FCGPR Reporting – Everything You Must Know About FCGPR – FDI Compliance
Completely Online & Our Expert Team Ensures a Smooth Process
- Provide your Name, Email & Mobile No. and click Get Start Now
- Our Expert will call you and send you an email with list of required details/documents.
- Kindly email the requested documents to us to start the FCGPR Reporting process.
- Our Expert Team will help you to complete all your compliances done.
FCGPR Reporting – Comprehensive Guide to FCGPR – FDI Compliance
Attracting foreign investments is crucial for business growth and expansion. However, it often involves equity dilution and transfer of ownership and control to foreign entities, prompting regulatory oversight by the government. Compliance with these regulations is essential for recipients of foreign exchange receiving investments from non-residents of India. One such compliance requirement is the submission of Form FC-GPR.
What is Form FC-GPR?
Form FC-GPR, or Foreign Currency Gross Provisional Return, must be filed by a company when it allots shares to foreign investors. This filing must be made to RBI within 30 days of the share allotment.
Documents Required For Filing Form FC-GPR The following documents are necessary for filing Form FC-GPR:
- Copy of the Foreign Inward Remittance Certificate (FIRC)
- Company Secretary Certificate confirming compliance with the Companies Act, 2013
- Appointment of an authorized representative
- Valuation report by a Chartered Accountant or Merchant Banker indicating the value of issued shares to non-residents
- Board resolution approving securities allotment
- Copy of approval from the Foreign Investment Promotion Board (if applicable)
- Any other document required by RBI
- Registration of the User
- Visit the RBI’s FIRMS portal and register as a business user using the New Business User link.
- Fill in required details, attach documents, and submit the form. The AD bank will verify and notify the applicant via email.
- Upon approval, receive login credentials via email.
- Filing Form FC-GPR
- Log in to the portal using received credentials.
- Navigate to Single Master Form (SMF) under the Navigation tab.
- Choose Form FC-GPR from the return type drop-down menu and fill in details such as entry route and sectoral cap applicability.
- Provide issue details including nature, date, and initial FCGPR reference number.
- Enter foreign investment details such as investor entity nature and details.
- Specify inflow amounts and capital instrument issuance details.
- Disclose fair share values and provide the valuation certificate in the Particulars of Issue tab.
- Review equity share values and foreign investment details; confirm and submit the form.
- Penal Provisions
- Late filing of Form FC-GPR incurs a Late Submission Fee.
- Non-compliance with foreign investment receipt regulations may result in penalties, starting at 1% of the total investment amount (minimum Rs. 5000, maximum Rs. 5 lakhs per month or part thereof for the first 6 months).
FAQs
FIRC stands for Foreign Inward Remittance Certificate, confirming that a non-resident has transferred funds to India. The FIRC is issued by the appointed Authorized Dealer bank.
Pre-transaction values are automatically populated from the Entity Master. If any details are incorrect, it is necessary to verify and correct them in the Entity Master.
Form FCGPR must be filed even when issuing Preference shares and Debentures, provided they are fully and mandatorily convertible into equity shares.
FCGPR must be filed for the issuance of partly paid-up equity shares as well.
