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Published on: Jul 30, 2026

Advance Remittance Form

What is Remittance? In simple terms, remittance can be explained as a letter sent by a customer to a supplier to inform the supplier that their invoice has been paid for. If the customer is paying by cheque, the remittance advice often accompanies the cheque. 

Advance Remittance Form for Investment in Company

Advance Remittance Form is used in transactions for foreign investment that comes into India in various forms. Any foreign investment into India in a company must be reported to the RBI under FEMA guidelines. For example, an Indian company which has received amount of consideration for issue of shares and where such issue is reckoned as Foreign Direct Investment for the purpose of these regulations, should report such receipt (including each upfront/ call payment) in the Advance Remittance Form to the Regional Office concerned of the Reserve Bank, not later than 30 days from the date of receipt. Advance Foreign Inward Remittance Reporting should be done within 30 days of receipt of funds from the foreign entity. In case there is a scenario where the remittance received by Indian company has to be refunded to the foreign investor, the Indian Company can also request for this refund approval through this service. After an applicant receives the UIN and acknowledgement letter, the applicant can choose to close the workflow (if there is no refund approval required) or initiate a refund approval request by submitting request letter. If the shares are not issued within sixty days from the date of receipt of the consideration the money received should be refunded to the person concerned by outward remittance through banking channels or by credit to his NRE/ FCNR(B) accounts, as the case may be within fifteen days from the date of completion of sixty days. Prior approval of the Reserve Bank would be required for payment of interest, if any, as laid down in the Companies Act, 2013, for delay in refund of the amount so received. In effect, the remittance can be refunded within 75 days from the date of remittance without any approval from RBI. Any refund, post 75 days would invite payment of interest, as per the Companies Act, and would require prior approval of RBI.

Advance Remittance Form Sample

A sample Advance Remittance Form is reproduced below for reference.

Click here to download Advance Remittance Form.
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Frequently Asked Questions

Common questions about Advance Remittance Form for Foreign Investment in India.

An Advance Remittance Form is a document that needs to be submitted to the Reserve Bank of India (RBI) by an Indian company that has received foreign investment in the form of consideration for issuing shares. This form should be filed within 30 days of receiving the funds, as per FEMA guidelines.
Reporting foreign investment through the Advance Remittance Form is mandatory under FEMA guidelines. It helps the RBI keep track of foreign direct investment (FDI) inflows into the country and monitor compliance with applicable regulations.
If the shares are not issued within 60 days of receiving the foreign investment, the Indian company must refund the money to the foreign investor within 15 days after the 60-day period ends. This refund can be made through outward remittance or by crediting the investor's NRE/FCNR(B) account.
No RBI approval is required for refunding the foreign investment within 75 days from the date of remittance. However, if the refund is made after 75 days, the Indian company may need to pay interest as per the Companies Act, 2013, and obtain prior approval from the RBI.
An Indian company must report the foreign investment by filing the Advance Remittance Form with the concerned RBI Regional Office within 30 days from the date of receiving the funds.
The Advance Remittance Form typically requires details such as the name of the Indian company, the foreign investor, the amount of foreign investment received, the date of receipt, and the purpose of the investment (e.g., issue of shares).
Yes, the RBI has prescribed a specific format for the Advance Remittance Form, which can be downloaded from their website or other authorized sources.
Failure to file the Advance Remittance Form within 30 days of receiving the foreign investment may be considered a violation of FEMA regulations and could potentially lead to penalties or other consequences.
The Advance Remittance Form is specifically required for reporting foreign direct investment (FDI) in the form of consideration for issuing shares. However, similar reporting requirements may apply for other types of foreign investment as well, depending on the specific regulations and guidelines.