Foreign investment can create RBI reporting obligations. Use this guide to understand the common FC-GPR and FLA rules, then confirm applicability with a qualified professional.
Critical Filings
Mandatory reporting to the Reserve Bank of India upon allotment of equity, CCPS, or debentures to non-resident investors (foreign VCs, angels, incubators).
Annual reporting of all foreign liabilities and assets. Mandatory for every Indian company that has received foreign investment at any point in its history.
Foreign-investment reporting is fact-specific. Before a transaction, retain investment records, board approvals, banking evidence, and valuation material, and have a qualified professional confirm the applicable FEMA filings and deadlines.
Coverage Enquiries
LanceIQ currently provides MCA and GST monitoring. Contact us to discuss FEMA requirements and available partner-professional support for your company.
Keep the board approval, investment instrument, and issue date so a professional can assess the FC-GPR timeline.
The applicable documents can include banking, valuation, and corporate records. A professional should confirm the required set.
A qualified professional should assess the entry route, sectoral conditions, valuation, and reporting requirements.
Keep portal acknowledgements and supporting documents with the company records after a professional completes the filing.
FAQ
Form FC-GPR is a reporting form under the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 for applicable issues of equity instruments to a person resident outside India. It is generally required not later than 30 days from the date of issue. The investment route, instrument, valuation, and documents must be confirmed professionally.
Filing Form FC-GPR requires: (1) Foreign Inward Remittance Certificate (FIRC) / KYC issued by the Authorised Dealer (AD) Bank confirming receipt of foreign funds, (2) Valuation Certificate prepared by a SEBI registered Merchant Banker or practicing Chartered Accountant using the Discounted Free Cash Flow (DCF) method, (3) CS Certificate confirming compliance with entry routes, sectoral caps, and FDI policy, (4) Board Resolution authorizing allotment, and (5) Form PAS-3 filed with the MCA.
The Annual Return on Foreign Liabilities and Assets (FLA Return) applies to Indian companies and LLPs with outstanding foreign assets or liabilities as at the end of March, subject to RBI's current criteria. It is generally due by 15 July and reports the relevant foreign assets and liabilities as at 31 March.
FLA applicability depends on the company's foreign assets and liabilities as at the end of March. A company should retain the underlying investment and financial information and ask a qualified professional to confirm whether reporting is required.
Section 13 of FEMA sets out penalties for contraventions, including up to three times the sum involved where quantifiable, or up to ₹2 lakh where it is not quantifiable, with a continuing penalty provision. The applicable process, late-submission fee, or compounding outcome depends on the facts and current RBI rules.
LanceIQ currently provides MCA and GST monitoring. Contact us to discuss your FEMA requirements and available partner-professional support.