FORM FCGPR (THEORETICAL AND PRACTICAL ASPECTS)

Posted Date : 10-Jul-2021 , 01:28:16 pm | Posted By CASANSAAR print

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FORM FCGPR (THEORETICAL AND PRACTICAL ASPECTS)

With the objective of integrating the extant reporting structures of various types of foreign investment in India, RBI introduced Single Master Form (SMF) through its Notification RBI/2017-18/194 A.P (DIR Series) Circular No.30. Dated June 07, 2018 w.e.f. September 1, 2018.
SMF Form provides reporting of various forms for foreign investment which includes:

S. No.	Form Name	Description
1	FC-GPR	Issue of capital instruments by an Indian company to a person resident outside India.
2	FC-TRS	Transfer of capital instruments between a person resident outside India and a person resident in India.
3	LLP-I	FDI in LLP through capital contribution and profit shares
4	LLP-II	Disinvestment/ transfer of capital contribution and profit shares in LLP.
5	CN	Issue or transfer of convertible notes
6	DRR	Issue/transfer of Depository Receipts
7	ESOP	Issue of ESOPs / sweat equity shares/ shares against exercise of ESOP by an Indian company to an employee resident outside India.
8	DI	Reporting of downstream investment (indirect foreign investment) in a company or LLP.
9	InVi.	Reporting of investment by a person resident outside India in an Investment vehicle.

FORM FCGPR - THEORETICAL ASPECT
Form Foreign Currency-Gross Provisional Return (FC-GPR):
An Indian company issuing capital instruments to a person resident outside India and where such issue is reckoned as Foreign Direct Investment, for the purpose of these regulations, shall report such issue in Form FC-GPR to the Regional Office concerned of the Reserve Bank under whose jurisdiction the Registered office of the company operates, not later than thirty days from the date of issue of capital instruments. Issue of ‘participating interest/ rights’ in oil fields shall be reported Form FC-GPR.
Foreign Direct Investment (FDI) means investment through capital instruments by a person resident outside India in an unlisted Indian company, or in 10 percent or more of the post issue of paid-up equity capital on a fully diluted basis of a listed Indian company;

Delays in reporting

The person/ entity responsible for filing the Form FC-GPR shall be liable for payment of late submission fee, as may be decided by the Reserve Bank, in consultation with the Central Government, for any delays in reporting.

Penalty in case of Non compliance

S.No	Particulars	Penalty
1	For 1st six months	1% of the total amount of investment subject minimum of Rs. 5,000 and Maximum of Rs/. 5,00,000 per month.
2.	After Six Months	Twice of 1% of the total amount of investment subject minimum of Rs. 5,000 and Maximum of Rs/. 5,00,000 per month.

FORM FCGPR - PRACTICAL ASPECT
Stepwise Procedure of Filing Form FCGPR

S. No.	Particulars
1.	Register your Company on Entity Master on RBI FIRMS Portal i.e. https://firms.rbi.org.in. Attachment: Authority letter from the entity authorizing the person to register as the Entity User for submission of information in the Entity Master along with PAN Card No. of Authorised Person. (After RBI Approval for successfully creation of Entity Master RBI provides Log in Password for Entity Master by Email)
2.	Register your Company as New Business User on RBI FIRMS Portal i.e. https://firms.rbi.org.in. Attachment: Authority letter from the entity authorizing the person to register as the Business User for submission of information along with PAN Card No. of Authorised Person. (After RBI/AD Bank Approval for successfully creation of Entity Master RBI/AD Bank provides Log in Password for Business User by Email)
3.	Log in to https://firms.rbi.org.in and file Form FCGPR. Attachment: KYC Document verified by AD Bank in prescribed format. Certificate of Foreign Inward Remittance received from AD Bank. CA Certificates Valuation Certificate. Certificate for Compliance under FEMA Act, 1999. Declaration by the Authorised Representative of the Company for Compliance under FEMA Act, 1999 and other enclosed attachments. CS Certificate for Compliance under FEMA Act, 1999 by Company secretary of the Indian Company/Practicing Company secretary. Brief Explanation about adjustment of Excess money. CTC of Board Resolution of Subscription/Allotment. Altered Memorandum of Association (MOA). Details of Allotment/Subscription, List of Allotees. ROC Form PAS-3 along with Challan. Share Purchase agreement or any Document evidencing Holding of capital Instrument by Non-resident.
4.	After Submission of Form FCGPR RBI/AD Bank Approves the same by Email.
Link for Draft Format of Attachment to be filed with Form FCGPR: https://rbidocs.rbi.org.in/rdocs/FEMAMASTER/PDFs/SMF-FIRMS347E34AF5938415DAD0904E0584FB5A1.PDF

Source:

Prepared By:
CS Sujeet Kumar
Proprietor
Email: acssujeetkarn@gmail.com

Disclaimer:
The views and opinion expressed in this article are based upon my understanding and do not necessarily be authentic.

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