Introduction

FC-GPR Form filing is an important regulatory filing for all Indian Companies who receive FDI (Foreign Direct Investment). It is a form which a company submits to RBI for reporting the issue of eligible instruments to the overseas investor against the FDI inflow.As per the FEMA act, any Indian Company that issues shares to foreign investors should report to the RBI regarding detailed transactions through FC-GPR form filings. Within 30 days from the share allotment, the company must file this form that ensures all the compliance with FEMA and RBI regulation. The FC-GPR form needs several details during the filing such as KYC details from the bank ,foreign investors details, investment amount, issuance date and many more. Filing the form accurately and timely is vital to avoid hefty penalties or any future delays. In this page, we will go through all the details that include FDI reporting requirements, FC-GPR requirements, stepwise procedure, penalties and due dates.

What is FDI Reporting?

FDI Reporting is a lawful procedure for informing RBI (Reserve Bank of India) regarding any FDI (Foreign Direct Investment) obtained by an Indian Company. It is a mandatory compliance that is governed under the FEMA Act (Foreign Exchange Management Act) of 1999. Under this reporting the inflow of foreign funds and issuance of capital instruments to foreign investors must be reported by companies to the RBI. This reporting is generally submitted through a specific form that is Form FC-GPR that reports the issues of capital instruments. Accurate FDI reporting ensures that all the compliance is done with regulatory requirements and aids in boosting transparency in foreign transactions.

When FC-GPR Required?

When an Indian company gets FDI through issue of shares/ convertible debentures/ convertible preference shares from investors, Form FC-GPR is required to be filled. FCGPR is also required in case of conversion of ECB into equity along with Form ECB-2. This form should be submitted to the RBI (Reserve Bank of India) on FIRMS (Foreign Investment Reporting and Management System) portal within 30 days of the allotment of shares/capital instruments. It is a vital compliances under the FEMA act that ensure accurate and proper documentations and regulation of outside investments into the Indian Companies.

Required Documents/Details for FC-GPR Filing

The complete list of required documents and details for Form FC-GPR filing is given in below mentioned table:

Stepwise Procedure for FC-GPR Filing

Here, is the stepwise procedure for FC-GPR filing given below:

Step 1: Creation of Entity user/Entity Master

For first time filings, New Entity Users login needs to be created for the company first. In the new entity user basic company details like CIN no , authorized person email etc along with authority letter attachments goes. It is approved by the AD bank in 1-2 days.

Once an Entity user is created, login id and password comes on authorized person email . After this entity user form is filed with issue details and other company basic details . It is approved by AD bank in 2-3 days.

Step 2 : Registration of New business User

Once Entity master form is approved , new business user registration needs to be done .It is basically authorized person login to report the transactions for the entity that has authorized him during entity master registration.Further, at the time of registration, BU has to select the IFSC code of the bank which would approve the eKYC and the reporting would be made in SMF. In case the IFSC details are changed i.e BU wishes to submit the reporting to another branch or another bank, the entity being the same, he/she needs to repeat the registration process for Business users with the new IFSC code and obtain separate Login.

After BU submits the registration form, the same will have to be verified by the AD Bank Branch concerned. The approval/ rejection of the same would be communicated through email notification to the BU.Once approved login id and password comes through email. It generally takes 4-5 working days to get business user registration.

Step 3 : Login into FIRMS Portal and Reset Password

Once a business user is created , login to the firm's portal using id and password and reset default password.

Step 4 : Login SMF for form filing and submission

Single Master form ( SMF ) is a master form which provides for the reporting of 9 forms for foreign investment viz., FC-GPR, FC-TRS, LLP-I, LLP-II, CN, DRR, ESOP, DI, InVi. Before FC-GPR form filing, you have to login into the Single Master Form (SMF) section via the FIRMS Portal. Basically this section is for reporting foreign investment. Click on a dropdown menu tab of Return type. Click on it and then select Form FC-GPR. Next, go with Add New Return. Here, the FC-GPR form will open where you need to provide all the required and necessary information related to the foreign investment such as types of transaction and related information. These are common investment details to all forms.

