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Alankar Mishra

November 20, 2024

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Filing Procedure Of Form FC-GPR

All Indian corporations seeking Foreign Direct Investment (FDI) are required by the provisions of Foreign Exchange Management Act (FEMA) regulations to submit Form FC-GPR which stands for foreign currency gross provisional return. This document is useful to foreign investors to record the funds which were expended in buying the shares and other securities issued to them. In India, however, all companies are legally required to submit Form FC-GPR to the Reserve Bank of India (RBI). There’s more to follow. The steps needed to File Form FC GPR are as follows.

Step 1: Register on the FIRMS Portal

Visit the FIRMS (Foreign Investment Reporting and Management System) portal on the RBI’s website.

Create an account if you’re a new user, or log in with existing credentials.

Fill in the basic details required for registration, including company name, contact details, and authorized user information. Once verified, you can access the FIRM's portal for filing.

Step 2: Add Entity Details

Enter the Entity Identification Number (EIN) or, if it’s the first time registering, provide the Corporate Identification Number (CIN) and other details such as PAN.

Once registered, you’ll receive a unique identifier, allowing you to file various forms, including FC-GPR, for that entity.

Step 3: Start the Form FC-GPR Filing Process

Under the Single Master Form (SMF), you should select Form FC-GPR from the list.

Indicate the purpose of reporting for example shares are being issued against incoming FDI.

Explain the transaction including the type of issue made for example whether it was equity shares or preference shares, how much investment has been received and what currency the investment is in.

Step 4: Fill in the Investment Details

Provide the complete particulars of the foreign investor(s) such as the name, address and country of residence.

Indicate the amount received as well as the date of receipt of funds to the company’s account.

Indicate the method of payment used, for instance, inward remittance, NRE/FCNR account and note the provisions of FEMA regarding these.

Step 5: Share Allocation and Pricing Details

List what kind of shares were issued (if any, equities, and compulsory convertible debentures) and their respective price per share.

Provide a valuation certificate which verifies the share price (as the RBI expects) and is approved by a CA or registered merchant banker at SEBI.

Provide information relating to the capital of the company, its members, and the issued shares which were foreign-owned equity on the issuance of the shares.

Step 6: Attach Required Documents

Please submit the following important documents:

KYC report of the foreign investor with an overseas bank.

Board Resolution for the share’s issuance.

FIRC (Foreign Inward Remittance Certificate) from banks confirming the receipt of funds.

Any other document related to the transaction may be needed by RBI.

Step 7: Submit and Track the Filing

Before proceeding, ensure that every given detail and attached record is accurate and authentic.

After this, the fill-out form must be submitted to an Official Dealer (AD) bank which will review and operate that form before it is sent to the RBI.

Watch the progress of your application through the FIRM portal and check whether the AD bank and the RBI have made further requests for information.

Step 8: RBI Approval and Confirmation

The filing will be completed by RBI after the AD bank makes the approval and review. The status on the FIRMS portal will be changed to ‘accepted’ thus, indicating adherence with the FDI and sectoral caps.

Conclusion

For Indian corporates that are receiving foreign direct investment, completing Form FC-GPR is an important step. By submitting this form, FEMA requirements are satisfied and the reporting of FDI transactions is undertaken correctly. Completion of these procedures and having papers prepared assists companies in filing since the process is proper and compliance is avoided. Adhering to this approach and requesting expert help whenever necessary will simplify the process of submitting FC-GPR forms even more and will allow it by the rules established by the RBI.

‍FAQs

1. What is the full form of FC-GPR?

The complete form of FC-GPR is Foreign Currency – Gross Provisional Return. It is a type of form used to declare the allotment of shares to foreigners as per the Foreign Exchange Management Act (FEMA).

2. What is the due date for FC-GPR filing?

The due date on an FC-GPR filing is 30 days from the date of the issue of shares or securities to non-residents.

3. What documents are required for FC-GPR filing?

The following documents, among others, are critical when filing the FC-GPR:

Foreign Inward Remittance Certificate (FIRC).

KYC report from the foreign investor’s bank.

A resolution of the local board which supports the allotment of shares.

Valuation report by Chartered Accountant or SEBI registered merchant banker.

The certificate of shares allotted to foreign investors.

4. What is the purpose of FC-GPR filing?

The FC-GPR filing serves as a report for the issue of shares to foreign investors, thus complying with FEMA laws and addressing the needs of the RBI in terms of supervision of foreign investments in India.

5. What happens if FC-GPR is not filed on time?

Penalties under FEMA might arise due to a delay in the filing of FC-GPR. Compliance is mandatory for the last date of FC-GPR filing to ensure its effectiveness.

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