{"id":6557,"date":"2020-04-11T10:52:40","date_gmt":"2020-04-11T05:22:40","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=6557"},"modified":"2020-11-18T18:03:43","modified_gmt":"2020-11-18T12:33:43","slug":"fc-gpr-form-reporting-with-rbi-for-foreign-direct-investment","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/fc-gpr-form-reporting-with-rbi-for-foreign-direct-investment\/","title":{"rendered":"FC-GPR Form &#8211; Reporting with RBI for Foreign Direct Investment"},"content":{"rendered":"\n<p class=\"has-drop-cap\">When a company receives foreign direct investment (FDI) through capital Investment, the Company allots shares to the foreign investor for this, and there is a mandatory requirement for the reporting with RBI (Reserve Bank of India), which is to be done in form FC-GPR. It is a type of form which is issued by <strong><em>RBI under the Foreign Exchange Management Act, 1999<\/em><\/strong><sup><strong><em><a href=\"https:\/\/www.rbi.org.in\/scripts\/Fema.aspx\">[1]<\/a><\/em><\/strong><\/sup>, and can be availed only after getting approval of <a href=\"https:\/\/corpbiz.io\/company-registration\"><strong>Company Registration<\/strong><\/a> with due process. <\/p>\n\n\n\n<p><strong>On\n7<sup>th<\/sup> June 2018, RBI, by its notification, introduced a new reporting\nframework, an online reporting platform, FIRMS<\/strong>\n(Foreign Investment Reporting and Management System), for reporting of foreign\ninvestment by Indian entities (including companies, LLP and startups) in SMF\n(Single Master Form). <\/p>\n\n\n\n<p><strong><em>The new e-filing portal\nFIRMS at the moment facilitates filing of following transactions:<\/em><\/strong><\/p>\n\n\n\n<ul><li>Reporting of FDI into companies<\/li><li>Reporting of FDI into LLP<\/li><li>Transfer of share\/capital in companies \/ LLP between resident and non-resident<\/li><li>Issue\/transfer of convertible notes.<\/li><\/ul>\n\n\n\n<p>\u201c<strong>Foreign Direct Investment\u201d<\/strong> (FDI) means investment through capital\ninstruments by a person resident outside India in an unlisted Indian company,\nor in 10 percent or more of the post issue of paid-up equity capital on a fully\ndiluted basis of a listed Indian company;&nbsp;\n<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/fc-gpr-form-reporting-with-rbi-for-foreign-direct-investment\/#FDI_Reporting_to_RBI_with_Form_FC-GPR\" >FDI\nReporting to RBI with Form FC-GPR<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/fc-gpr-form-reporting-with-rbi-for-foreign-direct-investment\/#When_FC-GPR_Form_is_required_to_be_filed\" >When\nFC-GPR Form is required to be filed?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/fc-gpr-form-reporting-with-rbi-for-foreign-direct-investment\/#What_are_the_Steps_for_filing_form_FC-GPR_with_RBI\" >What\nare the Steps for filing form FC-GPR with RBI?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/fc-gpr-form-reporting-with-rbi-for-foreign-direct-investment\/#Penalty_for_Non-filing_of_Form_FC-GPR_with_RBI\" >Penalty\nfor Non-filing of Form FC-GPR with RBI:<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FDI_Reporting_to_RBI_with_Form_FC-GPR\"><\/span><strong>FDI\nReporting to RBI with Form FC-GPR<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Foreign\ncurrency Gross provisional Return (FC-GPR<\/strong>) is a form in which\na company requires to submit with RBI for reporting of the issue of eligible\ninstruments to the overseas investor against any FDI inflow with an e-Biz\nportal (https:\/\/www.ebiz.gov.in\/) of Government of India. <\/p>\n\n\n\n<p><strong><em>FDI under various sectors is permitted under 2 Routes:<\/em><\/strong><\/p>\n\n\n\n<ul><li>AUTOMATIC ROUTE<\/li><li>GOVERNMENT ROUT<\/li><\/ul>\n\n\n\n<ol><li><strong><em>Automatic Route:<\/em><\/strong><em> Under this route, no prior approval is required by non-resident or Indian companies from RBI or Government of India before investing in the Company.<\/em><\/li><li><strong><em>Government Route:<\/em><\/strong><em> Under this route, prior approval is required either by the Government of India before investing in the Company.<\/em><\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"When_FC-GPR_Form_is_required_to_be_filed\"><\/span><strong>When\nFC-GPR Form is required to be filed?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Below mentioned are the\ncases when FC-GPR form is required to be filed;<\/em><\/strong><\/p>\n\n\n\n<ul><li><strong>In\nthe case of incorporation if Shareholder is non-resident:<\/strong> <\/li><\/ul>\n\n\n\n<p>After incorporation, the Company needs to open a Bank Account. After subscription money received in the Bank Account, there is a need for reporting with RBI in FC-GPR form.