Step 5: Complete the FC-GPR form

Here, You will get five tabs, fill all of them accordingly:

• Tab 1: Issue Details: In this section fill the details on the types of shares issued and the issue’s objective.
• Tab 2: Foreign Investor Details: Fill in the details of the foreign investors such as the country's name, and the amount of investment.
• Tab 3: Amount of Issue: Clarify the complete investment amount and currency.
• Tab 4: Particulars of Issue: Here, you need to mention the issue’s date, share prices and other related specific transactions.
• Tab 5: Shareholding Pattern: The last section requires you to update the company's shareholding pattern before and after the issue.

Step 6: Submit the form

At the end, when all these aforementioned tabs are done, you have to save and submit the form to the RBI or save as Draft if you want more time to review it for later. Click Reset if you wish to reset all the information and start afresh, or Back if you wish to return to the dashboard without saving.

Approval or resubmission will be communicated by RBI via mail . In case of any query , forms need to be resubmitted with documents asked . If approved , fee and bank details will be shared by RBI and needs to be paid within 7 days of approval. No other acknowledgement will be shared from the RBI end.

Professional Fees for Form FC-GPR Filing?

There are no government fees required for Form FC-GPR Filing, but the professional fees may vary as per their expertise. At Bizfoc, We provide this service at a minimum rate of Rs.4,999 only, assuring the accurate compliance and effective reporting requirements.

Penalties/late fee in Delay Filing

If there is any delay to file FC-GPR (Foreign Currency-Gross Provisional Return) form, the company has to face penalties as per the FEMA guidelines. Late fee for FC-GPR (Foreign Currency-Gross Provisional Return) is calculated per return basis.

There is a penalty of Rs.7,500 per return . It is calculated at Rs 7500 + (0.025% × A × n) per month or part thereof, for late reporting.

As per the RBI’s circular, the maximum LSF amount cannot exceed the amount involved in the delayed reporting.

In case even Late submission fee is not paid within 3 years , Penal action under FEMA , 1999 will be taken.

Note:

a) “n” is the number of years of delay in submission rounded-upwards to the nearest month and expressed up to 2 decimal points.
b) “A” is the amount involved in the delayed reporting.

Time taken in Form FC-GPR filing?

The time taken for Form FC-GPR filing basically depends upon the documentation and the transaction's complexities. If all the required documents are accurate and filled accurately, generally it will take 10 to 15 days. Furthermore, the timeframe may vary according to the specific situation and scenarios. Bizfoc ensures your filing process in just 15 days, that includes many steps that assure the accurate compliances such as documentation, preparation, verification and many more to complete the procedure more effortlessly.

How can Bizfoc help you?

Bizfoc provides a comprehensive professional guidance over FC-GPR filing that guarantees compliance with FEMA guidelines. Our service includes:

1. Expert Guidance: Our professional team will provide expert and detailed advice over FC-GPR form filing accurately that covers each required tab and information.
2. Document Preparation: Our expert team helps you to collect and prepare all the necessary documents that make your procedure more fluent. We will coordinate with AD banks for any documentation required from their end.
3. Form Submission: We have a number of experienced team members who ensure timely and accurate filing that also avoids hefty penalties. Connect with us and make your FC-GPR filing procedure easier and penalty free.

Conclusion

FDI Reporting (FC-GPR form filing) is vital for compliance with FEMA regulation. Bizfoc is here to make your FC-GPR process more seamless for you. Using our expert guidance, document preparation, and filing services, we ensure that your company avoids penalties and maintains a smooth relationship with regulators. Trust Bizfoc to manage your FC-GPR filing accurately, assuring you to focus on business growth while we take care of the compliance details.

Frequently Asked Questions