FC-GPR Filing Procedure

Unlocking FDI in India! This concise guide demystifies FC-GPR filing: docs, deadlines, fees & tips for smooth compliance.

FC GPR filing stands for Foreign Currency Gross Provisional Return. It’s a mandatory form that Indian companies must file with the Reserve Bank of India (RBI) to report the receipt of foreign direct investment (FDI) in equity instruments. This includes equity shares, compulsorily convertible preference shares, and compulsorily convertible debentures.

What is FC-GPR (Foreign Currency- Gross Provisional Return)?

FC-GPR stands for Foreign Currency- Gross Provisional Return. It’s a mandatory document that Indian companies must file with the Reserve Bank of India (RBI) to report the receipt of foreign direct investment (FDI) in the form of equity instruments. These instruments include equity shares, compulsorily convertible preference shares, and compulsorily convertible debentures.

Purpose of FC-GPR Filing

The main purpose of filing the FC-GPR form is to ensure transparency and compliance with regulations related to foreign investment in India. It provides the RBI with valuable data on:

• The amount and source of foreign investment in India
• The sectors attracting foreign investment
• The compliance of Indian companies with FDI regulations

This information helps the RBI:

• Formulate and implement FDI policies
• Monitor the flow of foreign investment
• Identify and address any potential risks associated with foreign investment

Ultimately, the FC-GPR filing process helps to create a stable and predictable environment for foreign investors in India.

Applicability

• Issue of capital instruments to non-residents: The FC-GPR form is applicable when an Indian company issues equity instruments to a person resident outside India.
• FDI subject to Consolidated FDI Policy: The investment must fall within the scope of the Consolidated FDI Policy, which outlines sectoral caps, entry routes (automatic or approval), and pricing guidelines.

Conditions for Filing the FC-GPR Form

The FC-GPR form must be filed under the following conditions:

• An Indian company receives FDI in the form of equity instruments.
• The FDI falls within the scope of the Consolidated FDI Policy.
• The investment is made by a person resident outside India.

Here are some additional details to keep in mind:

• The form must be filed electronically through the RBI’s Foreign Investment Reporting and Management System (FIRMS) Portal.
• The deadline for filing is 30 days from the date of allotment of the equity instruments.
• Non-compliance with filing requirements can lead to penalties and even restrictions on future FDI transactions.

Due Date for Filing FC-GPR Form

The FC-GPR form must be filed within 30 days from the date of allotment of the capital instruments to the non-resident investor. Timely filing is crucial to ensure compliance with regulatory requirements and avoid potential penalties.

Documents Required for Filing the FC-GPR Form

To complete the FC-GPR filing process, you’ll need to gather the following documents:

1. FIRC (Foreign Inward Remittance Certificate): This certificate confirms the receipt of foreign funds into the Indian company’s bank account.
2. KYC (Know Your Customer) Report of the Remitter: This report verifies the identity and address of the foreign investor.
3. Valuation Report: This report, prepared by a chartered accountant or merchant banker, outlines the method used to determine the price of the equity instruments issued to the foreign investor.
4. Board Resolution for Allotment of Securities: This resolution authorizes the company to issue equity instruments to foreign investors. 
5. List of Allottees: This list provides details of the investors who have been allotted the equity instruments.
6. Declaration by Authorized Representative: This declaration confirms that the company has complied with all applicable FDI regulations.
7. Other Documents (as applicable): 

• Copy of FIPB approval (if required)
• Letter of Debit Authorization
• Declaration for conversion of CCPS
• Pricing guidelines declaration
• Reason for any delay in submission (if applicable)

FC-GPR Filing Process

• Registration on FIRMS Portal: 

The Indian company must register as an Entity User and a Business User on the RBI’s Foreign Investment Reporting and Management System (FIRMS) Portal.

• Form Submission: 

Fill in the FC-GPR form electronically through the FIRM’s Portal, providing details about the investor, instrument, issue price, FDI sector, and compliance with pricing guidelines.

• Authorization: 

Two designated signatories of the Indian company must authorize the form.

• Submission by Authorized Dealer Bank: 

The authorized dealer bank (the bank that facilitated the FDI transaction) verifies the form and submits it to the RBI on behalf of the Indian company.

• For comprehensive details, refer to the RBI’s Master Direction on Reporting under the Foreign Exchange Management Act (FEMA), 1999.
• The FIRMS Portal provides user manuals and FAQs to assist with the filing process.

FAQ’s

Other Important Topics:

• FC-GPR Filing for Foreign Direct Investment (FDI) Compliance in India