{"id":29932,"date":"2020-03-27T15:49:27","date_gmt":"2020-03-27T10:19:27","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=29932"},"modified":"2021-02-06T17:01:44","modified_gmt":"2021-02-06T11:31:44","slug":"procedure-for-foreign-direct-investment-fdi-reporting-filing-rbi-form-fc-gpr","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/procedure-for-foreign-direct-investment-fdi-reporting-filing-rbi-form-fc-gpr\/","title":{"rendered":"Procedure for Foreign Direct Investment (FDI) Reporting: Filing RBI Form FC-GPR"},"content":{"rendered":"<p class=\"has-drop-cap\">Foreign\nDirect Investment means an amount of money transferred in India by foreign\ninvestors for the purpose of holding share capital in an Indian company. Simply,\nFDI is an investment made by NR(Non-resident), Foreign Investor Individual, a Company\nor a Firm from one country to another to hold or acquire company ownership\nthrough holding a share. The process involved in the allocation of shares to\nthe foreign investor is known as FDI reporting of filing of RBI Form FC-GPR. <\/p>\n\n\n\n<p>Before discussing the procedure for FDI reporting, we need to get some knowledge of the different routes through which FDI is received in India. There are two <strong><em>types of such routes of <\/em><\/strong><a href=\"https:\/\/enterslice.com\/learning\/types-foreign-investment-india\/\"><strong><em>Foreign Direct Investment<\/em><\/strong><\/a><strong><em> in India<\/em><\/strong> which are as follows:<\/p>\n\n\n\n<ol><li><strong>Automatic\nRoute<\/strong>-In the Automatic Route, the\nfunds are the first infused, and then the post-infusion RBI compliances come\ninto the picture. In this form of Foreign Direct Investment in India, there is\nno approval required from RBI or Government for infusing the funds. <\/li><li><strong>Government\nRoute<\/strong>-In Government Route, the prior\napproval either from the RBI or Government is mandatory before infusing Foreign\nDirect Investment to India. Also, the company or firm is required to get\npermission from the RBI or in some cases, the Government, before receiving the money\nas well as after the funds are received.<\/li><\/ol>\n\n\n\n<p>This\nguide lays down the complete process of FDI Reporting in India of filing of\nForm FC-GRP online.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Procedure for Foreign Direct Investment(FDI)Reporting\nof Share Subscription and <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Allotment&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;An allotment is the systematic distribution of business resources, often pertaining to the distribution of shares during initial public offerings (IPOs) to underwriting firms or to new and(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/allotment\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>Allotment<\/a><\/h2>\n\n\n\n<p>FDI in sectors\/activities to a certain extent which is permitted under the automatic route does not require any prior approval either by the Government or <strong>RBI<\/strong><sup><a href=\"https:\/\/twitter.com\/RBI\"><strong>[1]<\/strong><\/a><\/sup>. The investors are only required to notify the Regional office concerned of the RBI within 30 days of receipt of inward remittances and file the necessary documents online within 30 days of issue of shares to foreign investors.<\/p>\n\n\n\n<p>The\nprocedure for FDI reporting online in India begins with creating a Business and\nEntity user I.D. through the RBI&rsquo;s website. The RBI has completely removed the manual\nfilling and has issued AP (DIR Series) Circular No.40 dated 1<sup>st<\/sup> February\n2016 for online filling or reporting of Form FC-GPR along with the introduction\nof Circular for online filing of Form FC-GPR, making the process mandatory. For\ncreating IDson the portal, the following documents are required:<\/p>\n\n\n\n<ul><li>PAN of Authorized\nrepresentative<\/li><li>Letter of\nauthorized representation on the letterhead of investing company<\/li><li>PAN of Investing\ncompany<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Due date for filing Form FC-GPR<\/h2>\n\n\n\n<p>There are three stages of due\ndate for filing Form FC-GPR i.e.<\/p>\n\n\n\n<ul><li>File Advance\nremittance Form(ARF) within 30 days of receipt of funds<\/li><li>Allotment needs\nto be within 180 days of receipt of share<\/li><li>Filing For FC-GPR\nwithin 30 days of allotment of shares.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Documents Required For FDI Reporting In\nIndia<\/h2>\n\n\n\n<p>Let&rsquo;s\ndiscuss the documentation part of FDI reporting under RBI for subscribing and\nallotment of shares in the investing company. This is known as FC-GPR reporting.