Foreign Currency Gross Provisional Return (FC-GPR)

FC-GPR stands for Foreign Currency Gross Provisional Return. FC-GPR is a return, which is to be filed on FIRMS Portal of RBI. FIRMS stands for Foreign Investment Reporting and Management System. FC-GPR filed to RBI for information regarding Foreign Investment.

What is FC-GPR?

FC-GPR stands for Foreign Currency Gross Provisional Return. FC-GPR is a return, which is to be filed on FIRMS Portal of RBI. FC-GPR is applicable when an Entity obtain Foreign Direct Investment and the entity allots shares to a foreign investor. This transaction must be reported to the Reserve Bank of India in FC-GPR form within 30 days.

Where do Entity can File FC-GPR?

An Entity can file FC-GPR on FIRMS portal of RBI. FIRMS stands for Foreign Currency Gross Provisional Return. This is a separate portal for Returns regarding Foreign Investment. An Entity can file many forms like FC-GPR, FC-TRS, LLP1, LLP2, Cn form, ESOP form, DRR form, DI form, INVI form.

Applicable Regulations for FC-GPR

Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2017 will be applicable for an entity to file FC-GPR.

Process to file form FC-GPR

Firstly, an entity shall appoint an authorized signatory to sign up and file this form on the behalf of entity. Then the authorized signatory should get registered first on entity user for which the user has to fill a sign up form for entity user form on FIRMS portal of RBI. Then the login credentials will be sent on the E-Mail by RBI which user gave at the time of registration. After getting Login credentials user should fill the complete details of entity after login into FIRMS portal.

Secondly, the authorized signatory should register as Business User on FIRMS Portal on behalf of entity for which the user has to fill a signup form for business user separately from entity user and the login credentials will be sent on E-Mail by RBI within 2 working days. Then the user will able to access Single Master Form under which they can access the form FC-GPR. (Note: Authorized Signatory Letter will be different in Both User Sign up form)

Attachments Required for Form FC-GPR

For Sign-Up

i. Authorized Signatory Letter for Entity user along with PAN Card of Authorized Signatory.

ii. Authorized Signatory Letter for Business user along with PAN Card of Authorized Signatory.

For FC-GPR Form

i. FIRC (Foreign Inward Remittance Certificate)

ii. KYC (Know Your Customer)

iii. CS Certificate

iv. Valuation Report from Chartered Accountant/ Merchant Banker – Certificate from Chartered Accountant / Merchant Banker, Shall indicate the manner of arriving at a price of the shares issued to the person resident outside India

v. FIPB (Foreign Investment Promotion Board) approval (if required)

vi. Letter of Debit Authorization (if required)

vii. Reason for delay in submission (if required)

The Reserve Bank of India and AD Bank may ask for any other documents if required. Once all above documents received, Form FC-GPR can be filed.

Penalty for Non Filing of the form FC-GPR

If Entity fails to comply with above Regulations of filing the form FC-GPR then, RBI imposes penalty for non-compliance of the regulations. The Penalty would include:

i. INR 5000, or

ii. 1% of the total investment, which can goes up to a maximum of 5 Lakh, or

iii. Part thereof for the six month delay and twice the rate thereafter.

This amount to be transferred to RBI’s designated Bank Account.