Form FC-GPR filing – Checklist and FAQs

FC-GPR

The Reserve Bank has rolled out an online application, i.e., FIRMS (Foreign Investment Reporting and Management System). It provides the reporting of the form FC-GPR. FC-GPR stands for Foreign Currency- Gross Provisional Return. To understand and learn more about this form, let’s dive into the filing procedure, the basic provisions, the FC-GPR checklist and the FAQs relating to FC-GPR.

1. What is FC-GPR?

When an enterprise obtains FDI (Foreign Direct Investment) through capital investment, the entity allots shares to a foreign investor. This transaction must be reported, which needs to be done in the FC-GPR Form issued by the RBI. FC-GPR is applied when entity receives foreign investment, and against such investment, the entity allots shares to the foreign investors. If the same happens, then the entity should file details of such allotment of shares with the Reserve Bank of India within 30 days under the RBI compliances for FDI.

2. When do we need to file Form FC-GPR?

The Filing Form FC-GPR is needed in following cases:

1. In case of incorporation, if the shareholder is a non-resident, this form needs to be filed as it is a mandatory RBI compliance for the issue of shares to a non-resident.

2. The FC-GPR form should be filed within 30 days of allotment of securities.

3. Applicable Regulations for filing of FC-GPR

Inward Remittance of Foreign Direct Investments (FDI) by a person resident outside India is regulated by Foreign Exchange Management (Foreign Exchange Management (Transfer or issue of security by a person resident Outside India) Regulations, 2017.

4. Documents required for filing FC-GPR form

1. Copy of FIRC (Foreign Inward Remittance Certificate)

2. Copy of KYC (Know your customer) report for the beneficiary if the beneficiary and remitter are different entities.

3. CS Certificate: Certificate from Company Secretary that all the requirements have been complied with as per Companies Act, 2013.

4. Valuation Report by Chartered Accountant / Merchant Banker- Certificate from Chartered Accountant or Merchant Banker, shall Indicate the manner of arriving at a price of the shares issued to the person resident outside India:

5. Copy of FIPB approval (if required);

6. Board resolution for the Allotment of Securities;

7. Appointment of Authorised Representative;

8. Letter of Debit Authorization;

9. Reason for any delay in submission, if required;

The RBI (Reserve Bank of India) or AD Bank may ask any other documents if required. Once all the above documents received, form FC-GPR to be filed.

5. Penalty For Non-Filing of FC-GPR

1. INR 5000 or

2. 1 % of the total amount of investment, which can up to a maximum of 5 lakh or

3. Part thereof for the first six months of delay and after that rate will be 2 times. This amount to be transferred into an RBI’s designated bank account.