\nReceipt of funds, before crediting funds into an account, AD\n(Authorized Dealers) bank will request for Share Capital Declaration Form by\nthe letterhead of the company.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>1. Foreign Inward Remittance Certificate<\/strong>: <\/h3>\n\n\n\n<p>A\nForeign Inward Remittance Certificate (FIRC) is a serves as proof of a foreign\ntransfer to India and is issued by the bank. The document contains information\nsuch as:<\/p>\n\n\n\n<ul><li>Name of the\nRemitter, i.e. foreign investor<\/li><li>Name of the\nremitter bank<\/li><li>Address of the\nremitter and remitter bank<\/li><li>Name of the\ncountry<\/li><li>Purpose of the remittance fund<\/li><li>Date of\nremittance<\/li><li>Amount of fund\nand conversion rate as well<\/li><li>FIRC must endorse\nby bank authority.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">2. KYC (Know your Customer) of Foreign Investor\/ Remitter:<\/h3>\n\n\n\n<p>In\nthis document, the necessary information of the remitter is included, such as:<\/p>\n\n\n\n<ul><li>Registered name\nof the Remitter\/Investor and in case of an investor, name of the individual.<\/li><li>Registration\nNumber\/Passport Number or Unique Identification number, and in case of an investor,\nnumber of the individual.<\/li><li>Registered\nAddress or Permanent address if remitter Individual.<\/li><li>Name of the remitter&rsquo;s\nBank.<\/li><li>Remitter Bank\naccount Number.<\/li><li>Period of banking\nrelationship with the remitter\/foreign investor.<\/li><\/ul>\n\n\n\n<p>Further,\nthis is issued and certified by the authorized dealer receiving bank. All the information\nprovided by the overseas remitter bank of the non-resident investor and this\ndocument, i.e. KYC, is valid for one year from the date of issue.<\/p>\n\n\n\n<p><b>Also, Read:<\/b> <mark><a href=\"https:\/\/enterslice.com\/learning\/fdi-vs-fpi\/\">FDI vs. FPI &ndash; Exhaustive Analysis of Foreign Investment<\/a><\/mark>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3.Company Secretary Certificate:<\/h3>\n\n\n\n<p>It is issued as per the Schedule I of the <strong><a href=\"https:\/\/enterslice.com\/foreign-exchange-regulations\">Foreign Exchange<\/a><\/strong> Management (Transfer or Issue of Security by a Person Resident outside India) Regulation, 2017. The Company Secretary certifies the details of Subscriber, type of security, number of shares, Issue price, the purpose of FDI, date of allotment and date of receipt of remittance. Further, the Company Secretary must check that the companies have complied with all the requirements as per the Companies Act, 2013 and followed all the terms and conditions of the government approval, if any, including FEMA compliance.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. Certificate from CA (Chartered Accountant):<\/h3>\n\n\n\n<p>This\nCertificate indicates the manner of arriving at the price of the shares. In\ncase of allotment of share, a valuation report is issued and certified by the Chartered\nAccountant.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. Appointment of Authorized Representative:<\/h3>\n\n\n\n<p>It\nis required for giving declaration and this declaration is given on the cover\nletter for submitting all the documents before the authority. The authorized\nrepresentative of the businesses is required to provide this declaration on the\nletterhead of the company.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">6. Letter for Debit Authorization:<\/h3>\n\n\n\n<p>This\nletter is for standard charges debited by bank.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">7. Declaration for Excess Amount Utilization:<\/h3>\n\n\n\n<p>This\nis required when the excess amount is received, and there are 2 option left-\nthe excess amount to be remitted back to the remitter&rsquo;s country because\nadditional money received in India has to be repatriated to the remitter. It\nshould be updated in FIRC as well, or to further utilize the amount.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">8. Incorporation documents of the investing company: <\/h2>\n\n\n\n<p>The\ncompany incorporation documents of the investing company are also required to\nfile the Form FC-GPR. These documents include MOA (Memorandum of Association),\nCOI(Certificate of Incorporation)&amp; PAN details.<\/p>\n\n\n\n<p>For\nallotment of Shares, the Indian company is also needed to convene a board\nmeeting within 180 days from the date of credit of funds and for the\nsubscription of shares, the incorporating Indian Company os required to hold a\nBoard Meeting to subscribe shares to a foreign equity investor within 30 days\nfrom the date of credit of funds. <\/p>\n\n\n\n<p>However,\nthe document as mentioned above required to be submitted along with the Form FC-GPR\nForm in RBI firm&rsquo;s portal and after providing the necessary information, the\ncompany is required to wait for the RBI&rsquo;s approval or rejection.