8
Export of goods	Allowed with strict conditions	Allowed under Regulation 8
Import of services	No express provision	Allowed under Regulation 8
Export of services	Software exports only	Allowed under Regulation 8

More Ease-of-Business Measures

Set-off (Regulation 7): export receivables can be netted against import payables with the same overseas party or its group companies, including goods against services.
Rs. 10 lakh simplified closure: small import and export entries can be closed by self-declaration, including quarterly bulk filing.
Single Export Declaration Form: replaces SOFTEX for software exports. One monthly EDF covers all service exports.

Action Checklist Before October 1, 2026

Review payment terms in intercompany supply and service agreements
Set up monthly EDF filing for service exports
Reconcile open EDPMS and IDPMS entries
Record third-party payers on invoices and contracts
Obtain your AD bank’s new FEMA 2026 policy or SOP

How Corporate Legit Can Help

Corporate Legit Consulting LLP advises foreign companies, especially Japanese and Korean investors, on FEMA compliance, AD bank documentation, intercompany agreements and transition to the new regime.

Contact our FEMA experts today to make your India trade operations compliant from day one.

Frequently Asked Questions

1.When do the FEMA Export Import Rules 2026 apply?

The regulations apply to transactions on or after October 1, 2026. Transactions entered into before that date continue to follow the prior framework, specifically the 2015 export regulations and associated Master Directions.

2. Is there still a payment deadline for imports under the new rules?

Yes, but the deadline is now determined by the underlying commercial contract or purchase order rather than a fixed 6-month statutory window. The AD bank monitors compliance with the contractual payment timeline and can grant extensions on merit under its own policy.

3. Can a foreign parent company pay an Indian subsidiary's export invoices directly?

Yes. Third-party receipts are expressly permitted under Regulation 8 of the FEMA Export Import Rules 2026 where the AD bank is satisfied that the transaction is genuine. This enables group treasury centralisation and regional headquarters payment structures that were previously handled under stricter conditions.

4. What changed for INR-invoiced service exports under the 2026 rules?

The repatriation period for INR-invoiced service exports extended from 9 months to 12 months from the invoice date. Foreign currency-invoiced service exports remain at 9 months. This is particularly relevant for GCCs and IT companies that invoice intercompany services in INR to their overseas group entities.

5. Does the Single Export Declaration Form replace SOFTEX for all service exports?

Yes. The monthly EDF replaces SOFTEX for software and IT service exports. One monthly EDF filing now covers all service exports for the month, replacing the transaction-by-transaction SOFTEX filing that applied previously. Companies should confirm the EDF process with their AD bank before October 1, 2026.