All About FC-GPR Filing and Compliance: A Comprehensive Guide

 ExExplore the complete guide to FC-GPR filing and compliance, designed to provide you with a clear understanding of this crucial process. From the definition  and penalties for non-compliance, this article covers all the essential informatiof FC-GPR to the filing requirementson you need to know.



What is FC-GPR?

FC-GPR, also known as Foreign Currency- Gross Provisional Return, is a form required by the Reserve Bank of India (RBI) for entities that receive foreign direct investment (FDI) as capital investment. This form must be submitted within 30 days of issuing shares, convertible debentures, or convertible preference shares to the investor. It serves as a reporting mechanism to ensure compliance with RBI's FDI regulations.


Entities Covered:

Various types of entities fall under the FC-GPR filing requirement, including:


Companies registered under the Companies Act, 2013.

Limited Liability Partnerships (LLPs) registered under the Limited Liability Partnership Act, 2008.

Startups meeting the conditions specified in the Notification No. G.S.R 180(E) dated February 17, 2016, issued by the Department of Industrial Policy & Promotion, Ministry of Commerce & Industry, Government of India.

FDI Entry Routes:

Foreign direct investments in India can be made through either the automatic route or the government approval route. The automatic route does not require prior approval, while investments in restricted sectors or those needing permission must be approved by the respective ministry/department of the government.


Prohibited FDI Sectors:

Certain sectors are not open to FDI under the current policy. These include lottery businesses, chit funds, trading in transferable development rights (TDR), manufacturing of tobacco products, gambling and betting, and more.


Form FC-GPR Filing Process:

To file Form FC-GPR, follow these steps:

  • Creation of Business User Account: Register for a business user account on the FIRMS Portal, providing essential details and a signed authorization letter.
  • Log in to FIRMS Portal: Access the portal using the provided login credentials.
  • Fill and Submit the Form: Complete the FC-GPR form in the Single Master Form (SMF) workspace, providing transaction-related information and necessary attachments.
  • Form Approval or Rejection: After submission, the form is reviewed by the authorized dealer bank. If approved, the process is complete. In case of rejection or delayed submission, penalties may be imposed.

Attachments Required for Form FC-GPR:

When filing Form FC-GPR, ensure you include the following documents:

  • Copy of KYC
  • Copy of FIRC Certificate
  • Declaration by the verified representative of the Indian Company
  • CS certificate as per RBI user manual format
  • Pricing guidelines declaration
  • Declaration for conversion of CCPS, if applicable
  • Copy of FIPB approval, if any
  • Valuation Report by Chartered Accountant / Merchant Banker
  • Board Resolution for the allotment of securities
  • Press Note 3 Declaration regarding Beneficial Ownership
  • MOA in case of foreign inward remittance of share subscription amount

Penalty for Non-Compliance:

Failure to submit Form FC-GPR within the specified timeframe may lead to penalties. The penalty amount starts at INR 5,000 or 1% of the total investment amount, up to a maximum of INR 5 lakh, and increases after six months of delay.


Ensure Smooth FC-GPR Compliance:

To ensure a hassle-free FC-GPR filing experience and meet RBI's reporting requirements, consider seeking expert assistance. Contact us at info@companiesnext.com for professional support in complying with FC-GPR reporting.


Conclusion:

By following the guidelines and understanding the FC-GPR filing process, you can ensure compliance with RBI's regulations regarding foreign direct investment. Stay informed, complete the necessary forms accurately, and submit them within the designated timeline to avoid penalties. For any assistance, reach out to our experts at info@companiesnext.com.

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