All you need to know about FC-GPR Filing

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All you need to know about FC-GPR Filing

When a company receives foreign investment, the Reserve Bank of India (RBI) issues Form FC-GPR. As a result of such investment, the business could issue shares to a foreign investor. Furthermore, the company is required to file specifics of such share allotment using Form FC-GPR.

Table of Contents

The objective of Form FC-GPR

The transaction is reported in Form FC-GPR is for the issue of capital instruments by an Indian Company to a person resident outside India, i.e., allotment of Equity shares/Compulsorily Convertible Preference Shares/Compulsorily Convertible Debentures, whether at the time of the Company’s incorporation or after its incorporation.

The Foreign Investment is subject to the Consolidated FDI Policy (relating to sectoral caps and whether admittance is through an automatic or approval route, pricing guidelines, and so on); and the securities issued are in accordance with the provisions of the Foreign Exchange Management Act, 1999, the Companies Act, 2013, and the SEBI Regulations, as well as other applicable laws and rules made thereunder.

Requirements for filing FC-GPR Form 

Any company with foreign investment must report to the RBI. The following are the conditions that must be met in the case of FDI-

FDI Process and Documents

  • Money Transmission:
    • Through normal banking channels, inward remittances.
    • By debiting the person’s NRE/FCNR account held with an authorised dealer.
  • Preliminary Documents: 
    • FIRC copies and a KYC report are issued by the non-resident investor’s authorised dealer bank.
    • If funds are received from an NRE account, the bank will issue an NRE letter instead of a FIRC.
  • Deadline for filing: The transaction must be reported within 30 days of the date of allotment by the Investee Company issuing its securities to the non-resident investor.

Procedure of FC-GPR Filing 

  • Registration: 
    • Any applicant reporting a transaction to the RBI can use the login credentials that have been granted to him/her to do so.
    • To register as a new business user, the applicant must go to the firm’s official website.
    • Click on the registration for new business user link and fill out the form with your information.
    • After filling out the details, the business user must submit the registration form, which will be verified by the concerned authorised dealer bank branch. The business user would be notified via email if the proposal was rejected or approved.
    • The Reserve Bank of India (RBI) issues Form FC-GPR when a company receives foreign investment and allots shares to a foreign investor in exchange for such investment. The company is required to file details of such allotment of shares using Form FC-GPR.

  • Log in to the companies: To access the firms, the applicant must enter the user name and password received via email. After logging into the FIRMS, you will be able to leave your workplace.
  •  Access the Single Master Form (SMF): After completing the registration process as a new user, you will be able to access your workspace by logging into the firms and SMF.
  • Select a return type- Form FC GPR: Click on Return type to view the various types of forms and then select Form FC GPR, where the details such as CIN, PAN number, Company name, and so on are pre-filled. While some details must be entered by hand.
  • Investment Specifics: Now, investment details such as shareholding pattern and date of issue of shares, among other things, must be reported in the Single Master Form (Form FC-GPR).
  • Issue Specifics: Details such as the nature of the issue, the date of issue, and the initial FC-GRP reference number must be provided in the event of a subsequent filing.
  • Foreign Investment Information:Details about foreign investments, such as the number of investors, address of residence, constitution, and nature of the investing entity.
  • The Size of the Problem: Fill in the total amount of inflows and the total amount of capital instruments issued.
  • Issue Specifics: Fill in the fair value of the issue in rupees based on the valuation certificate issued by the authorised person, as well as the attachment as a valuation certificate.
  • Pattern of Shareholding
    • Under the option shareholding, the value of equity shares and the indirect foreign investment value of equity shares will be displayed.
    • Furthermore, pre-transaction and post-transaction values are calculated automatically based on the information entered into the form.
    • The user is then required to ensure that the details provided are filled correctly in order for the auto-calculated shareholding pattern to be correct.
  • Form Submission:After filling out the required information, click the save and submit button to submit the form.

Requirements for Post FC-GPR Filling

It is critical that the securities are allotted within 60 days of the application money being received. Furthermore, following the filing of the FC GPR, share certificates will be issued and the Register of Members will be updated.

RBI Compliances in Jaipur Rajasthan

Conclusion

The Reserve Bank recently launched FIRMS (Foreign Investment Reporting and Management System), an online application that allows the reporting of 9 forms for foreign investment, including FC-GPR, FC-TRS, LLP-I, LLP-II, CN, DRR, ESOP, DI, and InVi.

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