Frequently Asked Questions Creation of Entity And User Master With RBI For Foreign Investment In Indian Companies
Q.1 Which Company Can Be Considered As Entity As Per RBI Norms?
- A company within the meaning of section 1(4) of the Companies Act, 2013
- A Limited Liability Partnership (LLP) registered under the Limited Liability Partnership Act, 2008
- A startup which complies with the conditions laid down in Notification No. G.S.R 180(E) dated February 17, 2016 issued by Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India
Q.2 What are the pre-requisites for getting registration as Entity master?
- A company must opened a bank account (if new) first before transfer because New business user is required to be generated through such authorized bank.
- Authority letter: The entity may issue an authority letter, in the format as given at Annex to the identified personnel authorizing him/her for registering as an Entity user for the entity.
- The Entity user may keep ready all details of foreign investment in the entity.
Q.3 Details of the company required for getting registration as Entity Master.
- Company name
- Valid CIN
- Pan/tan number
- Registered office address
- Authority letter
Q.4 Details to be included in authority letter.
There is set format of authority letter drafted by RBI and company need to download from the site and duly signed by managing director/authorized person.
Q.5 What is the maximum attachment size?
Ans. Maximum attachment size is 1 MB for all attachments in the FIRMS applications.
Refrain from attaching bulky documents and attach only the relevant extracts as and Wherever required.
Q.5 Steps to be followed for the registration of company as Entity user
The following are the steps to be followed by the company for the registration as entity master:-
- Login to https://firms.rbi.org.in/firms/
- Fill the registration form with company details (investee)
- After submission RBI will automatically create registration as per details submitted and will email the findings to the company
- After valid registration and login the company will ask to set the password.
- After setting you will asked to create Entity master.
- Create Entity Master with company present detail.
- After successful creation of Entity master company also need to get New business user Registration
Author Bio
What is the benefit of registering a private ltd company as a startup on FIRMS portal?