Compliances and Online Filing of FDI Related Forms (ARF, FCGPR, FCTRS) By-CS Shiriti Kumari


Dear Professional Colleague,

Foreign investment comes into India in various forms. RBI vide its Circular  No. 40 dated  February  01,  2016 has mandated the online filing of the said forms on e-Biz platform http://www.ebiz.gov.in and discontinuation of the manual filing thereof, with effect from February 08, 2016. Following the reforms path, the Reserve Bank has liberalized the provisions relating to such investments:

·   The Reserve Bank has permitted foreign investment in almost all sectors, with a few exceptions. Foreign companies are permitted to set up 100 per cent subsidiaries in India.

·   In many sectors, no prior approval from the Government or the Reserve Bank is required for non-residents investing in India.

·   Foreign institutional investors are allowed to invest in all equity securities traded in the primary and secondary markets. The total investment by all the foreign institutional investors put together should not exceed 24 per cent of the issued and paid-up capital of a company which can be raised up to the level of the prescribed sectoral cap by the respective companies by passing a special resolution to the effect.

·  Foreign institutional investors have also been permitted to invest in Government of India treasury bills and dated securities, corporate debt instruments and mutual funds. The NRIs have the flexibility of investing under the options of repatriation and non-repatriation.

·   The Government allows Indian companies to issue Global Depository Receipts (GDRs) and American Depository Receipts (ADRs) to foreign investors The GDRs/ADRs issued by Indian companies to non-residents have free convertibility outside India

Timelines for Reporting FC-GPR

·         Advance Reporting needs to be filled from 30 days from the date when the Foreign remittance received in the bank account.

·         Allocation of Shares against the investment should be completed within 180 days of receipt of fund.

 

·         The company should file the FC-GPR form within 30 days of allotment of shares.

1. Unique Identification Number from RBI by reporting of Advanced Foreign Remittance.

2. KYC report for the beneficiary if the beneficiary and remitter are different entities.

3. CS certificate

4. Certificate from SEBI registered Merchant Banker / Chartered Accountant indicating the manner of arriving at the price of the shares issued to the persons resident outside India (Valuation report)

5. Disclaimer Certificate

6. Statutory Auditor Certificate

7. Board resolution

8. LRN(Loan Registration Number) allotted

9. copy of FIPB approval (if required)

10. Details of Transfer of shares if any

11. No objection certificate from the remitter for the shares being allotted to the third party mentioning their relationship

12. Letter from the foreign investor explaining the reason for making subscription to shares by the remitter on his behalf

13. Copy of agreement/Board resolution from the investee company for issue and allotment of shares to the foreign investor, other than the remitter

14. Reason for delay in submission (if required)

15. E-Biz supports Class2 digital signature for secure online form submission.

Step by step procedure:

Reporting of Advance Foreign Remittance to RBI- click at https://www.ebiz.gov.in/arf-central

For FC-GPR - click at https://www.ebiz.gov.in/fc-gpr-central 

ADVANCE REPORTING:

Login to e-biz portal https://www.ebiz.gov.in/arf-central register your corporate email I''''d, after completing formality, register yourself as the business user.

Download the Advance Reporting form ebiz portal, fill up all the mandatory details in the form along with following required documents:

1 - FIRC: FIRC will be issued by AD category bank
2 - KYC: KYC will be issued by investor's banker thru swift message which has to be generated in pdf format to be attached with the form.

Ø  FCGPR:


Download the relevant forms from the ebiz portal http://www.ebiz.gov.in/fc-gpr-central. Fill up all the relevant details along with following required documents:

1- Valuation Report
2- FIRC: issued by AD bank
3- Compliance Certificate: to be issued by practising Company Secretary.

LOGIN PROCEDURE:

 

1. Go into my account and do register if the new user:


2. Do continue after 1st step:


3. Complete basic details on ebiz portal including mail id and phone no. Once all details are updated and confirmed, you will get a mail for activation of the account on your registered mail id. Click activate and your account will be Active on e-biz portal. 

 

Further,  Login through an account and now register the organisation by giving basic details. Snapshots enclosed. 




STEP BY STEP PROCEDURE:


Reporting of Advance Foreign Remittance to RBI- click at https://www.ebiz.gov.in/arf-central

For FC-GPR - click at https://www.ebiz.gov.in/fc-gpr-central


ADVANCE REPORTING:

Login to e-biz portal https://www.ebiz.gov.in/arf-central register your corporate email I''''d, after completing formality, register yourself as the business user.

 

Download the Advance Reporting form e-biz portal, fill up all the mandatory details in the form along with following required documents:


·         FIRC: FIRC will be issued by AD category bank

·         KYC: KYC will be issued by investor''''s banker thru swift message which has to be generated in PDF format to be attached with the form.

Ø  FCGPR:

Download the relevant forms from the ebiz portal https://www.ebiz.gov.in/fc-gpr-central. Fill up all the relevant details along with following required documents:

·         Valuation Report

·         FIRC: issued by AD bank

 

·         Compliance Certificate: to be issued by practising Company Secretary.

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