<\/p>\n\n\n\n<p>Under FEMA, in case of\nnewly incorporated companies, there is no timeline for bringing in the\nSubscription money whereas,<\/p>\n\n\n\n<p>Under the Companies Act\n2013, there is a mandatory requirement for the subscribers to bring in\nsubscription amount in 180 days from the date of incorporation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Further issue of Shares<\/strong>: <\/h3>\n\n\n\n<p><em>Only\nthe following Securities considered under FDI (Foreign Direct Investment):<\/em><\/p>\n\n\n\n<p>In case Share Application\nmoney is received, shares required to be allotted in 60 days from the date of\nreceipt of application money. As soon as shares are allotted, there is a need\nfor reporting with RBI in FC-GPR form within 30 days of allotment. <\/p>\n\n\n\n<ul><li><em>Equity Shares<\/em><\/li><li><em>Convertible Preference Shares<\/em><\/li><li><em>Convertible Debentures<\/em><\/li><\/ul>\n\n\n\n<p><em>Investment\nin any other instrument shall be treated as borrowings and need to fulfill ECB\nrequirements.<\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Conditions Required:<\/h3>\n\n\n\n<p>Below mentioned are some conditions which should meet for FDI:<\/p>\n\n\n\n<ul><li>Foreign\nDirect Investment must be compliant with the FDI policy.<\/li><li> Securities issued must be under the Foreign Exchange Management. <\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Documents Required:<\/h3>\n\n\n\n<p><strong><em>Below mentioned are the documents required for filing\nFC-GPR form;<\/em><\/strong><\/p>\n\n\n\n<ul><li>Copy\nof FIRC (Foreign Inward Remittance Certificate)<\/li><li>Copy\nof KYC (Know your customer) report for the beneficiary if the beneficiary and\nremitter are different entities.<\/li><li>CS\nCertificate: Certificate from Company Secretary that all the requirements have\nbeen complied with as per Companies Act, 2013.<\/li><li>Valuation\nReport by Chartered Accountant \/ Merchant Banker- Certificate from Chartered\nAccountant or Merchant Banker, shall Indicate the manner of arriving at a price\nof the shares issued to the person resident outside India:<\/li><li>Copy\nof FIPB approval (if required);<\/li><li>Board\nresolution for the Allotment of Securities;<\/li><li>Appointment\nof Authorised Representative;<\/li><li>Letter\nof Debit Authorization;<\/li><li>Reason\nfor any delay in submission, if required;<\/li><\/ul>\n\n\n\n<p>The RBI (Reserve Bank of\nIndia) or AD Bank may ask any other documents if required.<\/p>\n\n\n\n<p>Once all the above\ndocuments received, form FC-GPR to be filed.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Steps_for_filing_form_FC-GPR_with_RBI\"><\/span><strong>What\nare the Steps for filing form FC-GPR with RBI?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Below are the Steps for\nfiling form FC-GPR with RBI: <\/p>\n\n\n\n<ul><li><strong>Registration\nfor Business User:<\/strong><\/li><\/ul>\n\n\n\n<p><strong>Step 1: <\/strong>For registering as a business user, go to the FIRMS website. <\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" width=\"612\" height=\"346\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/04\/image-33.png\" alt=\"Registration for Business User\" class=\"wp-image-6560\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/04\/image-33.png 612w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/04\/image-33-300x170.png 300w\" sizes=\"(max-width: 612px) 100vw, 612px\" \/><\/figure>\n\n\n\n<p><strong>Step 2:<\/strong> At the Login box, you need to click on the Registration form with <strong>New Business User<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" width=\"624\" height=\"383\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/04\/image-34.png\" alt=\"Registration form with New Business User\" class=\"wp-image-6561\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/04\/image-34.png 624w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/04\/image-34-300x184.png 300w\" sizes=\"(max-width: 624px) 100vw, 624px\" \/><\/figure>\n\n\n\n<p><strong>Step\n3:&nbsp; <\/strong>Fill up\nthe details under New Business user : <\/p>\n\n\n\n<ul><li>Name<\/li><li>User\nname (which should be unique)<\/li><li>Email\naddress<\/li><li>Phone\nno.<\/li><li>Address<\/li><li>IFSC\nCode of the Bank branch with whom the reporting would be made.<\/li><li>Bank\nname<\/li><li>Authority\nletter as an attachment<\/li><li>Company\nCIN\/LLPIN<\/li><li>PAN\nNumber<\/li><li>Entity\nname<\/li><\/ul>\n\n\n\n<p><strong>Step 4:<\/strong> Click the Submit\nbutton, if any error is displayed then rectify the same and Submit the same.<\/p>\n\n\n\n<p><strong>Step 5:<\/strong> A Message\n&#8220;Record Saved Successfully&#8221; is displayed on top of the Login box. <\/p>\n\n\n\n<p>AD\nBank Branch will verify the same. Approval communicated with the Email\nnotification with the Business user.