FC- GPR & RBI Compliance

The statutory reporting form called Foreign Currency-Gross Provisional Return (FC-GPR) is used when an Indian company issues capital instruments to an individual who does not reside in India. 

Every time an Indian firm issues equity shares or other capital instruments to a foreign investor, the allotment must be reported to the RBI within the allotted time frame via the company's Authorised Dealer (AD) bank.

The deadline for submitting a FLA return

Every year on July 15th, the FLA Return must be filed. Entities must file the FLA Return using unaudited or preliminary data if the accounts are not audited by this date. The updated FLA Return must be filed by September 30 of the same year if the accounts are audited later.

Signing up for the RBI Portal:

The entities must register on the RBI Portal in order to file the FLA Return. You must fill out the "FLA User Registration Form" in order to register an account if you are a new user. Upload a scanned and properly signed Authority letter to finish the registration procedure.

Completing the FLA Return:

Entities can access the portal using their username, password, and an OTP that is delivered to the registered email address following a successful registration. Click "FLA Online Form" after logging into the portal to begin completing the FLA return.

Common mistakes while filing FC-GPR

1. Incorrect or non-compliant valuation certificate: 

A professional CA or a merchant banker registered with SEBI must provide the firm valuation, and it must adhere to FEMA pricing criteria.

2. Incomplete or inconsistent investor KYC:

The KYC provided by the AD bank must precisely match the investor information in the FC-GPR.

3. Inability to communicate with the AD bank:

The AD bank handles FC-GPR filings. The bank may raise questions or reject the form if it is not told beforehand or if the supporting documentation is ambiguous.

4. Unsigned attachments or incomplete declarations:

Technical rejection is frequently caused by missing board resolutions, incorrectly signed certificates, unstamped authorisation letters, or changed declaration forms.

5. Incorrect classification of the instrument:

Rejection or issues with compliance may result from misreporting CCPS, CCDs, convertible notes, or equity shares.

Step by step FC-GPR filing Process

Step 1: Review of Eligibility and Transaction

We examine sectoral compliance, instrument type, and the type of foreign investment.

Step 2: Valuation and Documentation 

All supporting documentation, including reports, are prepared and validated with our help.

Step 3: Register on the FIRMS Portal

We assist with entity and user registration on the RBI FIRMS portal as needed.

Step 4: Completing the FC-GPR

The return is timely and precisely filed, guaranteeing that all data validations are fulfilled.

Step 5: Recognition and Follow-Up

Return RBI clearances and respond to any questions or requests for clarification.

Required Documents

• The documents required for filing FC-GPR form:
• Copy of Foreign Inward remittance Certificate(FIRC)
• Copy of KYC
• Copy of FIPB approval 
• Valuation Report by CA
• Board resolution for the Allotment of Securities
• Letter of Debit Authorization 
• Appointment of Authorised Representative
• Reason for any delay in submission

More than merely a statutory document, Form FC-GPR is a vital tool for monitoring and managing foreign investment in India. Indian businesses must exercise extreme caution to maintain compliance with FEMA and RBI regulation’s in light of the growing FDI inflow, particularly in the tech, manufacturing, and services sector’s. In addition to ensuring seamless regulatory compliance, a timely and accurate FC-GPR submission improve’s the company's reputation with banks and investor’s.

Companies should seek expert assistance for filings, keep detailed paperwork, and closely stick to deadlines in order to prevent issue’s.