<\/p>\n\n\n\n<p>In\ncase of any delay in filing the RBI Form FC-GPR from the date of issue of shares\nand the date of credit of funds, the company is required to submit a reason for\nthe delay on the letterhead of the company along with all the documents.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Penalty for Non-filling of Form FC-GPR<\/h2>\n\n\n\n<p>In\ncase, the resident company doesn&rsquo;t comply with the above rules of filing the\nForm FC-GPR, the RBI imposes a substantial penalty on non-compliance of\nregulations, commonly referred to as &ldquo;compounding&rdquo;.<\/p>\n\n\n\n<p>The\nreceiving company needs to complete the FDI Reporting in India by filling Form\nFC-GPR within 30 days of the above mentioned due date, and the penalty for\nnon-filling of Form FC-GPR would include:<\/p>\n\n\n\n<ol><li>INR 5000 or<\/li><li>1 % of the total amount of investment, which can up to a maximum of 5 lakh or <\/li><li>Part thereof for the first six months of delay and after that rate will be 2 times. This amount to be transferred into an RBI&rsquo;s designated bank account. <\/li><\/ol>\n\n\n\n<p><b>See Our Recommendation:<\/b> <mark><a href=\"https:\/\/enterslice.com\/learning\/foreign-direct-investment-fdi-compliance\/\">Foreign Direct Investment (FDI) Compliance Checklist<\/a><\/mark>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Foreign Direct Investment means an amount of money transferred in India by foreign investors for the purpose of holding share capital in an Indian company. Simply, FDI is an investment made by NR(Non-resident), Foreign Investor Individual, a Company or a Firm from one country to another to hold or acquire company ownership through holding a [&hellip;]<\/p>\n","protected":false},"author":39,"featured_media":29934,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1329,2218],"tags":[2853],"acf":{"service_id":"112"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Filing RBI Form FC-GPR: Procedure for FDI Reporting<\/title>\n<meta name=\"description\" content=\"The process involved in the allocation of shares to the foreign investor is known as FDI reporting of filing of RBI Form FC-GPR.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/procedure-for-foreign-direct-investment-fdi-reporting-filing-rbi-form-fc-gpr\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Filing RBI Form FC-GPR: Procedure for FDI Reporting\" \/>\n<meta property=\"og:description\" content=\"The process involved in the allocation of shares to the foreign investor is known as FDI reporting of filing of RBI Form FC-GPR.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/procedure-for-foreign-direct-investment-fdi-reporting-filing-rbi-form-fc-gpr\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2020-03-27T10:19:27+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-02-06T11:31:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/03\/Procedure-for-Foreign-Direct-InvestmentFDI-Reporting-Filing-RBI-Form-FC-GPR.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"670\" \/>\n\t<meta property=\"og:image:height\" content=\"352\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Parul Mishra","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/03\/Parul-Mishra.jpeg","authorDescription":"A Chartered Accountant and B. Com graduate, Parul is a qualified and dexterous professional, possessing extensive skills and experience in Taxation matters pertaining to Income Tax, GST, etc. She also holds in-depth knowledge of corporate compliance, finance and taxation matters, having worked in the arena for more than 4 years.","postViews":703,"readingTime":5,"nextPost":{"id":29919,"slug":"basics-of-overseas-direct-investment-investment-by-indians-abroad"},"prevPost":{"id":29907,"slug":"gst-on-legal-services-in-india-a-complete-outlook"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/03\/Procedure-for-Foreign-Direct-InvestmentFDI-Reporting-Filing-RBI-Form-FC-GPR.jpg","postTerms":"Finance Business","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/29932"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=29932"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/29932\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/29934"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=29932"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=29932"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=29932"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}