<\/p>\n\n\n\n<ul><li><strong>Logging into Firms:<\/strong><\/li><\/ul>\n\n\n\n<p><strong>Step 1:<\/strong> Go to the FIRMS website.<\/p>\n\n\n\n<p><strong>Step 2:<\/strong> User Name and the Default password is received via Email, <\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" width=\"573\" height=\"325\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/04\/image-35.png\" alt=\"Logging into Firms\" class=\"wp-image-6562\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/04\/image-35.png 573w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/04\/image-35-300x170.png 300w\" sizes=\"(max-width: 573px) 100vw, 573px\" \/><\/figure>\n\n\n\n<p><strong>Step 3: <\/strong>Business users can set a new password.<\/p>\n\n\n\n<p><strong>Step 4:<\/strong>&nbsp;After Logging in to FIRMS, it will create a workplace<\/p>\n\n\n\n<ul><li><strong>Form Filling and submission<\/strong><\/li><\/ul>\n\n\n\n<p><strong>Step\n1: <\/strong>After completing the submission process for the form\nof registration of the new business user, you need to login to the firms into\nSMF and reach your workspace.<\/p>\n\n\n\n<p><strong>Step 2: <\/strong>Select the Return\ntype- Select FC-GPR, the user will be taken to the form FC-GPR.<\/p>\n\n\n\n<p><strong>Step 3:<\/strong> Fill the Common\nInvestment details. <\/p>\n\n\n\n<ul><li>These\ndetails are common with all the returns that can be reported in SMF in FC-GPR\nform fill up the standard investment details such as shareholding pattern, date\nof issue of shares, etc.<\/li><\/ul>\n\n\n\n<p><strong>Step 4:<\/strong>  <strong>Issue Details<\/strong> <\/p>\n\n\n\n<ul><li>Issue\ndetails likewise Date of Issue, Nature, and Initial FC-GPR Reference No. in\ncase of subsequent filing.<\/li><\/ul>\n\n\n\n<p><strong>Foreign Investment\nDetails<\/strong><\/p>\n\n\n\n<ul><li>Foreign\ninvestor\u2019s details such as Number of investors General details like Name\nAddress Country of residence, Constitution\/nature of the investing entity, etc.\nare required to be filled.<\/li><\/ul>\n\n\n\n<p><strong>&nbsp;Amount of Issue<\/strong><\/p>\n\n\n\n<ul><li>Fill\nthe total amount of inflow and the total amount for which the capital\ninstruments have been issued.<\/li><\/ul>\n\n\n\n<p><strong>&nbsp;Particulars of Issue<\/strong><\/p>\n\n\n\n<p><strong>Shareholding\nPattern<\/strong><\/p>\n\n\n\n<ul><li>Business\nusers should ensure that details are correctly filled.<\/li><\/ul>\n\n\n\n<p><strong>Submitting the Form<\/strong><\/p>\n\n\n\n<ul><li>After\nfilling all the details, save and submit the form. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Penalty_for_Non-filing_of_Form_FC-GPR_with_RBI\"><\/span><strong>Penalty\nfor Non-filing of Form FC-GPR with RBI: <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Any delay in reporting beyond the prescribed period shall attract a penalty :<\/p>\n\n\n\n<ul><li>percent of the total amount of investment subject to a minimum of Rupees Five Thousand and maximum of Rupees Five Lakhs per month or part thereof for the first six months of delay and twice that rate thereafter,<\/li><\/ul>\n\n\n\n<p>It is to be paid online into a designated account in RBI.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/growth-and-quality-of-fdi\/\">Growth and Quality of FDI: Are all FDI Equal?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When a company receives foreign direct investment (FDI) through capital Investment, the Company allots shares to the foreign investor for this, and there is a mandatory requirement for the reporting with RBI (Reserve Bank of India), which is to be done in form FC-GPR. It is a type of form which is issued by RBI [&hellip;]<\/p>\n","protected":false},"author":14,"featured_media":6564,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[415,120],"tags":[477],"acf":{"service_id":"321"},"authorName":"Priya Tirthani","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/02\/Priya-Tirthani.jpg","authorDescription":"Ms. Priya Tirthani is a Company Secretary working as a Senior Consultant in Corpbiz.She is having 4 years of Post Qualification Experience in Compliance and Audit.","postViews":29474,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/6557"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=6557"}],"version-history":[{"count":32,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/6557\/revisions"}],"predecessor-version":[{"id":19760,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/6557\/revisions\/19760"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/6564"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=6557"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=6557"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=6557"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}