IndiaFilings offers professional services to help businesses with the Foreign Direct Investment (FDI) filing process with the Reserve Bank of India (RBI) through its online reporting portal known as the Foreign Investment Reporting and Management System (FIRMS) portal.
Our service includes filing the Foreign Currency and General Permission Route (FCGPR) form and a Company Secretary (CS) certificate, a mandatory requirement for companies receiving foreign investments.
We understand that compliance with FDI regulations can be complex and time-consuming. With IndiaFilings, businesses can rely on our expertise and experience to ensure that the FDI filing process is efficient, smooth, and compliant with all regulatory requirements.
At IndiaFilings, we believe in delivering high-quality services that are timely, efficient, and cost-effective. Our FDI filing services with the RBI's FIRMS portal are designed to meet the unique needs of businesses of all sizes and industries.
Contact our experts today to learn more about our FDI filing services through the FIRMS portal and how we can help your business comply with all regulatory requirements related to FDI.
Foreign Direct Investment (FDI) filing with the Reserve Bank of India (RBI) refers to reporting the inflow of foreign investment in an Indian company to the RBI. This reporting is mandatory for Indian companies that receive foreign investments in equity shares, compulsorily convertible preference shares or debentures, and warrants or partly-paid shares. The reporting process involves submitting the Foreign Currency and General Permission Route (FCGPR) form and a Company Secretary (CS) certificate.
The regulations applicable to Foreign Direct Investment (FDI) filing with the Reserve Bank of India (RBI) are primarily governed by the Foreign Exchange Management Act, 1999 (FEMA) and its regulations.
Foreign Direct Investment is an investment made by a foreign company or individual in an Indian company. FDI is a crucial component of India's economic growth and development. It brings capital, technology, and expertise into the country, which can help improve the domestic economy and create jobs.
FDI is permitted fewer than two routes in various sectors:
To ensure that foreign investments are in compliance with the FDI policy and regulations, the Reserve Bank of India (RBI) has mandated that all FDI inflows in India must be reported to the RBI through the Foreign Currency and General Permission Route (FCGPR) form. The FCGPR form is used to report the receipt of foreign investments in the form of equity shares, warrants, or partly-paid shares and compulsorily convertible preference shares or debentures.
The FCGPR form must be filed electronically on the RBI's online reporting portal (FIRMS) within 30 days of the receipt of the FDI.
The FIRM's portal can be accessed through the RBI's website, and businesses are required to create an Entity Master and register themselves on the portal before filing the FCGPR form electronically.
The FC-GPR form needs to be filed in the following cases:
Form FCGPR must be filed within 30 days of allotment of shares / Compulsorily Convertible Preference Shares (CCPS)/ Compulsorily Convertible Debentures (CCD).
The following documents are required for filing the FC-GPR form:
A company will be penalized if it fails to file the FC-GPR form within the prescribed timeline. The penalty for delay in reporting is 1% of the total investment amount, subject to a minimum of INR 5,000 and a maximum of INR 5 lakhs per month or part thereof for the first six months of delay. After six months, the penalty rate doubles to 2% per month until non-compliance is rectified. The penalty must be paid online into a designated account in RBI. It is, therefore, important for companies to ensure that they file the FC-GPR form within the stipulated time to avoid any penalties.
Filing Foreign Direct Investment (FDI) with the Reserve Bank of India (RBI) using Form FC-GPR involves several steps.
Obtain Authorized Dealer (AD) Code: The first step is to obtain an Authorized Dealer (AD) Code from a bank authorized by the RBI. The AD bank acts as an intermediary between the company and the RBI and verifies the information provided in the FCGPR form.
Registration of Entity User on Firms Portal:The Indian company must register as an Entity User on the RBI's online reporting portal (Firms Portal). The company must provide its details and obtain a User ID and Password.
Creation of Entity Master:Once registered on the Firms Portal, the company must create an Entity Master by providing details such as name, address, PAN, TAN, and other relevant information.
Registration for Business Users on Firms Portal:After creating the Entity Master, the company must register the Business Users authorized to access the Firms Portal and submit the FCGPR form. The Business Users must provide their details and obtain a User ID and Password.
