RBI Compliances
- Filing of forms
- Provide full-fledged information/ guidelines
- Guidance of RBI compliance process along with drafting of documents
- Effortless Online Procedure
- Advices from Professionals
- To accomplish compliances on time
Get Quote Instantly in a Minute
Introduction
In India, the foreign transactions are regulated by the Foreign Exchange Management Act, 1999 and are governed by the Reserve Bank of India as FEMA acts as an important factor for growth of various sectors in India. The main objective of FEMA is to assist in external trade, making balance payments, promoting orderly development, and maintaining the foreign exchange market in India.
Due to the extent of various industrial segmental regulations by the Central and state government, Corporate and the Individuals are continuously facing challenges to comply with the regulations within the stipulated time and manner. The importance of Foreign Exchange Management Act, 1999 (FEMA)/ Reserve Bank of India (RBI) Compliances has increased due to globalization which includes Company Secretary and Chartered Accountants Certifications for the transactions prescribed in the said regulations, making the applications to Reserve Bank of India for as specified under FEMA and RBI regulated transactions, also the advisory services related matters.
Foreign Investment
Generally, in India the foreign investment is attracted in the form of Foreign Direct Investments. The Reserve Bank of India has specifically initiated the process of reporting through the SINGLE MASTER FORM (SMF)unless specifically stated.
Under SMF those transactions are reported where an entity receives any foreign investment as per the FDI Policy of the country and such entity has issued securities as per Foreign Exchange Management Act, 1999.
There are various forms like FC-GPR, FC-TRS, FORM DI etc depending upon the type of transaction carried out
Where an entity issues capital instruments or securities in respect of the foreign investment received from a person resident outside India then such Indian entity is required to file Form FC-GPR (Foreign Currency Gross Provisional Return) within 30 days of issue of such securities or capital instruments. It has to duly signed by MD/any director/CS of the company and to be submitted to the Authorized Dealer and who will forward the same to RBI.
Documents Required
FOR FC-GPR
- PAN Card of the two persons to be appointed as Authorized person on behalf of the entity
- Board Resolution by the entity to authorize any person
- Valuation Report of the Registered Valuer for the valuation carried out for issue of securities (if required)
- Foreign Inward Remittance Certificate (FIRC)
- KYC of the person resident outside India
- Declaration (in the format prescribed by Reserve Bank of India and the format to be shared by us)
- Copy of FIPB approval (if so required);
- Copy of Board Resolution for issue of securities
- Any other document if so required
FOR FC-TRS
- Transfer Agreement or Gift Deed depending upon the case
- Remittance Details through FIRC or outward remittance;
- KYC of the person resident outside India
- Valuation Report
- Board Resolution for purchase/sale of securities (in case of non-individuals);
- Certificate of Incorporation (in case of non-individuals);
- PAN Card of the person resident in India
- Various professional certificate (in the format prescribed by Reserve Bank of India, draft to be shared by us);
- Consent Letter (in the format prescribed by Reserve Bank of India, draft to be shared by us);
- Non-resident declaration (in the format prescribed by Reserve Bank of India, draft to be shared by us);
- Acknowledgment of FC-GPR/FC-TRS in case of sale by the non-resident;
- Any other documents may be required by the Authorized Dealer Bank.
Process of RBI Compliances
1. Complete the Application Form
2. Document Processing
3. Drafting of Documents
4. Filing of Form
5. Getting Compliance done
Get your RBI Compliances starting from ₹ 15000/-
- Professional Consultation
- Coordinating with Reserve Bank of India
- Timely Compliances
- Drafting of Documents
- Certificate by Professional wherever required
- Filing of Forms
More Insights
MODES OF FOREIGN INVESTMENTS
- Preserve the envelope and save the copy of mail: - If the notice comes by speed post or registered post, preserve the envelope. If notice comes on mail then save the copy of that mail as It serves as proof of the dates on which it was posted and received.
