What is FEMA compliance?

It is the legal requirement to report and manage foreign exchange transactions in India as per RBI rules.

It is the form used to report the issuance of shares by an Indian company to a person resident outside India.

What is the time limit for filing FC-GPR?

It must be filed within 30 days from the date of the allotment of shares.

What is the FLA Return?

FLA (Foreign Liabilities and Assets) is an annual return to be filed by companies that have received FDI or made ODI.

What happens if I delay the filing?

Delayed filing attracts Late Submission Fees (LSF) or may require 'Compounding' with the RBI.

What is a Valuation Certificate?

It is a report from a CA proving that the shares were issued at a price not less than the fair market value.

Who is an 'Authorized Dealer'?

An Authorized Dealer (AD) is usually a bank authorized by the RBI to handle foreign exchange transactions.

Can a foreign national start an LLP?

Yes, but subject to specific FDI conditions and reporting requirements under FEMA.

Service

FEMA & RBI Compliance India | FC-GPR Filing Online

Expert assistance for foreign investment reporting. We handle FC-GPR filing, FLA returns, and FEMA advisory for inbound and outbound investments.

Navigating Foreign Exchange Regulations

Expert assistance for foreign investment reporting. We handle FC-GPR filing, FLA returns, and FEMA advisory for inbound and outbound investments.

Manage foreign investment compliance in India. File FC-GPR and other mandatory RBI reports for foreign direct investment (FDI) under FEMA regulations.

Global capital, local compliance. Ensure your foreign investments are reported accurately to the RBI to avoid heavy compounding penalties under FEMA.

Foreign investment in India is governed by the Foreign Exchange Management Act (FEMA). Any Indian company receiving funds from a non-resident must report the transaction to the Reserve Bank of India (RBI). This ensures that the investment complies with the sector-specific FDI limits and valuation norms.

The reporting process has been modernized through the FIRMS (Foreign Investment Reporting and Management System) portal. The primary reporting form for the issuance of shares to a foreign investor is FC-GPR (Foreign Collaboration - General Permission Route). This must be filed within 30 days of the allotment of shares.

QuickTaxperts provides specialized FEMA consulting, helping companies manage the influx of foreign capital, from inward remittance certificates (FIRC) to final share allotment and RBI reporting.

Category: Compliance
Covers specialized reporting for share transfers (FC-TRS) and annual returns (FLA).
Requires compliance with the 'Fair Market Value' (FMV) as per RBI guidelines.
Mandatory KYC verification of the foreign investor by the Authorized Dealer (AD) bank.
Crucial for future repatriation of dividends and capital by the investor.
Mandatory for all Indian companies receiving foreign investment (FDI)
Filing of Form FC-GPR on the RBI's FIRMS portal
Covers inbound equity, compulsorily convertible debentures, and preference shares
Requires valuation certification by a Chartered Accountant

Form FC-GPR Filing

Reporting share issuance to non-residents.

Remittance: Receipt of funds through the AD bank and obtaining the FIRC and KYC documents.
Valuation: Getting a Valuation Certificate from a CA to ensure shares are not issued below fair value.
Allotment: Issuing shares to the foreign investor within 60 days of receiving the funds.
Reporting: Submitting the FC-GPR form on the FIRMS portal within 30 days of allotment.

Documents required

Document requirements vary by entity type, state, premises, and authority. These are the usual groups we verify before submission.

FEMA Checklist: Foreign Inward Remittance Certificate (FIRC) from the bank.; KYC report of the non-resident investor from their bank.; Valuation Certificate by a Chartered Accountant (using DCF method).; Board Resolution for the allotment of shares.; Memorandum and Articles of Association (MOA/AOA).; CS Certificate regarding compliance with FDI guidelines.; PAS-3 (ROC filing) for the allotment of shares.

Process and timeline

Remittance: Receiving funds and getting the AD bank to issue the FIRC.
FIRMS Registration: Creating an entity user and business user profile on the RBI's FIRMS portal.
Valuation: Obtaining the fair market value of the shares from a CA.
Share Allotment: Passing a board resolution and issuing shares to the investor.
Online Filing: Submitting Form FC-GPR on the FIRMS portal with all attachments.
Bank Approval: Coordinating with the AD bank for the scrutiny and approval of the filing.

Expert review

FEMA & RBI Compliance India | FC-GPR Filing Online content is reviewed by QuickTaxperts Legal & Forex Team, FEMA & RBI Consultants.

Checklist-led review
Document pre-verification
Authority-specific next steps

Frequently asked questions

These quick answers cover common planning questions before you request a checklist or quote.

What is FEMA compliance?: It is the legal requirement to report and manage foreign exchange transactions in India as per RBI rules.
What is FC-GPR?: It is the form used to report the issuance of shares by an Indian company to a person resident outside India.
What is the time limit for filing FC-GPR?: It must be filed within 30 days from the date of the allotment of shares.
What is the FLA Return?: FLA (Foreign Liabilities and Assets) is an annual return to be filed by companies that have received FDI or made ODI.
What happens if I delay the filing?: Delayed filing attracts Late Submission Fees (LSF) or may require 'Compounding' with the RBI.
What is a Valuation Certificate?: It is a report from a CA proving that the shares were issued at a price not less than the fair market value.
Who is an 'Authorized Dealer'?: An Authorized Dealer (AD) is usually a bank authorized by the RBI to handle foreign exchange transactions.
Can a foreign national start an LLP?: Yes, but subject to specific FDI conditions and reporting requirements under FEMA.