Preparation of Form FC-GPR:After obtaining the AD Code, the company must prepare the FCGPR form in the required format. The form can be accessed on the RBI's online reporting portal.
Provide Relevant Information:The company must provide relevant information in the FCGPR form, including the details of the foreign investor, the amount and type of investment, and the percentage of equity held by the foreign investor. The company must also provide information on the sector where the investment is made and any other relevant details per the guidelines.
Signing and Certification:The FCGPR form must be signed and certified by the company's authorized signatory and the AD bank's authorized signatory. The certification must confirm the accuracy and completeness of the form's information.
Reporting of FDI Received: The Indian company must report the receipt of FDI within 30 days of receipt using Form FC-GPR on the Firms Portal. The FCGPR form must be duly filled, signed, and certified by the company's and AD bank's authorized signatory. The company must also upload the required documents, such as the Foreign Inward Remittance Certificate (FIRC) and the KYC documents of the foreign investor.
Submission of Form:Once the FCGPR form is duly completed and certified, it must be submitted to the AD bank electronically on the RBI's online reporting portal within 30 days of receiving the FDI.
Acknowledgment Receipt:After submission of the FCGPR form, the Firms Portal generates an acknowledgment receipt. The company must download and save the acknowledgment receipt for future reference.
Follow-up:The Company must follow up with the AD bank to ensure that the RBI has accepted the FCGPR form. The company must promptly address any discrepancies or clarifications if the RBI seeks any differences or clarifications.
IndiaFilings is a platform that provides professional services to businesses and individuals in India. They offer various services related to company incorporation, compliance, tax filings, and more. IndiaFilings can help businesses with the FDI filing process with the RBI in the following ways:
Obtain AD Code:IndiaFilings can help companies obtain an AD Code from an authorized bank.
Entity Master Creation:IndiaFilings can help companies create an Entity Master on the RBI's online reporting portal.
Business User Registration:IndiaFilings can assist in registering Business Users who will be authorized to access the Firms Portal and submit the FCGPR form.
Preparation and Review of FCGPR Form:IndiaFilings can help companies prepare and review the FCGPR form to ensure that all the required information is provided accurately and in the required format.
Submission of FCGPR Form:IndiaFilings can assist in submitting the FCGPR form to the AD bank electronically on the RBI's online reporting portal.
Follow-up:IndiaFilings can follow up with the AD bank to ensure that the RBI has accepted the FCGPR form and to address any discrepancies or clarifications sought by the RBI.
In addition to the above, IndiaFilings can also provide advisory services on the various regulations related to FDI and other compliance requirements. We can also help businesses with various other regulatory filings and compliance requirements.
Many small businesses pay lakhs in penalty every year to the Government for late filing various statutory returns. Such penalty or late fee paid is not tax deductible and is a drain on profitability. At IndiaFilings, our mission is to provide the most affordable services to our customers and help them avoid all late fee.To achieve our mission - we have built enterprise grade technology to help you proactively know the upcoming compliance and avoid penalty.Checkout our compliance services below, talk to an Advisor and stop paying unwanted late fees.
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Last updated: May 04, 2023
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FDI filing with RBI FAQ's
What is FDI filing with RBI?
What is the purpose of FDI filing with RBI?
Who is required to file for FDI with RBI?
What is the format for FDI reporting to RBI?
What is the timeline for FDI filing with RBI?
What information is required to be submitted for FDI filing with RBI?
Is there any fee for FDI filing with RBI?
Can FDI filing with RBI be done online?
What are the consequences of non-compliance with FDI filing with RBI?
Is there any limit on the amount of FDI an Indian company can receive?
What is the difference between automatic and government routes for FDI?
What are the sectors where Foriegn Direct Investment is not allowed in India?
Can FDI be repatriated from India?
Can FDI be transferred to another company in India?
What is the penalty for non-reporting of FDI with RBI?
What is the procedure for the correction of FDI data submitted to RBI?
What is the timeline for the correction of FDI data submitted to RBI?
What is FC-GPR?
What is the due date to file Form FC-GPR?
What are the Applicable Regulations for filing FC-GPR?