- Don’t Ignore the notice: Handle the notice very carefully and sincerely, otherwise you have to pay a hefty penalty. For filing the respective Form FC-GPR and FC-TRS the person resident in India has to create login credentials:-
- Entity Master:- At first an entity master is created for reporting the foreign investment with the objective of obtaining data information related to the total foreign investment received by a person resident in India.
- Business User:- For reporting the foreign investment as when received a Business User Registration is required which can only be done after entity master registration.
Additional Service Offered by Firm Registration
- Application to the Reserve Bank of India for the transactions pertaining to purchase/sale of shares, debentures, other securities and directly to or/and from Resident in India and resident outside India;
- Compliances with the Foreign Direct Investment (FDI) regulations as stated by the Reserve Bank of India for getting various necessary regulatory approvals
- Compliances for the procedure of repatriation of income/assets from India including Chartered Accountants Certification
- Transfer of shares from the Indian resident to non-residents.
- Setting up of Joint Venture (JV)/ Partnership by the Non India Residents or person of Indian origin.
- Issuance of the Statutory Certificates under the FEMA & RBI regulation.
- Advice on the Inbound and Outbound transactions;
- Advise on the External Commercial Borrowings;
- Setting up of Joint Venture (JV)/ Partnership by the Non India Residents or person of Indian orApprovals from Foreign Investment Promotions Board (FIPB),the Ministry of Finance of India and assistance in the preparation of Foreign Collaboration Agreement.
- Advisory service on the change/ exit from the existing Business model.
- Other Advisory Services on the matters related to FEMA / RBI including the Representation before Reserve Bank of India.
FAQs on RBI Compliance
A foreign direct investment (FDI) is a type of investment for controlling the ownership of a business in one country by a foreign entity based in the another country either for expanding the business or operations or to take over the operations of another entity.
- Gambling & Betting
- business of Lottery (including the governments/ private lottery’s, online lottery etc)
- Activities or sectors which are not open to the private sector investment (like atomic energy, railways etc.)
- Retail trading’s (expect the single-brand product retailing)
- Chit Fund Business
- Nidhi company
- Real estate businesses or the construction of farm houses
- Trading in the transferable development rights (TDRs)
- Manufacturing of tobacco’s, cigars, cheroots , cigarallos, cigarettes and other tobacco substitutes
- Agriculture (except floriculture, apiculture, horticulture and cultivation of vegetables and mushrooms under controlled conditions, animals husbandry including the breeding of dogs, the development and production of seeds & planting materials, viniculture & aquaculture under controlled conditions and other services related to the agro and allied sectors).
Where the capital instruments are transferred either by a person resident in India to a person resident outside India, the Indian resident is required to file Form FC-TRS within 60 days from either from date of transfer of remittance or from the date of transfer whichever is earlier to the Authorized Dealer Bank
Note: FC-TRS is not required to be filed when the transfer pertains to transfer of capital instruments in accordance with FEMA 20(R) between a person resident outside India holding capital instruments on a non-repatriable basis and person resident in India
No, only NRIs/ OCIs are allowed to invest in partnership/ proprietorship concerns in India i.e. on non-repatriation basis.
It can be either received through the following ways:-
- mergers and acquisitions;
- building new facilities;
- intra company loans;
- reinvesting profits earned from overseas operations;
- Joint Ventures or strategic alliances;
- transfer to technical know-how;
- Investment through purchase of securities;
- Hiring of expertise.
Where an entity issues capital instruments or securities in respect of the foreign investment received from a person resident outside India then such Indian entity is required to file Form FC-GPR (Foreign Currency Gross Provisional Return) within 30 days of issue of such securities or capital instruments.
As such there is no upfront statutory fees applicable for filing of FC-GPR or FC-TRS on FIRMS portal (like MCA portal), but the Authorized Dealer Bank may charge the fees for processing the Form. This fees varies from Bank to Bank It may also ask for the authorization from the Applicant in order to deduct amount as bank charges from account.
The Indian Company has to issue capital instrument within sixty days from the date of receipt of the consideration.