Documents Required for Filing FCGPR
- KYC report of the remitter
- Declaration by the authorized representative
- CS Certificate confirming compliance
- Chartered Accountant/merchant banker valuation report
- FIPB approval (if applicable)
- Board Resolution for allotment of securities
- Other documents as required by RBI or AD Bank
FDI Filing with RBI: Simplified Process with Shaah Solutions
When an Indian business receives Foreign Direct Investment (FDI) and issues shares to foreign investors, it must comply with the Reserve Bank of India’s (RBI) filing requirements. This involves submitting the FCGPR (Foreign Currency and General Permission Route) form via the RBI’s online Foreign Investment Reporting and Management System (FIRMS) portal.
At Shaah Solutions, we can assist you in navigating the FDI filing process efficiently, ensuring that your business remains fully compliant with all regulatory requirements.
What is FDI Filing with RBI?
FDI filing refers to reporting foreign investments received by an Indian company to the RBI. This is mandatory for businesses that issue equity shares, compulsorily convertible preference shares, debentures, and warrants or partly-paid shares to foreign investors. The company must file the FCGPR form and submit a Company Secretary (CS) certificate to ensure compliance.
Purpose of FDI Reporting
FDI reporting ensures that investments align with India’s FDI policy. It provides transparency and facilitates the RBI and government in monitoring foreign investments, ensuring compliance with regulations.
Regulations Governing FDI Filing
FDI filing is governed primarily by the Foreign Exchange Management Act, 1999 (FEMA) and related regulations.
FDI Investment Conditions
Foreign Direct Investment (FDI) can be made through two routes:
- Automatic Route: No prior approval from RBI or the Government of India is required.
- Government Route: Prior approval is needed before making an investment.
FCGPR Form for FDI Filing
To ensure compliance, businesses must report FDI inflows by filing the FCGPR form. This form is used for equity shares, warrants, partly-paid shares, and compulsorily convertible preference shares or debentures. The form must be filed electronically on the FIRMS portal within 30 days of receiving the FDI.
When is the FC-GPR Form Required?
- Incorporation with Non-Resident Shareholders: After incorporation, a bank account should be opened, and once subscription money is received, the FCGPR form must be filed.
- Further Issue of Shares: When additional shares are issued, the FCGPR form must be submitted within 30 days of allotment.
Due Date for Filing the FCGPR Form
The FCGPR form must be filed within 30 days of the allotment of shares, compulsorily convertible preference shares (CCPS), or compulsorily convertible debentures (CCD).
Penalty for Non-Filing of FCGPR Form
Failure to file the FCGPR form within the specified time results in penalties:
- 1% of the investment amount, with a minimum penalty of INR 5,000 and a maximum of INR 5 lakhs per month for the first six months.
- After six months, the penalty increases to 2% per month until compliance is achieved.
Process for Filing the FCGPR Form
- Obtain Authorized Dealer (AD) Code: From a bank authorized by RBI.
- Register on FIRMS Portal: Create an Entity Master and register for a User ID and Password.
- Prepare the FCGPR Form: Complete the required information and attach supporting documents.
- Submission: Submit the form to the AD bank electronically within 30 days.
- Acknowledgment Receipt: After submission, an acknowledgment receipt is generated. Ensure to save this for future reference.
Simplify Your FDI Filing with Shaah Solutions
Choose Shaah Solutions for seamless FDI filing. Our expert team will guide you through the entire process, from preparing documents to timely submissions, ensuring full compliance with RBI regulations and helping you avoid penalties.